Randall Inc. manufactures pocket protectors and uses the FIFO method of process costing. Direct materialsare added at the beginning of the production process. Conversion costs are incurred evenly throughoutproduction. Inspection takes place at the end of the production process. After inspection, some units arespoiled due to defects. Spoiled units generally constitute 1% of the good units transferred out (this is normalspoilage). Assume all spoilage is from the current month's production. Data provided for February is as follows:Units: WIP, beginning inventory (70% complete) 84,300 WIP, ending inventory (40% complete) 75,400 Startedin February 354,500 Good units completed and transferred out 357,000 Costs: WIP, beginning inventory:Direct material cost $ 36,950 Conversion costs $ 15,730 Costs added: Direct material costs added $141,800Conversion costs added $100,365 How many units will be included in abnormal spoilage for February? Whatcost would be associated with normal and abnormal spoilage, respectively, in February? What costs areallocated to the good units transferred out during February?

Given:Beginning WIP: 84,300 units (70% complete for conversion)Ending WIP: 75,400 units (40%…

Answered: Randall Inc. manufactures pocket…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

The Blending Department for Westiana Paints started October with 1,200 gallons in process and started in production 9,700 gallons. During the month, 7,200 gallons were completed and transferred to the next department. Ending work-in-process was 3,700 gallons (100% comple with respect to direct materials and 30% complete for conversion costs). The department uses the weighted-average method. The Blending Department incurred the following costs: (Click the icon to view the costs.) 7. Prepare a production cost report for the Blending Department for the month of October. (Enter cost per equivalent units to the nearest cent. Abbreviations: EUP = Equivalent Units of Production.) UNITS Units to account for Total units to account for Units accounted for Total units accounted for COST: Costs to account for: Total costs to account for Cost per equivalent unit Costs accounted for: Total costs accounted for Westiana Paints Production Cost Report - Blending Department Month Ended October 31…
The RYX Manufacturing Company has a cycle of 1.5 days, 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, their conversion cost components are estimated, and inventory account balances are adjusted. Raw material cost is backflushed from RIP to Finished Goods. The following information is for June:Beginning balance of RIP account, including P1,200 of conversion cost P11,700Beginning balance of Finished Goods account, including P4,000 of conversion cost P12,000Raw materials received on credit P222,000Ending RIP inventory per physical count including P1,800 conversion cost estimate P12,800Ending Finished Goods inventory per physical count, including P3,500 conversion cost estimate P9,500Direct Labor: P80,000; Factory Overhead: P70,000 How much is the amount to be backflushed from Finished Goods to Cost of Goods Sold? Group of answer choices 221,500 221,400 222,000 220,900
Velasquez Company has a cycle time of 4 days, uses Raw and In Process account (RIP) and expenses all conversion costs to Cost of Goods Sold. At the end of each month, all inventories are counted; their conversion components are estimated and inventory account balances are adjusted accordingly. Raw materials is backflushed from RIP to Finished Goods. The following information is for the month of October: RIP beginning, including P10,000 of conversion cost, P35,000; FG beginning, including P6,800 of conversion cost; P30,000; Raw materials purchased on account, P225,000; RIP end, including P13,700 of conversion cost, P23,500; FG end, including P11,100 of conversion cost, P14,800. Direct labor P175,000; Factory overhead P220,000. What is the amount of conversion costs in the cost of goods sold account? a.P646,700 b.P395,000 c.P387,000 d.P259,700
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
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…
D1.
Please help me. Thankyou.
Cranbrook Textiles Company makes silk banners and uses the weighted-average method of process costing. Direct materials are added at the beginning of the process, and conversion costs are added evenly during the process. Spoilage is detected upon inspection at the completion of the process. Spoiled units are disposed of at zero net disposal value. (Click the icon to view the process costing data.) Determine the equivalent units of work done in July, and calculate the cost of units completed and transferred out (including normal spoilage), the cost of abnormal spoilage, and the cost of units in ending inventory. - X Data table Physical Units Direct Conversion Enter the physical units in first, then calculate the equivalent units. (Banners) Materials Costs 1,300 $195,000 $8,000 Work in process, (July 1)" Started in July 2020 Good units completed and transferred out in July Normal spoilage Abnormal spoilage Physical 37,500 20,500 9,000 Flow of Production Units Work in process beginning…
Goodyear Corporation uses a process cost system in manufacturing its tires for the bicycle industry. Materials are added at the beginning of the process and conversion costs are applied evenly throughout the process. At the beginning of March, the work-in-process is 40% complete and at the end of the month, it is 60% complete. Spoilage is detected at the end of the process. Other data for the month include: Beginning WIP inventory 1,600 units Units started 20,000 units Units placed in finished goods 12,000 units Ending WIP inventory 1,200 units Normal spoilage of units finished 20% Conversion costs P604,800 Cost of direct materials 600,000 Beginning WIP costs Materials 60,000 Conversion 60,480 Use weighted-average method. The total cost transferred out:
Michael Company has a cycle time of 4 days, uses Raw and In Process account (RIP) and expenses all conversion costs to Cost of Goods Sold. At the end of each month, all inventories are counted; their conversion components are estimated and inventory account balances are adjusted accordingly. Raw materials is backflushed from RIP to Finished Goods. The following information is for the month of October: RIP beginning, including $10,000 of conversion cost, $35,000; FG beginning, including $6,800 of conversion cost; $30,000; Raw materials purchased on account, $225,000; RIP end, including $13,700 of conversion cost, $23,500; FG end, including $11,100 of conversion cost, $14,800. Direct labor $175,000; Factory overhead $220,000. What is the amount of materials backflushed from RIP to FG? $240,200 $259,700 $295,700 $220,000
How much is the cost of ending work in process? * IONTBO Company uses the weighted average method of process costing to account for its operations. It adds direct materials at the beginning of the process. Any loss less than 10% of the units started in production is within the tolerance level. Data for the current month are as follows: Beginning work in process (45% complete) Units started in during the month Units transferred to finished goods inventory Ending work in process (15% complete) Lost units 36,000 units 120,000 units 126,000 units 21,600 units ? units Cost of BWIP Current Cost Direct materials Conversion cost P101,840 P110,820 P400,000 P600,000 a. 192,240 b. 91,260 O c. 24,533 d. 0
7. Panay Company has a cycle of 3 days, uses a Raw and In Process Account (RIP) and charges all conversion costs to cost of goods sold. At the end of each month, all inventories are counted, conversion costs components are estimated and inventory account balances are adjusted. Raw material cost is backflushed from Raw and in Process (RIP) Account to finished goods. The following information is provided for the month of June: Beginning Balance of RIP account, including Php 1,000 conversion cost 5,000.00; Beginning Balance of Finished goods account including Php 6,000.00 conversion cost Php 10,000.00; Raw materials received on credit Php 400,000.00; Direct Labor cost Php 300,000.00; Factory overhead applied Php 500,000.00; Ending RIP inventory per physical count, including Php 7,000.00 conversion cost Php 20,000.00; Ending Finished Goods inventory per physical count, including Php 4,000.00 conversion cost Php 6,000.00. What is the amount of conversion cost included cost of goods sold in…

Recommended textbooks for you

FINANCIAL ACCOUNTING

Accounting

ISBN:

9781259964947

Author:

Libby

Publisher:

MCG

Accounting

ISBN:

9781337272094

Author:

WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.

Publisher:

Cengage Learning,

Accounting Information Systems

Accounting

ISBN:

9781337619202

Author:

Hall, James A.

Publisher:

Cengage Learning,

FINANCIAL ACCOUNTING

Accounting

ISBN:

9781259964947

Author:

Libby

Publisher:

MCG

Accounting

ISBN:

9781337272094

Author:

WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.

Publisher:

Cengage Learning,

Accounting Information Systems

Accounting

ISBN:

9781337619202

Author:

Hall, James A.

Publisher:

Cengage Learning,

Horngren's Cost Accounting: A Managerial Emphasis…

Accounting

ISBN:

9780134475585

Author:

Srikant M. Datar, Madhav V. Rajan

Publisher:

PEARSON

Intermediate Accounting

Accounting

ISBN:

9781259722660

Author:

J. David Spiceland, Mark W. Nelson, Wayne M Thomas

Publisher:

McGraw-Hill Education

Financial and Managerial Accounting

Accounting

ISBN:

9781259726705

Author:

John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles

Publisher:

McGraw-Hill Education

SEE MORE TEXTBOOKS