Ellery Company instituted a new process in October, 2016. During October 10,000 units were started in Department A. Of the units started, 1,000 were lost by shrinkage in the process, 7,000 were transferred to Dept. B, and 2,000 remained in Work in Process at October 31. The work in process at Oct. 31 was 100% complete as to materials and 50% complete as to conversion cost. Material costs of P27.000 and conversion costs of P40.000 were charged to Department A in

Ellery Company instituted a new process in October, 2016. During October 10,000 units were started in Department A. Of the units started, 1,000 were lost by shrinkage in the process, 7,000 were transferred to Dept. B, and 2,000 remained in Work in Process at October 31. The work in process at Oct. 31 was 100% complete as to materials and 50% complete as to conversion cost. Material costs of P27.000 and conversion costs of P40.000 were charged to Department A in

Name: Ellery Company instituted a new process in October, 2016. During Octo
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Description: Ellery Company instituted a new process in October, 2016. During October 10,000 units werestarted in Department A. Of the units started, 1,000 were lost by shrinkage in the process, 7,000were transferred to Dept. B, and 2,000 remained in Work in Pro

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Integrity Co. had the following production data (in units) for the month of July 2022:Work in process, beginning- 2,000Started during the period- 90,000Spoiled units- 8,000Work in Process, ending- 6,000Materials are added at the beginning of the process. As to conversion cost, the beginning WIP was 80% incomplete and ending Work In process was 70% completed. Spoilage is detected at the end of the process.What is the equivalent of units for July 2022 for conversion cost? (No need to put P sign and word units)
For Tabik Corp, materials are added at the start of the process in Department B. Units received from Department A costs P11.10 while in Department B, unit costs for materials and conversion costs were P1 and P1.22 respectively. The company’s quantity data showed that WIP beg, which had a cost of P80,000, had 8,000 units and were ¾ done. During the period, Department A transferred 50,000 units to Department B. At the end of the period, WIP has 10,000 units which are 1/5 done and there were 3,000 lost units. What is the unit cost transferred to finished goods if the 3,000 units were lost at the end of processing but were considered abnormal?
4. On April 1, 2021, KAKAYANIN Company had 6,000 units of Work in Process in Department B, the second and last stage of their production cycle. The costs attached to these 6,000 units were Php 12,000 of cost transferred in from Department A, Php 2,500 of material cost added in Department Band Php 2,000 conversion cost added in Department B. Materials are added in the beginning of the process in Department B. Conversion was 50% complete on April 1, 2021. During April, 14,000 units were transferred in from Department A at a cost of Php 27,000; and material cost of Php 3,500 and conversion cost of Php 3,000 were added in Department B. On April 30, Department B had 5,000 units of work in process 60% incomplete as to conversion costs. The costs attached to these 5,000 units were Php 10,500 of cost transferred in from Department A, Php 1,800 of material cost added in Department B and Php 800 of conversion costs added in Department B. a. Using weighted average method, what is the unit cost…
A company follows Process Costing and Manufactures a product in one process. The work in progress at the end of each month and is valued according to FIFO method. At the beginning of the month April 2015, the inventory of WIP showed 400 units, 40% completed, valued as follow:Material3600 Labour3400 Overheads1000 In the month of April material of Rs. 68500 was purchased, wages and overheads amounted to Rs. 79800 and 21280 respectively. Finished production taken in to stock in the month was 2500 units. There was no loss in the process.At the end of the month the work in progress inventory was 500 units, 80% completed as regards material and 60% completed as regards Labour and overhead.You are required to compute equivalent production and prepare a process Account.
Chemical Co. Ltd. produced three chemicals during the month of July, 2018 by three consecutive processes. In each process 2% of the total weight put in is lost and 10% is scrap which from processes (1) and (2) realises $ 100 a ton and from process (3) $ 20 a ton. The products of three processes are dealt with as follows : Process 1 Process 2 Process 3 Passed on to the next process 75% 50% Sent to warehouse for sale 25% 50% 100% Expenses incurred : Process 1 Process 2 Process 3 $ Tons $ Tons Tons Raw materials 1,20,000 1,000 28,000 140 1,07,840 1,348 20,500 Manufacturing wages General expenses 18,520 15,000 10,300 7,240 3,100 Prepare Process Cost Accounts showing the cost per ton of each product.
If FIFO Method is used, the costs of goods manufactured amounted to:
Kramer Corp. began the current period with 4,040 units in process that were 100% complete as to materials and 60% complete as to conversion. Costs of $7,540 in direct materials and $4,780 in conversion costs were incurred in manufacturing those units in the previous period. Kramer ended the current period with 21,500 units completed and 5,160 units still in process. Work in process was 100% complete as to materials and 70% complete as to conversion costs. Kramer incurred $68,900 in direct materials costs, $7,180 in direct labor costs, and $40,000 in manufacturing overhead costs during the period. a) Equivalent unit of material = b) Equivalent unit of conversion = c) Cost per equivalent unit of material =
QUESTION 9 10 p The cost of materials transferred into the Rolling Department of Keystone Steel Company is $510,000from the Casting Department The conversion cost for the period in the Rolling Department is $81,200 ($54,700 factory overhead applied and $26,500 direct labor). The total cost transferred to Finished Goods for the period was $553,200. The Rolling Department had a Beginning Inventory of $25,000 Journalize the cost of transferred out to Finished Goods. Work in Process - Rolling 553,200 Finished Goods 553,200 Finished Goods 553,200 Work in Process - Rolling 553,200 Finished Goods 510,000 Work in Process - Rolling 510,000 Work in Process Rolling 510,000 Finished Goods 510,000
Rivera Company has several processing departments. Costs charged to the Assembly Department for November 2020 totaled $2,268,894 as follows. Work in process, November 1 Materials Conversion costs Materials added Labor Overhead $78,800 48,800 $127,600 1,581,280 225,000 335,014 Production records show that 35,400 units were in beginning work in process 30% complete as to conversion costs, 656,300 units were started into production, and 25,400 units were in ending work in process 40% complete as to conversion costs. Materials are entered at the beginning of each process.
Cullumber Company completes and transfers out 15,360 units and has 2,560 units of ending work in process that are 25% complete as to conversion costs. Materials are entered at the beginning of the process, and there is no beginning work in process. Cullumber uses the FIFO method to compute equivalent units. Assuming unit materials costs of $3 and unit conversion costs of $7, what are the costs to be assigned to units (a) completed and transferred out and (b) in ending work in process? (a) Completed and transferred out (b) Ending work in process tA $ tA $ Costs to be assigned
Nagkamali Inc. adds materials at the start of the process in Department B. Units received from Department A costs P11.10 while in Department B, unit costs for materials and conversion costs were P1 and P1.22 respectively. The company’s quantity data showed that WIP beg, which had a cost of P80,000, had 8,000 units and were ¾ done. During the period, Department A transferred 50,000 units to Department B. At the end of the period, WIP has 10,000 units which are 1/5 done and there were 3,000 normal lost units. Compute for the total cost of units transferred to finished goods using average costing assuming that the lost units were spoiled at the start of processing. (SOLUTIONS MUST BE IN GOOD ACCOUNTING FORM. EXCEL FORM WOULD BE GREAT. ACCOUNT TITLES ON THE LEFT, AMOUNTS ON THE RIGHT. USE TABLE IF NECESSARY. AVOID PARENTHETICAL SOLUTIONS. THANKS, A LOT!)