Financial & Managerial Accounting
14th Edition
ISBN: 9781337119207
Author: Carl Warren, James M. Reeve, Jonathan Duchac
Publisher: Cengage Learning
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Chapter 17, Problem 17.27EX
To determine
It is a method of cost accounting, which is used where the production is continuous, and the product needs various processes to complete. This method is used to ascertain the cost of the product at each process or stage of production.
Equivalents units for production
The activity of a processing department in terms of fully completed units is known as equivalent units. It includes the completed units of direct materials and conversion cost of beginning work in process, units completed and transferred out, and ending work in process.
Production cost report
A production cost report is a comprehensive report prepared for each department separately at the end of a particular period, which represents the physical flow and cost flow of product for the concerned department.
To Prepare: The production cost report for May using average cost method of Company HC.
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Cost of Production Report: Average Cost Method
The increases to Work in Process—Roasting Department for Highlands Coffee Company for May as well as information concerning production are as follows:
Work in process, May 1, 900 pounds, 30% completed
$5,630
Coffee beans added during May, 55,500 pounds
194,060
Conversion costs during May
81,560
Work in process, May 31, 500 pounds, 70% completed
_
Goods finished during May, 55,900 pounds
_
Prepare a cost of production report for May, using the average cost method. If required, round cost per equivalent unit answers to the nearest cent.
Highlands Coffee Company
Cost of Production Report-Roasting Department
For the Month Ended May 31
Unit Information
Units charged to production:
Inventory in process, May 1
Received from materials storeroom
Total units accounted for by the Roasting Department
Units to be assigned costs:
Whole Units
Equivalent Units of Production
Transferred to finished goods in…
Cost of Production Report: Average Cost Method
The increases to Work in Process-Roasting Department for Highlands Coffee Company for May as well as information concerning production are as follows:
Work in process, May 1, 1,300 pounds, 50% completed
$19,480
Coffee beans added during May, 80,200 pounds
672,170
Conversion costs during May
282,510
Work in process, May 31, 800 pounds, 60% completed
Goods finished during May, 80,700 pounds
Prepare a cost of production report, using the average cost method. If required, round cost per equivalent unit answers to the nearest cent.
Highlands Coffee Company
Cost of Production Report-Roasting Department
For the Month Ended May 31
Unit Information
Units to account for during production:
Inventory in process, May 1
Received from materials storeroom
Total units accounted for by the Roasting Department
Units to be assigned costs:
Whole Equivalent
Units
Units of
Production
Transferred to finished goods in May
Inventory in process, May 31
Total units…
ost of Production Report: Average Cost Method
The increases to Work in Process—Roasting Department for Highlands Coffee Company for May as well as information concerning production are as follows:
Work in process, May 1, 1,000 pounds, 50% completed
$17,530
Coffee beans added during May, 61,700 pounds
604,520
Conversion costs during May
254,070
Work in process, May 31, 600 pounds, 80% completed
_
Goods finished during May, 62,100 pounds
_
Prepare a cost of production report, using the average cost method. If required, round cost per equivalent unit answers to the nearest cent.
Highlands Coffee Company
Cost of Production Report-Roasting Department
For the Month Ended May 31
Unit Information
Units to account for during production:
Inventory in process, May 1
fill in the blank 1
Received from materials storeroom
fill in the blank 2
Total units accounted for by the Roasting Department
fill in the blank 3
Units to be assigned costs:
Whole Units…
Chapter 17 Solutions
Financial & Managerial Accounting
Ch. 17 - Which type of cost system, process or job order,...Ch. 17 - In job order cost accounting, the three elements...Ch. 17 - In a job order cost system, direct labor and...Ch. 17 - Why is the cost per equivalent unit often...Ch. 17 - What is the purpose for determining the cost per...Ch. 17 - Rameriz Company is a process manufacturer with two...Ch. 17 - Prob. 7DQCh. 17 - Prob. 8DQCh. 17 - How docs lean manufacturing differ from the...Ch. 17 - Job order versus process costing Which of the...
Ch. 17 - Units to be assigned costs Oak Ridge Steel Company...Ch. 17 - Equivalent units of materials cost The Rolling...Ch. 17 - Equivalent units of conversion costs The Rolling...Ch. 17 - Cost per equivalent unit The cost of direct...Ch. 17 - Cost of units transferred out and ending work in...Ch. 17 - Process cost journal entries In July, the cost of...Ch. 17 - Analyzing changes in unit costs The Costs of...Ch. 17 - Entries for materials cost flows in a process cost...Ch. 17 - Flowchart of accounts related to service and...Ch. 17 - Entries for flow of factory costs for process cost...Ch. 17 - Factory overhead rate, entry for applying factory...Ch. 17 - Equivalent units of production The Converting...Ch. 17 - Equivalent units of production Units of production...Ch. 17 - Equivalent units of production The following...Ch. 17 - Costs per equivalent unit A. Based upon the data...Ch. 17 - Prob. 17.9EXCh. 17 - Costs per equivalent unit Georgia Products Inc....Ch. 17 - Equivalent units of production and related costs...Ch. 17 - Cost of units completed and in process A. Based on...Ch. 17 - Errors in equivalent unit computation Napco...Ch. 17 - Cost per equivalent unit The following information...Ch. 17 - Costs per equivalent unit and production costs...Ch. 17 - Cost of production report The debits to Work in...Ch. 17 - Cost of production report The Cutting Department...Ch. 17 - Cost of production and journal entries AccuBlade...Ch. 17 - Cost of production and journal entries Lighthouse...Ch. 17 - Prob. 17.20EXCh. 17 - Lean manufacturing The following are some quotes...Ch. 17 - Equivalent units of production: average cost...Ch. 17 - Equivalent units of production: average cost...Ch. 17 - Equivalent units of production: average cost...Ch. 17 - Equivalent units of production and related costs...Ch. 17 - Cost per equivalent unit: average cost method The...Ch. 17 - Prob. 17.27EXCh. 17 - Cost of production report: average cost method...Ch. 17 - Entries for process cost system Port Ormond Carpet...Ch. 17 - Cost of production report Hana Coffee Company...Ch. 17 - Equivalent units and related costs; cost of...Ch. 17 - Work in process account data for two months; cost...Ch. 17 - Cost of production report: average cost method...Ch. 17 - Entries for process cost system Preston Grover...Ch. 17 - Cost of production report Bavarian Chocolate...Ch. 17 - Prob. 17.3BPRCh. 17 - Work in process account data for two months; cost...Ch. 17 - Prob. 17.5BPRCh. 17 - Analyzing process cost elements across product...Ch. 17 - Prob. 2ADMCh. 17 - Prob. 3ADMCh. 17 - Ethics in Action You arc the Cookie division...Ch. 17 - Prob. 17.3TIF
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