Homework Help is Here – Start Your Trial Now!
Business
Accounting
Prepare a production cost report for Tillman using the weighted-average method. (Hint: You will need to calculate equivalent units for three categories: materials, labor, and overhead.) Note: Round "Cost per equivalent unit" to 2 decimal places. Round your final answers to nearest whole number. Flow of Production Units Units to be accounted for: Beginning WIP inventory TILLMAN CORPORATION Production Cost Report-Weighted-Average Physical Units Total Costs Materials Labor Overhead Units started this period Total units to be accounted for 32,000 118,000 150,000 Units accounted for: Units completed and transferred out: From beginning inventory 32,000 Started and completed currently 64,500 Total transferred out 96,500 96,500 96,500 96,500 Units in ending WIP inventory 53,500 53,500 18,725 18,725 Total units accounted for 150,000 150,000 115,225 115,225 Costs to be accounted for: Costs in beginning WIP inventory Current period costs Total costs to be accounted for $ 150,076 $ 118,840 $ 16,440 $ 14,796 958,100 $ 1,108,176 $ 537,060 655,900 $ 221,600 238,040 $ 199,440 214,236 Cost per equivalent unit: Materials Labor Overhead Costs accounted for: $ 4.37 $ 2.07 $ 1.86 Costs assigned to units transferred out: Materials $ 421,962 $ 421,962 Labor 199,955 $ 199,357 Overhead 179,790 $ 179,421 Total costs of units transferred out $ 801,707 Costs assigned to ending WIP inventory: Materials Labor Overhead Total ending WIP inventory Total costs accounted for 233,938 233,938 38,765 38,765 34,858 34,858 $ 307,561 $ 1,109,268 $ 655,900 $ 238,122 $ 214,279 Show the journal entry required to correct the difference between the unaudited records and actual ending balances of Work- in-Process Inventory and Finished Goods Inventory. Debit or credit Cost of Goods Sold for any difference. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. No General Journal A 1 Cost of goods sold Finished goods Work in process Debit Credit 4,017 X 40,449 44,466 X

Prepare a production cost report for Tillman using the weighted-average method. (Hint: You will need to calculate equivalent units for three categories: materials, labor, and overhead.) Note: Round "Cost per equivalent unit" to 2 decimal places. Round your final answers to nearest whole number. Flow of Production Units Units to be accounted for: Beginning WIP inventory TILLMAN CORPORATION Production Cost Report-Weighted-Average Physical Units Total Costs Materials Labor Overhead Units started this period Total units to be accounted for 32,000 118,000 150,000 Units accounted for: Units completed and transferred out: From beginning inventory 32,000 Started and completed currently 64,500 Total transferred out 96,500 96,500 96,500 96,500 Units in ending WIP inventory 53,500 53,500 18,725 18,725 Total units accounted for 150,000 150,000 115,225 115,225 Costs to be accounted for: Costs in beginning WIP inventory Current period costs Total costs to be accounted for $ 150,076 $ 118,840 $ 16,440 $ 14,796 958,100 $ 1,108,176 $ 537,060 655,900 $ 221,600 238,040 $ 199,440 214,236 Cost per equivalent unit: Materials Labor Overhead Costs accounted for: $ 4.37 $ 2.07 $ 1.86 Costs assigned to units transferred out: Materials $ 421,962 $ 421,962 Labor 199,955 $ 199,357 Overhead 179,790 $ 179,421 Total costs of units transferred out $ 801,707 Costs assigned to ending WIP inventory: Materials Labor Overhead Total ending WIP inventory Total costs accounted for 233,938 233,938 38,765 38,765 34,858 34,858 $ 307,561 $ 1,109,268 $ 655,900 $ 238,122 $ 214,279 Show the journal entry required to correct the difference between the unaudited records and actual ending balances of Work- in-Process Inventory and Finished Goods Inventory. Debit or credit Cost of Goods Sold for any difference. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. No General Journal A 1 Cost of goods sold Finished goods Work in process Debit Credit 4,017 X 40,449 44,466 X

Principles of Accounting Volume 1
Principles of Accounting Volume 1
19th Edition
ISBN:9781947172685
Author:OpenStax
Publisher:OpenStax
Chapter10: Inventory
Section: Chapter Questions
Problem 11EA: Prepare journal entries to record the following transactions, assuming perpetual inventory updating...
See similar textbooks
icon
Related questions
Question

The records of Tillman Corporation's initial and unaudited accounts show the following ending inventory balances, which must be adjusted to actual costs:

  Units Unaudited Costs
Work-in-process inventory 53,500 $ 352,880
Finished goods inventory 20,500 129,650

As the auditor, you have learned the following information. Ending work-in-process inventory is 35 percent complete with respect to conversion costs. Materials are added at the beginning of the manufacturing process, and overhead is applied at the rate of 90 percent of the direct labor costs. There was no finished goods inventory at the start of the period. The following additional information is also available:

  Units Costs
Direct Materials Direct Labor
Beginning inventory (25% complete as to labor) 32,000 $ 118,840 $ 16,440
Units started 118,000    
Current costs   537,060 221,600
Units completed and transferred to finished goods inventory 96,500    

Required:

  1. Prepare a production cost report for Tillman using the weighted-average method.
  2. Show the journal entry required to correct the difference between the unaudited records and actual ending balances of Work-in-Process Inventory and Finished Goods Inventory. Debit or credit Cost of Goods Sold for any difference.
  3. If the adjustment in requirement (b) is not made, will the company’s income and inventories be overstated or understated?
Prepare a production cost report for Tillman using the weighted-average method. (Hint: You will need to calculate equivalent units for three categories: materials, labor, and overhead.) Note: Round "Cost per equivalent unit" to 2 decimal places. Round your final answers to nearest whole number. Flow of Production Units Units to be accounted for: Beginning WIP inventory TILLMAN CORPORATION Production Cost Report-Weighted-Average Physical Units Total Costs Materials Labor Overhead Units started this period Total units to be accounted for 32,000 118,000 150,000 Units accounted for: Units completed and transferred out: From beginning inventory 32,000 Started and completed currently 64,500 Total transferred out 96,500 96,500 96,500 96,500 Units in ending WIP inventory 53,500 53,500 18,725 18,725 Total units accounted for 150,000 150,000 115,225 115,225 Costs to be accounted for: Costs in beginning WIP inventory Current period costs Total costs to be accounted for $ 150,076 $ 118,840 $ 16,440 $ 14,796 958,100 $ 1,108,176 $ 537,060 655,900 $ 221,600 238,040 $ 199,440 214,236 Cost per equivalent unit: Materials Labor Overhead Costs accounted for: $ 4.37 $ 2.07 $ 1.86 Costs assigned to units transferred out: Materials $ 421,962 $ 421,962 Labor 199,955 $ 199,357 Overhead 179,790 $ 179,421 Total costs of units transferred out $ 801,707 Costs assigned to ending WIP inventory: Materials Labor Overhead Total ending WIP inventory Total costs accounted for 233,938 233,938 38,765 38,765 34,858 34,858 $ 307,561 $ 1,109,268 $ 655,900 $ 238,122 $ 214,279
Transcribed Image Text:Prepare a production cost report for Tillman using the weighted-average method. (Hint: You will need to calculate equivalent units for three categories: materials, labor, and overhead.) Note: Round "Cost per equivalent unit" to 2 decimal places. Round your final answers to nearest whole number. Flow of Production Units Units to be accounted for: Beginning WIP inventory TILLMAN CORPORATION Production Cost Report-Weighted-Average Physical Units Total Costs Materials Labor Overhead Units started this period Total units to be accounted for 32,000 118,000 150,000 Units accounted for: Units completed and transferred out: From beginning inventory 32,000 Started and completed currently 64,500 Total transferred out 96,500 96,500 96,500 96,500 Units in ending WIP inventory 53,500 53,500 18,725 18,725 Total units accounted for 150,000 150,000 115,225 115,225 Costs to be accounted for: Costs in beginning WIP inventory Current period costs Total costs to be accounted for $ 150,076 $ 118,840 $ 16,440 $ 14,796 958,100 $ 1,108,176 $ 537,060 655,900 $ 221,600 238,040 $ 199,440 214,236 Cost per equivalent unit: Materials Labor Overhead Costs accounted for: $ 4.37 $ 2.07 $ 1.86 Costs assigned to units transferred out: Materials $ 421,962 $ 421,962 Labor 199,955 $ 199,357 Overhead 179,790 $ 179,421 Total costs of units transferred out $ 801,707 Costs assigned to ending WIP inventory: Materials Labor Overhead Total ending WIP inventory Total costs accounted for 233,938 233,938 38,765 38,765 34,858 34,858 $ 307,561 $ 1,109,268 $ 655,900 $ 238,122 $ 214,279
Show the journal entry required to correct the difference between the unaudited records and actual ending balances of Work- in-Process Inventory and Finished Goods Inventory. Debit or credit Cost of Goods Sold for any difference. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. No General Journal A 1 Cost of goods sold Finished goods Work in process Debit Credit 4,017 X 40,449 44,466 X
Transcribed Image Text:Show the journal entry required to correct the difference between the unaudited records and actual ending balances of Work- in-Process Inventory and Finished Goods Inventory. Debit or credit Cost of Goods Sold for any difference. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. No General Journal A 1 Cost of goods sold Finished goods Work in process Debit Credit 4,017 X 40,449 44,466 X
AI-Generated Solution
AI-generated content may present inaccurate or offensive content that does not represent bartleby’s views.
steps

Unlock instant AI solutions

Tap the button
to generate a solution

SEE SOLUTION
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
Principles of Accounting Volume 1
Principles of Accounting Volume 1
Accounting
ISBN:
9781947172685
Author:
OpenStax
Publisher:
OpenStax College
College Accounting, Chapters 1-27 (New in Account…
College Accounting, Chapters 1-27 (New in Account…
Accounting
ISBN:
9781305666160
Author:
James A. Heintz, Robert W. Parry
Publisher:
Cengage Learning
College Accounting (Book Only): A Career Approach
College Accounting (Book Only): A Career Approach
Accounting
ISBN:
9781337280570
Author:
Scott, Cathy J.
Publisher:
South-Western College Pub
Excel Applications for Accounting Principles
Excel Applications for Accounting Principles
Accounting
ISBN:
9781111581565
Author:
Gaylord N. Smith
Publisher:
Cengage Learning
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Cornerstones of Financial Accounting
Cornerstones of Financial Accounting
Accounting
ISBN:
9781337690881
Author:
Jay Rich, Jeff Jones
Publisher:
Cengage Learning
SEE MORE TEXTBOOKS