Gabrus Company produces a product in two departments: (1) Cooking and (2) Finishing. The company uses a process cost accounting system. Accounting Transactions No. Transactions (A) Purchased $60,000 of raw materials for half cash and the rest on account. Units costing $66,000 were completed in the Cooking Department and were transferred to the Finishing Department. (B)

Gabrus Company produces a product in two departments: (1) Cooking and (2) Finishing. The company uses a process cost accounting system. Accounting Transactions No. Transactions (A) Purchased $60,000 of raw materials for half cash and the rest on account. Units costing $66,000 were completed in the Cooking Department and were transferred to the Finishing Department. (B)

Name: (B) [Select][Select]To record transfer of units tothe Finishing Depar
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Description: (B) [Select][Select]To record transfer of units tothe Finishing Department[Select][Select] Gabrus Company produces a product in two departments: (1) Cooking and (2)Finishing. The company uses a process cost accounting system.Accounting TransactionsN

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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Muskoge Company uses a process-costing system. The company manufactures a product that is processed in two departments: Molding and Assembly. In the Molding Department, direct materials are added at the beginning of the process; in the Assembly Department, additional direct materials are added at the end of the process. In both departments, conversion costs are incurred uniformly throughout the process. As work is completed, it is transferred out. The following table summarizes the production activity and costs for February: Beginning inventories: Molding Assembly Physical units 10,000 8,000 Costs: Transferred in — $ 45,400 Direct materials $22,000 — Conversion costs $13,800 $ 16,700 Current production: Units started 25,000 30,000 Units transferred out 30,000 35,000 Costs: Transferred in —…
Victory Company uses weighted average process costing. The company has two production processes. Conversion cost is added evenly throughout each process. Direct materials are added at the beginning of the first process. Additional information for the first process follows. Beginning work in process inventory Units started this period Units completed and transferred out Ending work in process inventory Beginning work in process inventory Direct materials Conversion Costs added this period Direct materials Conversion Total costs to account for Total units Units 67,000 852,000 710,000 209,000 Units $ 298,675 112,263 1,998,825 2,132,987 Direct Materials Conversion Percent Percent Complete 100% Complete 80% 100% Required: 1. Compute equivalent units of production for both direct materials and conversion. Percent Complete $ 410,938 4,131, 812 $ 4,542,750 Equivalent Units of Production (EUP) - Weighted Average Method Direct Materials EUP 90% Conversion Percent Complete EUP
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Terminal Industries (TI) produces a product using three departments: Mixing, Processing, and Filtering. New material is added only in the Mixing Department. The following information is given for the Processing Department for August. TI uses process costing. WIP Inventory Processing Department: August 1 Quantity (60% complete) Transferred-in costs (from Mixing Department) Conversion costs (Processing Department) Total WIP cost: August 1 Current production and costs (August) Units started Current costs Transferred-in costs (from Mixing Department) Conversion costs (Processing Department) Total current cost: August WIP Inventory Processing Department (August 31) Quantity (20 % complete) Transferred-in costs (from Mixing Department) Conversion costs (Processing Department) Total WIP cost: August 31 Flow of units: Units to be accounted for: Beginning WIP inventory Units started this period Total units to account for Units accounted for: Completed and transferred out Units in ending…
BNC Company produces a product in two departments: (1) mixing and (2) finishing. the company uses a process cost accounting system. Accounting Transactions No. Transactions (e) manufacturing overhead is applied to the product based on machine hours used in each department: mixing department - 400 machine hours at $30 per machine hour. Finishing department - 500 machine hours at $20 per machine hour. (f) units costing $56,000 were completed in the mixing department and were transferred to the finishing department. (g) units costing $70,000 were completed in the finishing department and were transferred to finished goods. (h) finished goods costing $40,000 were sold on account for $55,000. Prepare the journal entries to record the preceding transactions for BNC Company. List debit transactions first and then list credit transactions. General Journals No. Account Titles and Explanation Debit ($) Credit ($) (e) work in process inventory - mixing…
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Daosta Inc. uses the FIFO method in its process costing system. The following data concern the operations of the company's first processing department for a recent month. Required: Using the FIFO method: a. Determine the equivalent units of production for materials and conversion costs. b. Determine the cost per equivalent unit for materials and conversion costs. c. Determine the cost of ending work in process inventory. d. Determine the cost of units transferred out of the department during the month. Work in process, beginning: Units in process Percent complete with respect to materials Percent complete with respect to conversion Costs in the beginning inventory: Materials cost Conversion cost Units started into production during the month Units completed and transferred out Costs added to production during the month: Daosta Inc. uses the FIFO method in its process costing system. The following data concern the operations of the company's first processing department for a recent…
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