Wholesale Selling Price per Pound When Production Is Complete Pounds of Product Parts Breasts $0.55 100 Wings Thighs 0.20 20 0.35 40 Bones 80 0.10 Feathers 10 0.05 Joint cost of production in July 2017 was $50. A special shipment of 40 pounds of breasts and 15 pounds of wings has been destroyed in a fire. Qual- ity Chicken's insurance policy provides reimbursement for the cost of the items destroyed. The insurance company permits Quality Chicken to use a joint-cost-allocation method. The splitoff point is assumed to be at the end of the production process. 1. Compute the cost of the special shipment destroyed using the following: a. Sales value at splitoff method b. Physical-measure method (pounds of finished product) Required 2. What joint-cost-allocation method would you recommend Quality Chicken use? Explain.

Wholesale Selling Price per Pound When Production Is Complete Pounds of Product Parts Breasts $0.55 100 Wings Thighs 0.20 20 0.35 40 Bones 80 0.10 Feathers 10 0.05 Joint cost of production in July 2017 was $50. A special shipment of 40 pounds of breasts and 15 pounds of wings has been destroyed in a fire. Qual- ity Chicken's insurance policy provides reimbursement for the cost of the items destroyed. The insurance company permits Quality Chicken to use a joint-cost-allocation method. The splitoff point is assumed to be at the end of the production process. 1. Compute the cost of the special shipment destroyed using the following: a. Sales value at splitoff method b. Physical-measure method (pounds of finished product) Required 2. What joint-cost-allocation method would you recommend Quality Chicken use? Explain.

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

Noora Company manufactures quality hair care product . The ingredients are combine in the mixing department and put in 16 - ounce containers in the packaging department . The following information pertains to the mixing department for the month of May 2021 : Required: D) Develop a cost reconciliation for the mixing department for the month of May .
Noora Company manufactures quality hair care product. The ingredients are combined in themixing department and put in 16-ounce containers in the packaging department. Thefollowing information pertains to the mixing department for the month of May 2021: Noora Company had used the weighted-average method.Required:(a) Develop a physical flow schedule for the mixing department for the month of May. (b) Calculate the equivalent units of production for materials and conversion of the mixingdepartment for the month of May.
TK Co. manufactures a single product that goes through two processes, mixing and cooking. The data pertain to the mixing department for April 2016: Work-in-process inventory, April 1 Conversion: 80 percent completed Work-in-process inventory, April 30 Conversion: 40 percent completed Units started into production Units completed and transferred out 27,000 units 17,000 units Costs Work-in-process inventory, April 1 Materials X 64,800 Materials Y 89,100 119,880 Conversion Cost added during April Materials X 152,700 138,400 302,520 Materials Y Conversion Materials X is added at the beginning of work in the mixing department. Material Y also added in the mixing department, but not until units of product are 60 percent complete with regard to conversion. Conversion costs are incurred uniformly during the process. 9. The cost per equivalent unit for material Y is а. Р5.25 b. Р4.50 с. Р3.25 d. P5.00 10. The cost of units transferred out is a. P650,000 b. P787,500 с. Р688,000 d. P750,500 11.…
< a. C. eBook b. Show Me How (Round the per unit cost to the nearest cent and use in subsequent computations. If required, round your answers to the nearest dollar.) Journalize the following entries for the month: a. Materials are purchased to produce 1,560 units. b. Conversion costs are applied to 1,480 units of production. c. The cell completes 1,410 units, which are placed into finished goods. If an amount box does not require an entry, leave it blank. Check My Work intr-amprogress=false Lean Accounting The annual budgeted conversion costs for a lean cell are $124,440 for 1,700 production hours. Each unit produced by the cell requires 15 minutes of cell process time. During the month, 1,480 units are manufactured in the cell. The estimated materials costs are $57 per unit. ☐☐☐☐☐☐ 00 00 00 G ✩ = 0 Previous Next Upd
Need explanation for (a2) and take like
Please assist with the questions (d) and (e)
Michael’s Pottery makes decorative garden pieces using three consecutive processes: Moulding, Baking & Spraying. Quality control check takes place during the process, at which point, rejected units are separated fromgood units. The following details relate to production for the month of October 2020, for the Baking Department. i) Work-in-process, October 1: -0- ii) Transfer from Moulding: 2,000 units valued at $336.40 each iii) Other manufacturing costs incurred during October:Direct material added $202,120Direct Manufacturing Wages $212,840Manufacturing Overhead Applied $306,160 iv) Normal losses are estimated to be 5% of the units transferred in during the period. Losses from the Baking Department are deemed to be scrap and sold at $382 each. v) At inspection 300 decorative pieces were rejected as scrap. These units had reached the following degree of completion:From Moulding 100%Direct material added 40%Conversion costs 12½% vi) 1,200 pieces were completed and…
Outose Concept manufactures small tables in its Processing Department. Direct materials are added at the initiation of the production cycle and must be bundled in single kits for each unit. Conversion costs are incurred evenly throughout the production cycle. Before inspection, some units are spoiled due to undetectable materials defects. Spoiled units generally constitute 3% of the good units. Data for December 2017 are as follows: WIP, beginning inventory 12/1/2017 Direct materials (100% complete) Conversion costs (80% complete) Started during December Completed and transferred out 12/31/2017 WIP, ending inventory 12/31/2017 Direct materials (100% complete) Conversion costs (60% complete) Costs for December: WIP, beginning Inventory: Direct materials Conversion costs Direct materials added Conversion costs added 22,700 units A. $3.86 B. $3.69 C. $4.04 D. $7.90 76,300 units 72,100 units 18,100 units $151,000 76,900 231,400 294,000 What is the total cost per equivalent unit using the…
Preparing production cost report, second department with beginning WIP; journal entries Carla Carpet manufactures broadloom carpet in seven processes: spinning, dyeing, plying, spooling, tufting, latexing, and shearing. In the Dyeing Department, direct materials (dye) are added at the beginning of the process. Conversion costs are incurred evenly throughout the process. Information for November 2018 follows: Requirements Prepare the November production cost report for Carla’s Dyeing Department. The company uses the weighted-average method. Journalize all transactions affecting Carla’s Dyeing Department during November, including the entries that have already been posted. Assume labor costs are accrued and not yet paid.
Please show your computations through excel. d. Using AVERAGE method, compute for the cost of goods sold assuming there was no beginning or ending inventory of finished goods for the month.
Deporte Company produces single-colored T-shirts. Materials for the shirts are dyed inlarge vats. After dying the materials for a given color, the vats must be cleaned and preparedfor the next batch of materials to be colored. The following standards for changeover for agiven batch have been established:Direct materials (2.4 lbs. @ $0.95) $2.28Direct labor (0.75 hr. @ $7.40) 5.55Standard prime cost $7.83During the year, 79,500 pounds of material were purchased and used for the changeoveractivity. There were 30,000 batches produced, with the following actual prime costs:Direct materials $ 63,000Direct labor $163,385 (for 22,450 hrs.) Refer to the information for Deporte Company above.Required:Compute the materials and labor variances associated with the changeover activity, labelingeach variance as favorable or unfavorable.