Cullumber Company manufactures hockey pucks and soccer balls. For both products, materials are added at the beginning of t production process and conversion costs are incurred evenly. Cullumber uses the FIFO method to calculate equivalent units of production. Production and cost data for the Assembly Department for August are as follows: Production Data-Hockey Pucks Work in process inventory units, August 1 Units started into production Work in process inventory units, August 311 Cost Data-Hockey Pucks Work in process inventory. August 1 Costs added during August. Direct materials Direct labour Manufacturing overhead Production Data-Soccer Balls Work in process inventory, August 1 Costs added during August Direct materials Direct labour Manufacturing overhead Materials Conversion cost Materials Work in process inventory units, August 1 Units started into production Work in process inventory units, August 31 Cost Data-Soccer Balls Conversion cost Beginning WIP $ Complete beginning WIP Started and completed Hockey pucks Ending WIP 2. The unit production costs for materials and conversion costs Total costs. Hockey pucks Costs for units transferred out Units 400 1.900 $ 600 $ $1,000 1,900 1.120 Calculate the following for both the hockey pucks and the soccer balls: (Round answers to the nearest whole dollar, eg. 5,275. Round per unit costs to the 3 decimal places, eg. 15.253.) 1. The equivalent units of production for materials and conversion costs 1.440 Percent Complete as to Conversion Costs Hockey pucks 70% 30% 200 2,100 150 $440 3. The assignment of costs to units completed and transferred out and to work in process inventory at the end of the accounting period. 2,940 980 1,492 Soccer balls Soccer balls 90% $ 60% Soccer balls
Cullumber Company manufactures hockey pucks and soccer balls. For both products, materials are added at the beginning of t production process and conversion costs are incurred evenly. Cullumber uses the FIFO method to calculate equivalent units of production. Production and cost data for the Assembly Department for August are as follows: Production Data-Hockey Pucks Work in process inventory units, August 1 Units started into production Work in process inventory units, August 311 Cost Data-Hockey Pucks Work in process inventory. August 1 Costs added during August. Direct materials Direct labour Manufacturing overhead Production Data-Soccer Balls Work in process inventory, August 1 Costs added during August Direct materials Direct labour Manufacturing overhead Materials Conversion cost Materials Work in process inventory units, August 1 Units started into production Work in process inventory units, August 31 Cost Data-Soccer Balls Conversion cost Beginning WIP $ Complete beginning WIP Started and completed Hockey pucks Ending WIP 2. The unit production costs for materials and conversion costs Total costs. Hockey pucks Costs for units transferred out Units 400 1.900 $ 600 $ $1,000 1,900 1.120 Calculate the following for both the hockey pucks and the soccer balls: (Round answers to the nearest whole dollar, eg. 5,275. Round per unit costs to the 3 decimal places, eg. 15.253.) 1. The equivalent units of production for materials and conversion costs 1.440 Percent Complete as to Conversion Costs Hockey pucks 70% 30% 200 2,100 150 $440 3. The assignment of costs to units completed and transferred out and to work in process inventory at the end of the accounting period. 2,940 980 1,492 Soccer balls Soccer balls 90% $ 60% Soccer balls
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Process Costing
Process costing is a sort of operation costing which is employed to determine the value of a product at each process or stage of producing process, applicable where goods produced from a series of continuous operations or procedure.
Job Costing
Job costing is adhesive costs of each and every job involved in the production processes. It is an accounting measure. It is a method which determines the cost of specific jobs, which are performed according to the consumer’s specifications. Job costing is possible only in businesses where the production is done as per the customer’s requirement. For example, some customers order to manufacture furniture as per their needs.
ABC Costing
Cost Accounting is a form of managerial accounting that helps the company in assessing the total variable cost so as to compute the cost of production. Cost accounting is generally used by the management so as to ensure better decision-making. In comparison to financial accounting, cost accounting has to follow a set standard ad can be used flexibly by the management as per their needs. The types of Cost Accounting include – Lean Accounting, Standard Costing, Marginal Costing and Activity Based Costing.
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Transcribed Image Text:Cullumber Company manufactures hockey pucks and soccer balls. For both products, materials are added at the beginning of the
production process and conversion costs are incurred evenly. Cullumber uses the FIFO method to calculate equivalent units of
production. Production and cost data for the Assembly Department for August are as follows:
Production Data-Hockey Pucks
Work in process inventory units, August 1
Units started into production
Work in process inventory units, August 31
Cost Data-Hockey Pucks
Work in process inventory, August 1
Costs added during August
Direct materials
Direct labour
Direct labour
Manufacturing overhead
Materials
Conversion cost
Manufacturing overhead
Production Data-Soccer Balls
Work in process inventory units, August 1
Units started into production
Work in process inventory units, August 31
Cost Data-Soccer Balls
Work in process inventory, August 1
Costs added during August
Direct materials
Materials
Conversion cost $
Beginning WIP
$
Complete beginning WIP
Started and completed
Hockey pucks
Ending WIP
2. The unit production costs for materials and conversion costs
Total costs
Hockey pucks
Costs for units transferred out
Units
400
1.900
$
600
$
$1,000
1,900
1,120
Calculate the following for both the hockey pucks and the soccer balls: (Round answers to the nearest whole dollar, eg. 5,275. Round
per unit costs to the 3 decimal places, eg. 15.253.)
1. The equivalent units of production for materials and conversion costs
1,440
Percent Complete as to
Conversion Costs
Hockey pucks
30%
70%
200
2,100
150
$440
3. The assignment of costs to units completed and transferred out and to work in process inventory at the end of the accounting
period
2,940
980
1,492
Soccer balls
Soccer balls
90%
60%
Soccer balls
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