Questions 6-9 refer to the following information: Break-a-Few Co. makes drinking glasses using FIFO process costing. The following is the conversion cost information for July: Beginning inventory Started into process Transferred out Ending inventory 60 units, 40% complete (total cost $35) 800 units 700 units 40 units, 30% complete Normal spoilage is 10% of good production. Spoilage is detected at the end of the process. The current- period conversion costs are $1.75 per unit. 6. For July, the conversion cost equivalent units are (a) 724 units (b) 748 units (c) 808 units (d) 828 units 7. The conversion costs assigned to the goods transferred to the next department are: (a) $1,218.00 (b) $1,305.50 (c) $1,340.50 (d) $1,428.00 8. The abnormal spoilage expense in July is (b) $17.50 (c) $87.50 (d) $122.50 (a) $0.00

Questions 6-9 refer to the following information: Break-a-Few Co. makes drinking glasses using FIFO process costing. The following is the conversion cost information for July: Beginning inventory Started into process Transferred out Ending inventory 60 units, 40% complete (total cost $35) 800 units 700 units 40 units, 30% complete Normal spoilage is 10% of good production. Spoilage is detected at the end of the process. The current- period conversion costs are $1.75 per unit. 6. For July, the conversion cost equivalent units are (a) 724 units (b) 748 units (c) 808 units (d) 828 units 7. The conversion costs assigned to the goods transferred to the next department are: (a) $1,218.00 (b) $1,305.50 (c) $1,340.50 (d) $1,428.00 8. The abnormal spoilage expense in July is (b) $17.50 (c) $87.50 (d) $122.50 (a) $0.00

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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3. How much is backflushed from RIP to Finished Goods? The Hiei Company has a cycle time of 1.5days, uses a Raw and In Process (RIP) account and charges all conversion costs to cost of goods sold. At the end of each month, all inventories are counted, the conversion costs components are estimated, and inventory balances are adjusted. Raw material costs is backflushed from RIP to Finished Goods. The following information is for August RIP, beginning including P600 of conversion cost P5,500 6,000 Finished goods, beginning including P2,000 of conversion cost Raw materials received 173,000 5,350 RIP, ending per physical count, excluding P850 conversion cost estimate Finished goods, ending per physical count, excluding P1,550 conversion cost estimate 3,350 How much is backflushed from RIP to Finished Goods?
The JG Company uses JIT operating system with backflush costing. During the month of October, direct material costing P100,00 was used for completed work with conversion costs of P500,000. At the end of the month, P100,000 was assigned to work in process inventory account. The ending balance of finished goods inventory was P150,000. Required: a. The cost charged to the company's cost of goods sold b. The ending balance of cost of goods sold
A company has 1,300 units in ending work in process that are 30% complete after transferring out 12,000 units. All materials are added at the beginning of the process. If the cost per unit is $3 for materials and $6 for conversion, what is the cost of units transferred out and in ending work in process inventory using the weighted-average method? Cost of units transferred out $fill in the blank 1 Ending work in process inventory $fill in the blank 2
Cracked Inc. manufactures a single product and uses the FIFO method of process costing. Direct materials are added at the beginning of the production process. Conversion costs are incurred evenly throughout production. Inspection takes place at the end of the production process. After inspection, some units are spoiled due to defects. Spoiled units generally constitute 2% of the good units transferred out (this is normal spoilage). Assume all spoilage is from the current month's production. Data provided for September is as follows: Units: WIP, beginning inventory WIP, ending inventory Started in September Good units completed and transferred out 12,500 5,700 54,000 58,500 Beginning work in process was 40% complete with respect to conversion. Ending work in process was 20% complete with respect to conversion. Costs: WIP, beginning inventory: $ 66,415 $ 37,622 Direct material cost Conversion costs Costs added: $160,920 $119,574 Direct material costs added Conversion costs added 5. How…
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D1.
ect materials are added at the beginning of the process. This period began with 5,000 units in ginning inventory that are 25% complete. What are the equivalent units for beginning work in process der the FIFO method? a. Direct materials 5,000; Conversion costs 3,750 b. Direct materials 0; Conversion costs 3,750 c. Direct materials 5,000; Conversion costs 1,250 d. Direct materials 0; Conversion costs 1,250
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II. Process Costing Our company manufactures Chemical X. Assume the company uses weighted average. Separate direct materials and conversion costs. Chemical X is comprised of two liquids, Liquid A and Liquid B. The formula of Chemical Xis 60% Liquid A, 40% Liquid B. 70% of the mixed liquid is added at the beginning of the process: 30% added at the very end. The average cost of the raw materials is $35 per gallon. At the beginning of the month, there was 1,500 gallons in process, 40% through the process (as to conversion costs). The total costs in beginning WIP is $36,750 for materials and $97,440 for conversion costs. During the month, 15,000 gallons were started. Conversion costs were $455,400 for the month. Compute direct material costs (hint use DM EUP under FIFO). At the end of the month, there were 1,200 gallons in process, 80% through the process. Answer each question separately. DO NOT just complete a table - this will result in a zero! How many units were started AND completed?…
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