Haas Company manufactures microchips on a highly automated assembly line. Haas's costing system uses two cost categories,direct materials, and conversion costs. Direct Materials are added at the beginning of the production process.Conversion costs are added evenly throughout the production.CostBeginning WIP20,000 Units$126,600$77,150Direct MaterialsConversion (35% Complete)Started72,000 Units$604,800$385,090Direct MaterialsConversionEnding WIP14,000 Units (60% Complete)Calculate Haas's physical flow of units, equivalent units, cost per equivalent unit and assign costs toFinished Goods and Ending Work-in-Process Inventories using the FIFO method of processing costing.

Computation of Physical units Working: Answer:

Answered: Haas Company manufactures microchips on…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

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Problem 1Q

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Tamar Company manufactures a single product in two departments: Forming and Assembly. Information for the Forming process for May follows. Direct Materials Conversion Percent Percent Units Complete Complete Beginning work in process inventory Units started this period 4,500 100% 40% 32,400 Units completed and transferred out 33,300 Ending work in process inventory 3,600 100% 80% Beginning work in process inventory Direct materials Conversion Costs added this period Direct materials Conversion $ 29,700 332,910 $ 362,610 745,200 3,248,910 3,994,110 Total costs to account for $ 4,356,720 Required: 1. Prepare the Forming department's production cost report for May using the weighted average method. 2. Prepare the May 31 journal entry to transfer the cost of units from Forming to Assembly. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Prepare the Forming department's production cost report for May using the weighted average method. TAMAR…
Question Content Area Assuming a 360-day year, the interest charged by the bank, at the rate of 7%, on a 90-day, discounted note payable of $91,392 is a.$3,199 b.$91,392 c.$6,397 d.$1,599
Becton Labs, Incorporated, produces various chemical compounds for industrial use. One compound, called Fludex, is prepared using an elaborate distilling process. The company has developed standard costs for one unit of Fludex, as follows: Standard Quantity or Direct materials Direct labor Hours 2.30 ounces Standard Price or Rate $ 24.00 per ounce Variable manufacturing overhead 0.80 hours 0.80 hours $ 15.00 per hour $ 3.50 per hour Standard Cost $ 55.20 12.00 2.80 Total standard cost per unit $ 70.00 During November, the following activity was recorded related to the production of Fludex: a. Materials purchased, 12,500 ounces at a cost of $282,500. b. There was no beginning inventory of materials; however, at the end of the month, 3,000 ounces of material remained in ending inventory. c. The company employs 26 lab technicians to work on the production of Fludex. During November, they each worked an average of 150 hours at an average pay rate of $14.00 per hour. d. Variable…
The Samrock Paint Company uses a process-costing system. Materials are added at the beginning of a particular process, and conversion costs are incurred uniformly. Work in process at the beginning of the month is 30% complete, while at the end it is 25% complete. One gallon of material makes one gallon of product. Data is as follows: Beginning inventory 900 gal Direct materials added 9,300 gal Ending inventory 2,400 gal Conversion costs incurred $39,800 Cost of direct materials added $82,950 Conversion costs, beginning inventory $1,700 Cost of direct materials, beginning inventory $2,900 Use the weighted average method. Prepare a schedule of output in equivelent units and a schedule of application of costs to products. Show the costs of goods completed and cost of ending work in process.
Computing EUP Collins Company has the following data for the Assembly Department for August: Conversion costs are added evenly throughout the process. The company uses the Weighted-average method. Compute the equivalent units of production for direct materials and conversion costs for each independent scenario: Units in process at the end of August are 20% complete; materials are added at the beginning of the process. Units in process at the end of August are 80% complete; materials are added at the beginning of the process. Units in process at the end of August are 20% complete, materials are added at the end of the process Units in process at the end of August are 80% complete, materials are added at the halfway point.
Central Company has gathered the following information. Production and Manufacturing Costs Units in beginning work in process Units started into production Units in ending work in process Percent complete for conversion costs in ending work in process Costs incurred: Equivalent Units and Cost Information Direct materials Direct labor Overhead $522,500 O $665,000 $602,000 $366,800 Materials are added at the beginning of the process, meaning 100% of the materials are allocated to Ending Work in Process. How much of the cost is assigned to units transferred? Cost & Completion % $659,400 25,000 115,000 30,000 40% $175,000 $235,400 $191,600
Pesco Processes uses a weighted-average process-costing system. All materials are introduced at the start of manufacturing, and conversion costs are incurred evenly throughout the process. The company's beginning and ending work-in-process inventories totaled 10,000 units and 15,000 units, respectively, with the latter units being 2/3 complete at the end of the period. Pesco started 20,000 units into production and completed 15,000 units. Manufacturing costs follow.Beginning work in process: Materials, $60,000; conversion cost, $150,000Current costs: Materials, $180,000; conversion cost, $480,000Pesco's equivalent-unit cost for materials is: Select one: a. $4.50. b. $6.00. c. $8.00. d. $9.60. e. None of the answers is correct.
A company processes raw material into Products R, B, T and D. Products R, B and T are joint products and D is classified as a by-product. In process 1, 50 000 kg of material will be processed at a cost of R220 600 worth of material, R40 500 labour and R24 500 overheads. After the basic processing in process 1, thirty percent of the input is transferred to process B. In Process B additional costs of R25 400 are incurred and product B (from process B) can then be sold for R28 per kg. They transfer 60% of the original material input (from process 1) to process 2 and then the remainder to Process D. The products in process D are considered a by-product (By-product D) and have a sales price of R6 per kilogram. The cost involved with the selling of the by-product is R7 000 in total. The business account for this by crediting the net market value of by-products produced to the general production costs. In process 2 the materials processed further at a cost of R21 200. They then…
Tamar Company manufactures a single product in two departments: Forming and Assembly. Information for the Forming process for May follows. Units Direct Materials Conversion Percent Complete Percent Complete Beginning work in process inventory 3,000 100% 40% Units started this period 21,600 Units completed and transferred out 22,200 Ending work in process inventory 2,400 100% 80% Beginning work in process inventory Direct materials $ 19,800 Conversion 221,940 $ 241,740 Costs added this period Direct materials 496,800 Conversion 2,165,940 2,662,740 Total costs to account for $ 2,904,480 Assume that Tamar uses the FIFO method of process costing. The units started and completed for may total 19,200. Required: Prepare the Forming department’s production cost report for May using FIFO. Prepare the May 31 journal entry to transfer the cost of units from forming to Assembly.
The Sit-N-Spin Corporation manufactures and assembles office chairs. Sit-N-Spin uses an activity-based costing system to allocate all manufacturing conversion costs. Each chair consists of 20 separate parts totaling $125 in direct materials, and requires 2.0 hours of machine time to produce. Additional information follows: Activity Allocation Base Cost Allocation Rate Materials handling Number of parts $2.75 per part Machining Machine hours $3.00 per machine hour Assembling Number of parts $1.50 per part Packaging Number of finished units $2.75 per finished unit What is the cost of assembling per chair?
Q8 Lens Care Incorporated (LCI) manufactures specialized equipment for polishing optical lenses. There are two models - one mainly used for fine eyewear (F-32) and another for lenses used in binoculars, cameras, and similar equipment (B-13).The manufacturing cost of each unit is calculated using activity-based costing, using the following manufacturing cost pools: Cost Pools Allocation Base Costing Rate Materials handling Number of parts $ 3.60 per part Manufacturing supervision Hours of machine time $ 14.92 per hour Assembly Number of parts $ 3.90 per part Machine setup Each setup $ 57.10 per setup Inspection and testing Logged hours $ 46.10 per hour Packaging Logged hours $ 20.10 per hour LCI currently sells the B-13 model for $4,475 and the F-32 model for $4,580. Manufacturing costs and activity usage for the two products are as follows: B-13 F-32 Direct materials $ 165.10 $ 76.08 Number of parts 172 132 Machine hours 8.50 4.32 Inspection…
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