Required:1. Assume there was no beginning inventory of any kind on January 1, 2017. During January,5,000 cameras were placed into production and all 5,000 were fully completed at the endof the month. What is the unit cost of an assembled camera in January?2. Assume that during February 5,000 cameras are placed into production. Further assume thesame total assembly costs for January are also incurred in February, but only 4,000 camerasare fully completed at the end of the month. All direct materials have been added to theremaining 1,000 cameras. However, on average, these remaining 1,000 cameras are only60% complete as to conversion costs. (a) What are the equivalent units for direct materialsand conversion costs and their respective costs per equivalent unit for February? (b) What isthe unit cost of an assembled camera in February 2017?3. Explain the difference in vour answers to requirements 1 and 2.

The cost of direct materials is the cost of direct materials that are easily identifiable with the…

Answered: Required: 1. Assume there was no…

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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During the current year, Dale Corporation sold a segment of its business at a gain of $315,000.Until it was sold, the segment had a current period operating loss of $112,500. The company had$1,275,000 from continuing operations for the current year.Prepare the lower part of the income statement, beginning with the $1,275,000 income fromcontinuing operations. Follow tax allocation procedures, assuming that all changes in incomeare subject to a 20% income tax rate. Disregard earnings per share disclosures. (Round all calculations to nearest dollar amount.)
Compute the total cost of the units-in-process inventory at the end of the period. JKL FABRICATIONS Inc. manufactures frames to bicycles. Each frame passes through three processes: CUTTING, WELDING & PAINTING. In July, the PAINTING Department reportedthe following data. . Beginning WIP consisted of 40,500 units, 95% complete with respect to direct labor and overhead. Costs in the beginning inventory included prime cost, P15,000; applied overhead P12,110 and transferred-in, P31,500. . Cost added to production during the month were direct materials, P72,900; direct labor P64,880; transferred- in P102,060. Overhead was assigned using the following information: Activity Rate Actual Driver Usage Inspection P7.50 per inspection hour 3,000 inspection hours Maintenance P 2 per maintenance hour 1,200 maintenance hours Receiving P10 per receiving…
8.AA Inc. transferred 5,500 units to finished good inventory during June. On June 1, the company had 300 units on hand (40% complete as to both materials and conversion costs). On June 30, the company had 800 units (10% complete as to material and 20% complete as to conversion costs). Using FIFO Method, what is the equivalent units of production for June conversion costs?
Lansing, Inc. provides the following information for one of its department’s operations for June (no new material is added in Department T). WIP inventory—Department T Beginning inventory (8,300 units, 20% complete with respect to Department T costs) Transferred-in costs (from Department S) $ 37,100 Department T conversion costs 9,842 Current work (19,100 units started) Prior department costs 91,680 Department T costs 183,150 The ending inventory has 3,300 units, which are 60 percent complete with respect to Department T costs and 100 percent complete for prior department costs. Required: Complete the production cost report using FIFO. (Round "Cost per equivalent unit" to 2 decimal places.)
shobha
Yuan Company has a cycle time of 3 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 July: RIP beginning, including P20,560 of conversion cost, P42,600; FG beginning, including P22,000 of conversion cost; P45,000; Raw materials purchased on account, P356,000; RIP end, including P15,500 of conversion cost, P22,500; FG end, including P11,600 of conversion cost, P16,000. Direct labor P350,000; Factory overhead P196,150. What is the total amount of cost of goods sold? a.P935,790 b.P951,250 c.P989,750 d.P902,150
Lansing, Inc. provides the following information for one of its department’s operations for June (no new material is added in Department T). WIP inventory—Department T Beginning inventory (9,200 units, 20% complete with respect to Department T costs) Transferred-in costs (from Department S) $ 49,430 Department T conversion costs 13,760 Current work (20,900 units started) Prior department costs 119,130 Department T costs 235,440 The ending inventory has 4,200 units, which are 50 percent complete with respect to Department T costs and 100 percent complete for prior department costs. Required: Complete the production cost report using FIFO.
Complete the production cost report using FIFO.
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In June, one of the processing departments at Furbush Corporation had ending work in process inventory of $12,000. During the month, $404,000 of costs were added to production and the cost of units transferred out from the department was $426,000. In the department's cost reconciliation report for June, the total cost accounted for would be: Multiple Choice $46,000 $842,000 $876,000 $438,000
The GH company uses a cost accounting system by process and presents the following information for the month of July 2017: Its products are electronic components, manufactured in series for which its Elaboration is paid for by work cards. 37,000 units were started, the Material requisitions were $ 83,000, conversion costs were $ 98,000 and 33,000 units were completed. Starting inventory as of July 1 was 8,500 units with a cost of $ 31,000 of raw material and $ 39,000 conversion costs (100% material advance premium and 80% conversion costs). The ending inventory is 12,500 units, which have 100% raw material and the 40% conversion costs. Based on previous information: a) Prepare the certificates of physical units, that of equivalent production and that of cost allocation. b) Evaluate with the three inventory valuation methods (FIFO, LIFO and CPP) and determine the unit cost of production
Star Plastic company produces plastic cups. table below are the data for April 2019. Star Plastic uses the weighted average method for inventory calculations. raw materials are added at the beginning of the production process while conversion costs are added evenly throughout the process. calculate equivalent units (EU) for DIRECT MATERIALS Physical Units Direct Conversion Materials Costs $ 13,332 Work in process, beginning inventory (April 1) Degree of completion of beginning work in process Started during April Good units completed and transferred out during April Work in process, ending inventory (April 30) Degree of completion of ending work in process Total costs added during April Normal spoilage as a percentage of good units Degree of completion of normal spoilage Degree of completion of abnormal spoilage 2,400 $21,240 100% 50% 12,000 10,800 2,160 100% 75% $97,560 $111,408 10% 100% 100% 100% 100%

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