Nico Manufacturing Company applies process costing in the manufacture of its best-seller product, “brilliant Manufacturing starts in Department 1 where all materials are added at the start of the process. The good units an then transferred to Department 2 where all the incremental materials needed for its completion are added after fina inspection. In Department 1, units are inspected at the 100% stage of production while in Department 2, inspectio takes place when the units are 90% completed. Department 1 uses FIFO costing while Department 2 uses th weighted average costing. The production data for the month of February show the following: Department 1 Department 2 UNITS Units in process, February 1, 2014 Work completed Units in process, February 28 Work to be completed Started in process during February Normal spoilage Abnormal spoilage Work in Process, February 1: Transferred in 8,000 4,000 4/5 7,000 1/5 12,000 1/3 2/7 60,000 (4% of units started in process) _(25% of normal spoilage) 1,000 500 P 456,720 P 343,800 Materials P 216,000 Conversion costs P 156,000 P 449,160 Current costs: Transferred in Materials P - P3,168,000 P 2 P1,344,000 P2,052,000 Conversion costs P4,942,080

Nico Manufacturing Company applies process costing in the manufacture of its best-seller product, “brilliant Manufacturing starts in Department 1 where all materials are added at the start of the process. The good units an then transferred to Department 2 where all the incremental materials needed for its completion are added after fina inspection. In Department 1, units are inspected at the 100% stage of production while in Department 2, inspectio takes place when the units are 90% completed. Department 1 uses FIFO costing while Department 2 uses th weighted average costing. The production data for the month of February show the following: Department 1 Department 2 UNITS Units in process, February 1, 2014 Work completed Units in process, February 28 Work to be completed Started in process during February Normal spoilage Abnormal spoilage Work in Process, February 1: Transferred in 8,000 4,000 4/5 7,000 1/5 12,000 1/3 2/7 60,000 (4% of units started in process) _(25% of normal spoilage) 1,000 500 P 456,720 P 343,800 Materials P 216,000 Conversion costs P 156,000 P 449,160 Current costs: Transferred in Materials P - P3,168,000 P 2 P1,344,000 P2,052,000 Conversion costs P4,942,080

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter6: Process Costing

Section: Chapter Questions

Problem 38P: Healthway uses a process-costing system to compute the unit costs of the minerals that it produces....

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Benson Pharmaceuticals uses a process-costing system to compute the unit costs of the over-the-counter cold remedies that it produces. It has three departments: mixing, encapsulating, and bottling. In mixing, the ingredients for the cold capsules are measured, sifted, and blended (with materials assumed to be uniformly added throughout the process). The mix is transferred out in gallon containers. The encapsulating department takes the powdered mix and places it in capsules (which are necessarily added at the beginning of the process). One gallon of powdered mix converts into 1,500 capsules. After the capsules are filled and polished, they are transferred to bottling, where they are placed in bottles that are then affixed with a safety seal, lid, and label. Each bottle receives 50 capsules. During March, the following results are available for the first two departments: Overhead in both departments is applied as a percentage of direct labor costs. In the mixing department, overhead is 200% of direct labor. In the encapsulating department, the overhead rate is 150% of direct labor. Required: 1. Prepare a production report for the mixing department using the weighted average method. Follow the five steps outlined in the chapter. (Note: Round to two decimal places for the unit cost.) 2. Prepare a production report for the encapsulating department using the weighted average method. Follow the five steps outlined in the chapter. (Note: Round to four decimal places for the unit cost.) 3. CONCEPTUAL CONNECTION Explain why the weighted average method is easier to use than FIFO. Explain when weighted average will give about the same results as FIFO.
SENYORA Manufacturing Company applies process costing in the manufacture of its sole product, "SLIMMERS™ Manufacturing starts in Department 1 where materials are all added at the start of processing. The good units are then transferred to Department 2 where all the incremental materials needed for its completion are added after final inspection. o In Department 1. units are inspected at the end of processing while in Department 2. inspection takes place when the units are 90% completed. o Department 1 uses FIFO costing while Department 2 uses the weighted average costing The production data for the month of August show the following Department 1 UNITS Department 2 Beginning work in process, August 1 Work to be done Ending work in process, August 31 Work completed Started in process during August Normal spoilage Abnormal spoilage COST Work in Process, August 1: Transferred in Materials Conversion costs Current costs: Transferred in Materials Conversion costs 20,000 80% 30,000 2/3…
Glenda Manufacturing Company applies process costing in the manufacture of its sole product, "Pharmanex"Manufacturing starts in Department 1 where materials are all added at the start of processing. The good units are then transferred to Department 2 where all the incremental materials needed for its completion are added after final inspection.In Department 1. units are inspected at the end of processing while in Department 2, inspection takes place when the units are 90% completed.Department 1 uses FIFO costing while Department 2 uses the weighted average costing.The production data for the month of August show the following: Department 1Department 2 UNITS Beginning work in process, August 120,00010,000 Work to be done80%20% Ending work in process, August 3130,00017,500 Work completed2/75/7 Started in process during August150,000 Normal spoilage(4% of units started in process)2,500 Abnormal spoilage(1/4 of normal spoilage)1,250 COST Work in Process, August 1: Transferred…
Glenda Manufacturing Company applies process costing in the manufacture of its sole product, "Pharmanex". Manufacturing starts in Department 1 where materials are all added at the start of the processing. The good units are then transferred to Department 2 where all the incremental materials needed for its completion are added after final inspection. In Department I, units are inspected at the end of the processing while in Department 2, inspection takes place when the units are 90% completed. Department 1 uses FIFO costing while Department 2 uses weighted average costing. The production data for the month of August show the following: Department 1 Department 2 UNITS Beginning Work in Process, Aug 20,000 10,000 1 Work to be done 80% 20% Ending Work in Process, Aug 31 Work Completed Started in Process during August 30,000 17,500 2/3 5/7 150,000 Normal Spoilage 4% of units started in 2,500 process Abnormal Spoilage 4 of normal spoilage 1,250 COT Work in Process, Aug 1: Transferred In…
What is the total costs transferred to Department 2? What is the total costs transferred to the Storeroom?
Total costs transferred to the Storeroom is __________.
1.) Total costs transferred to the Storeroom 2.) Total costs transferred to Department 2
Question: Total costs transferred to Department 2?
Please help me to solve this problem
Muskoge Company uses a process-costing system. The company manufactures a product that isprocessed in two departments: Molding and Assembly. In the Molding Department, directmaterials are added at the beginning of the process; in the Assembly Department, additionaldirect materials are added at the end of the process. In both departments, conversion costs areincurred uniformly throughout the process. As work is completed, it is transferred out. Thefollowing table summarizes the production activity and costs for February: Molding AssemblyBeginning inventories: Physical units 10,000 8,000 Costs: Transferred in — $ 45,400 Direct materials $22,000 — Conversion costs $13,800 $ 16,700Current production: Units started 25,000 ? Units transferred out 30,000 35,000 Costs: Transferred in — ? Direct materials $ 56,250 $ 40,250 Conversion costs $103,500 $142,845 Percentage of completion: Beginning inventory 40% 55% Ending inventory 80 50Required:3. Using the FIFO method, prepare the following for…
d MediSecure, Incorporated, uses the FIFO method in its process costing system. It produces clear plastic containers for pharmacies in a process that starts in the Molding Department. Data concerning that department's operations in the most recent period appear below: Beginning work in process Units in process Completion with respect to materials Completion with respect to conversion Units started into production during the month Units completed and transferred out Ending work in process! Unita in process Completion with respect to materials Completion with respect to conversion Equivalent units of production 500 Materials Conversion 80% 40% 153,600 153,700 Required: Compute the Molding Department's equivalent units of production for materials and conversion for the period. 400 75% 20%
Total costs transferred to the Storeroom