Prin 1: More Info The process-costing system at Hoffman Company has a single direct-cost category (direct materials) and a single indirect-cost categor (conversion costs). Direct materials are added at the beginning of the process. Conversion costs are added evenly during the process. When the assembly department finishes work on each car seat, it is immediately transferred to testing. Hoffman Company uses the weighted-average method of process costing. 2: Data Table Physical Units Direct Conversion (Car Seats) Materials Costs Work in process, October 1ª 4,000 $1,248,000 $241,650 Started during October 2017 22,500 Completed during October 2017 26,000 500 Work in process, October 31° Total costs added during October 2017 $4,635,000 S2,575, 125 a Degree of completion: direct materials, ?%; conversion costs, 45%. bDegree of completion: direct materials, ?%; conversion costs, 65%. 3: Total costs to account for Total Direct Conversion Production Costs Materials Costs Work in process, beginning 1.489,650 S 1.248,000 S 241,650 7.210,125 4,635,000 2,575,125 Costs added in current period 8,699,775 S 5,883,000 S 2,816,775 Total costs to account for 4: Total costs accounted for Total Direct Conversion Production Costs Materials Costs Completed and transferred out 8.554,000 S 5,772,000 S 2,782,000 145,775 111.000 34,775 Work in process, ending 9 600 775 S 5.002 000 S 2016 775
Prin 1: More Info The process-costing system at Hoffman Company has a single direct-cost category (direct materials) and a single indirect-cost categor (conversion costs). Direct materials are added at the beginning of the process. Conversion costs are added evenly during the process. When the assembly department finishes work on each car seat, it is immediately transferred to testing. Hoffman Company uses the weighted-average method of process costing. 2: Data Table Physical Units Direct Conversion (Car Seats) Materials Costs Work in process, October 1ª 4,000 $1,248,000 $241,650 Started during October 2017 22,500 Completed during October 2017 26,000 500 Work in process, October 31° Total costs added during October 2017 $4,635,000 S2,575, 125 a Degree of completion: direct materials, ?%; conversion costs, 45%. bDegree of completion: direct materials, ?%; conversion costs, 65%. 3: Total costs to account for Total Direct Conversion Production Costs Materials Costs Work in process, beginning 1.489,650 S 1.248,000 S 241,650 7.210,125 4,635,000 2,575,125 Costs added in current period 8,699,775 S 5,883,000 S 2,816,775 Total costs to account for 4: Total costs accounted for Total Direct Conversion Production Costs Materials Costs Completed and transferred out 8.554,000 S 5,772,000 S 2,782,000 145,775 111.000 34,775 Work in process, ending 9 600 775 S 5.002 000 S 2016 775
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Concept explainers
Process Costing
Process costing is a sort of operation costing which is employed to determine the value of a product at each process or stage of producing process, applicable where goods produced from a series of continuous operations or procedure.
Job Costing
Job costing is adhesive costs of each and every job involved in the production processes. It is an accounting measure. It is a method which determines the cost of specific jobs, which are performed according to the consumer’s specifications. Job costing is possible only in businesses where the production is done as per the customer’s requirement. For example, some customers order to manufacture furniture as per their needs.
ABC Costing
Cost Accounting is a form of managerial accounting that helps the company in assessing the total variable cost so as to compute the cost of production. Cost accounting is generally used by the management so as to ensure better decision-making. In comparison to financial accounting, cost accounting has to follow a set standard ad can be used flexibly by the management as per their needs. The types of Cost Accounting include – Lean Accounting, Standard Costing, Marginal Costing and Activity Based Costing.
Topic Video
Question
Transcribed Image Text:Hoffman Company manufactures car seats in its Boise plant. Each
car seat passes through the assembly department and the testing
department. This problem focuses on the assembly department.
(Click the icon to view information about Hoffman Company's
process-costing system.)
Data for the assembly department for October 2017 are as follows:
2(Click the icon to view the assembly department data.)
3(Click the icon to view the total costs to account for.)
*(Click the icon to view the total costs accounted for.)
1
Read the requirement.
Prepare a set of summarized journal entries for all October 2017 transactions affecting Work in Process-Assembly. (Record debits first,
then credits. Exclude explanations from any journal entries.)
Begin by recording the purchase and use of direct materials.
Journal Entry
Accounts
Debit
Credit
JE 1
(1)
(2)
(3)
(4)
Record the conversion costs.
Journal Entry
Accounts
Debit
Credit
JE 2
(5)
(6)
(7)
(8)
Prepare a journal entry to transfer out the cost of goods completed.
Journal Entry
Accounts
Debit
Credit
JE 3
(9)
(10)
(11)
(12)
Set up a T-account for Work in Process-Assembly and post your entries to it.
Work in Process-Assembly
Bal.
Bl.
(13)
(14)
(15)
(16)
(17)
(18)
Bl.
Bl.
Transcribed Image Text:Print
1: More Info
The process-costing system at Hoffman Company has a single direct-cost category (direct materials) and a single indirect-cost category
(conversion costs). Direct materials are added at the beginning of the process. Conversion costs are added evenly during the process.
When the assembly department finishes work on each car seat, it is immediately transferred to testing. Hoffman Company uses the
weighted-average method of process costing.
2: Data Table
Physical Units
Direct
Conversion
(Car Seats)
Materials
Costs
Work in process, October 1
4,000
$1,248,000
$241,650
Started during October 2017
22,500
Completed during October 2017
26,000
Work in process. October 31°
500
Total costs added during October 2017
$4,635,000 S2,575,125
a Degree of completion: direct materials, ?%; conversion costs, 45%.
Degree of completion: direct materials, ?%; conversion costs, 65%
3: Total costs to account for
Total
Direct
Conversion
Production Costs
Materials
Costs
Work in process, beginning
S
1.489,650 S
1,248,000 S
241,650
Costs added in current period
7.210,125
4,635,000
2.575,125
S
8,699,775 S
5,883,000 S
2.816,775
Total costs to account for
4: Total costs accounted for
Total
Direct
Conversion
Production Costs
Materials
Costs
Completed and transferred out
8.554,000 S
5,772,000 S 2,782,000
145.775
111,000
34.775
Work in process, ending
8,699,775 S 5,883,000 S
2,816,775
Total costs accounted for
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