Jason Company produces 50,00o units of Product Q and 6,000 units of Product Zduring a period. In that period, four set-ups were required for color changes. All units ofProduct Q are black, which is the color in the process at the beginning of the period. Aset-up was made for 1,000 blue units of Product Z; a set-up was made for 4,500 redunits of Product Z; a set-up was made for 50o green units of Product Z. A set-up wasthen made to return the process to its standard black coloration and the units of ProductQ were run. Each set-up costs P500.1. Refer to Jason Company. If set-up cost is assigned on a volume basis for the department, what is the approximate per-unitset-up cost?2. Refer to Jason Company Assume that Jason Company has decided to allocateoverhead costs using levels of cost drivers. What would be the approximate cost forProduct Q?

A Cost Driver are important in allocating the costs. Some of the examples of Cost drivers are Direct…

Answered: Jason Company produces 50,000 units of…

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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Marigold's is a brand of lotion created specifically for sensitive skin. The company, which goes by the same name, manufactures in small batches so the lotion retains its special qualities. The batch in process on December 31 included 100 units, determined to be 60% complete as to conversion costs. DM costs had already been added, as all DM is added at the very beginning of processing During January, Marigold's started another 1,900 units, and by January 31, 1,900 units were completed, leaving 100 units still in process. Unitsin ending WIP Inventory were 50% complete for conversion costs. The following costs existed or were added to the WIP Inventory account in January. Costs in beginning WIP Inventory (from last period) Costs added to WIP Inventory this period Total costs to account for Total Costs $742 3,973 $4,715 Marigold's uses the weighted-average method of process costing DM $357 1,043 $1,400 Conversion Costs $385 2,930 $3,315 D SI
The Early Pearly Company makes product for lovers only in two departments: Forming and Scenting. Forming began the month with 500 products for lovers only in process that were 100% complete as to material and 40% complete as to conversion. During the month, 6,500 products only for lovers were started. At month end, Forming had 2,100 products for lovers only that were still in process that were 100% complete as to material and 50% complete as to conversion. Assume Forming uses the weighted average method of process costing. Costs in the Forming Department are as follows: Beginning Work in process costs: Material P1,000 Conversion 1,500 Current Costs: Material P3,200 Conversion 5,045 The Scenting Department had 600…
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McKinney Company produces 50,000 units of Product Q and 6,000 units of Product Z during a period. In that period, four set-ups were required for color changes. All units of Product Q are black, which is the color in the process at the beginning of the period. A set-up was made for 1,000 blue units of Product Z; a set-up was made for 4,500 red units of Product Z; a set- up was made for 500 green units of Product Z. A set-up was then made to return the process to its standard black coloration and the units of Product Q were run. Each set-up costs $500. Refer to McKinney Company. If set-up cost is assigned on a volume basis for the department, what is the approximate per-unit set-up cost for Product Z? Select one: O a. $.036 Ob. None of the responses are correct c. $.010 d. $.040
The Mixing Department of Foods for You had 50,000 units to account for in October. Of the 50,000 units, 15,000 units were completed and transferred to the next department, and 35,000 units were 45% complete for conversion work. All of the materials are added at the beginning of the process. Conversion costs are added evenly throughout the mixing process and the company uses the weighted-average method. Compute the total equivalent units of production for direct materials and conversion costs for October. Foods for You Production Cost Report - Mixing Department (Partial) Month Ended October 31 UNITS Units accounted for: Completed and transferred out Ending work-in-process Total units accounted for Physical Units 15,000 35,000 50,000 Equivalent Units Direct Materials 15,000 35,000 50,000 Conversion Costs 15,000 15000 35000 ...
Brighto processes a single type of paint for commercial use. For the current period the following information is given: Material Costs Conversion Costs Units Beginning Work-in-Process 13,000 (WIP) $ 47,300 $ 49,400 Started During the Current Period $ 520,000 $ 784,225 80,000 Ending Work-in-Process (WIP) 7,500 All materials are added at the beginning of the production process. The beginning WIP was 40% complete as to conversion, while the ending WIP was 30% completed for conversion purposes. b. Calculate:- Brighto’s *physical flow of units: *equivalent units: *cost per equivalent unit: *assign costs to Finished Goods: *and Ending Work-in-Process (WIP) inventories using the WEIGHTED AVERAGE method of process costing. Clearly indicate the costs assigned to inventory categories:
The Early Pearly Company makes product for lovers only in two departments: Forming and Scenting. Forming began the month with 500 products for lovers only in process that were 100% complete as to material and 40% complete as to conversion. During the month, 6,500 products only for lovers were started. At month end, Forming had 2,100 products for lovers only that were still in process that were 100% complete as to material and 50% complete as to conversion. Assume Forming uses the weighted average method of process costing. Costs in the Forming Department are as follows: Beginning Work in process costs: Material P1,000 Conversion 1,500 Current Costs: Material P3,200 Conversion 5,045 The Scenting Department had 600…
Silva Coporation uses the weighted average process costing method. The Mixing Department at Silva had 17,000 units in beginning inventory. These units contained $70,000 in direct materials, $80,000 in direct labor, and $60,000 in overhead. During the period, the department incurred costs of $320,000 in direct materials, $400,000 in direct labor and $200,000 in overhead and started 80,000 units. Ending inventory consisted of 6,000 units which were 100% complete with respect to direct materials and 50% complete with respect to direct labor and overhead. What is the cost per equivalent unit for direct labor (rounded to the nearest cent)? O $5.28 O $5.11 O $4.94 $0.86
What will be the equivalent units for materials and cost per unit of materials.
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Brightmore Corporation manufactures three styles of lighting fixtures using five sequential operations. Within each operation, regardless of the style of fixture produced, the same procedures are used to perform that operation (so that time and costs are the same). All direct materials are added for each batch at the beginning of the operation for that batch. During June, 1,500 units of Style A, 500 units of Style B, and 1,000 units of Style C were started in the first operation; all were completed and transferred to the second operation, except 500 units of Style C which were 60% complete as to conversion costs. There was no work in process on June 1. Following are production costs for June: Direct Labor $18,000 Overhead 10,000 Direct Materials: Style A 20,000 Style B 10,000 Style C 30.000 Total Costs $88,000 Required: 1. Compute the total cost of work completed and transferred to the second operation in June for each of the three styles of lighting fixtures produced. 2. Compute the…
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