Spartan Computer Systems, Inc., manufactures printers. Materials are added at the beginning of theproduction process. In April, Spartans started 14,500 printers. Of these, 12,350 were completed andtransferred to the next department, 1,480 were spoiled (as anticipated) and 670 were unexpectedly spoiled.Spoilage is not detected until the process is complete. There was no beginning or ending work in processinventory. Direct materials of $320,000 were used during the month.The Materials Rate per Equivalent is [Select]How much of the materials costs will be transferred to the next department? [Select]How much of the materials costs will be written off as "Loss from Abnormal Spoilage"?[Select]

Step 1: To Calculate the materials rate per equivalent, equivalent units of production is to be…

Answered: Spartan Computer Systems, Inc.,…

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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ChemKill Manufacturing produces a chemical pesticide and uses process costing. There are three processing departments—Mixing, Refining, and Packaging. On January 1, the first department—Mixing—had a zero beginning balance. During January, 44,000 gallons of chemicals were started into production. During the month, 34,000 gallons were completed, and 10,000 remained in process, partially completed. In the Mixing Department, all direct materials are added at the beginning of the production process, and conversion costs are applied evenly throughout the process. During January, the Mixing Department incurred $51,000 in direct materials costs and $210,200 in conversion costs. At the end of the month, the ending inventory in the Mixing Department was 60% complete with respect to conversion costs. The weighted−average method is used. The total cost of the chemical pesticide in ending inventory was ________. (Round any intermediate calculations two decimal places, and your…
Smith Electronic Company’s chip-mounting production department had 300 units of unfinished product, each 50% completed on September 30. During October of the same year, this department put another 900 units into production and completed 1,000 units and transferred them to the next production department. At the end of October, 200 units of unfinished product, 70% completed, were recorded in the ending Work-in-Process Inventory. Smith Electronic introduces all direct materials when the production process is 50% complete. Direct labor and factory overhead (i.e., conversion) costs are added uniformly throughout the process. Following is a summary of production costs incurred during October: Direct Materials Conversion Costs Beginning work-in-process $ 3,712 Costs added in October $ 9,900 6,400 Total costs $ 9,900 $ 10,112 Required: 1. Calculate each of the following amounts using weighted-average process costing:a. Equivalent units of direct materials and…
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Dream Makers is a small manufacturer of gold and platinum jewelry. It uses a job costing system that applies overhead on the basis of direct labor hours. Budgeted factory overhead for the year was $476,100, and management budgeted 34,500 direct labor-hours. The company had no Materials, Work-in-Process, or Finished Goods Inventory at the beginning of April. These transactions were recorded during April: April insurance cost for the manufacturing property and equipment was $1,900. The premium had been paid in January. Recorded $1,095 depreciation on an administrative asset. Purchased 21 pounds of high-grade polishing materials at $16 per pound (indirect materials). The purchase was on credit. Paid factory utility bill, $6,590, in cash. Incurred 4,000 hours and paid payroll costs of $160,000. Of this amount, 1,000 hours and $20,000 were indirect labor costs. Incurred and paid other factory overhead costs, $6,330. Purchased $25,500 of materials. Direct materials included unpolished…
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Timing Technology, Incorporated, manufactures timing devices. During 20x1, 2,700,000 units were completed and transferred to finished-goods inventory. On December 31, 20x1, there were 440,000 units in work in process. These units were 45 percent complete as to conversion and 100 percent complete as to direct material. Finished-goods inventory consisted of 1,134,000 units. Materials are added to production at the beginning of the manufacturing process, and overhead is applied to each product at the rate of 100 percent of direct-labor costs. There was no finished-goods inventory on January 1, 20x1. A review of the inventory cost records disclosed the following information: Units Direct Material (Costs) Direct Labor (Costs) Work in process, January 1, 20x1 (82% complete as to conversion) 430,000 $ 334,000 $ 327,400 Units started in production 2,710,000 Direct-material costs $ 9,086,000 Direct-labor costs $ 7,207,400…
Smith Electronic Company's chip-mounting production department had 300 units of unfinished product, each 50% completed on September 30. During October of the same year, this department put another 900 units into production and completed 1,000 units and transferred them to the next production department. At the end of October, 200 units of unfinished product, 70% completed, were recorded in the ending Work-in-Process Inventory. Smith Electronic introduces all direct materials when the production process is 50% complete. Direct labor and factory overhead (i.e., conversion) costs are added uniformly throughout the process. Following is a summary of production costs incurred during October: Beginning work-in-process Costs added in October Total costs Direct Materials $ 8,200 $ 8,200 Required: 1. Calculate each of the following amounts using weighted-average process costing: a. Equivalent units of direct materials and conversion. b. Equivalent unit costs of direct materials and conversion.…

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