Process costs 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 Determine: The equivalents units for production of direct materials and conversion costs for the month of July for Company DC.

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Answer 1

Question

Chapter 17, Problem 17.3BPR

(1)

To determine

Process costs

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 Determine: The equivalents units for production of direct materials and conversion costs for the month of July for Company DC.

(2)

To determine

To Prepare: The journal entry to record cost transferred from reaction department to filling department and cost transferred from filling department to finished goods during the month of January.

(3)

To determine

Increase or decrease in the cost per equivalent per unit for direct materials and conversion cost between December and January.

(4)

To determine

To Discuss: The uses of cost of production report.

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Chapter 17 Homework 12 1.42 points Saved Help Save & Exit Submit Check my work Exercise 17-11 (Algo) Computing product cost per unit using plantwide method and activity-based costing LO P1, P3 Consider the following data for two products of Vigano Manufacturing. Activity Budgeted Cost Activity Driver eBook Machine setup Parts handling Quality inspections Hint Total budgeted overhead $ 25,000 (20 machine setups) 20,000 (16,000 parts) 30,000 (100 inspections) $ 75,000 Unit Information Product A Units produced 2,500 units Ask Direct materials cost $ 35 per unit Product Bi 500 units $ 45 per unit $ 55 per unit 2 per unit $ 65 per unit 2.50 per unit Print References Direct labor cost Direct labor hours 1. Using a plantwide overhead rate based on 6,250 direct labor hours, compute the total product cost per unit for each product. 2. Consider the following additional information about these two products. If activity-based costing is used to allocate overhead cost, (a) compute overhead activity…

Consolidation Working Paper One Year after Acquisition, Bargain Purchase On January 1, 2022, Paxon Corporation acquired 90 percent of the outstanding common stock of Saxon Company for $1.8 billion cash. The fair value of the 10 percent noncontrolling interest in Saxon was estimated to be $150 million at the date of acquisition. Paxon uses the complete equity method to report its investment. The trial balances of Paxon and Saxon (in millions) Cash and receivables Inventory Equity method investments Investment in Saxon Dr(Cr) Paxon Saxon $3,225 $855 2,260 530 December 31, 2022, appear below: 2,441.5 Land 650 300 Buildings and equipment, net 3,600 1,150 Current liabilities (2,020) (1,200) Long-term debt (5,000) (450) (500) (50) Common stock, par value Additional paid-in capital Retained earnings, January 1 Dividends Sales revenue (1,200) (200) (2,410) (600) 500 250 (30,000) (12,000) Equity in net income of Saxon (616.5) Gain on acquisition (250) Gain on sale of securities (150) Cost of…

Answer 2

Question

Chapter 17, Problem 17.3BPR

(1)

To determine

Process costs

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 Determine: The equivalents units for production of direct materials and conversion costs for the month of July for Company DC.

(2)

To determine

To Prepare: The journal entry to record cost transferred from reaction department to filling department and cost transferred from filling department to finished goods during the month of January.

(3)

To determine

Increase or decrease in the cost per equivalent per unit for direct materials and conversion cost between December and January.

(4)

To determine

To Discuss: The uses of cost of production report.

Expert Solution & Answer

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Answer 3

Question

Chapter 17, Problem 17.3BPR

(1)

To determine

Process costs

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 Determine: The equivalents units for production of direct materials and conversion costs for the month of July for Company DC.

(2)

To determine

To Prepare: The journal entry to record cost transferred from reaction department to filling department and cost transferred from filling department to finished goods during the month of January.

(3)

To determine

Increase or decrease in the cost per equivalent per unit for direct materials and conversion cost between December and January.

(4)

To determine

To Discuss: The uses of cost of production report.

Expert Solution & Answer

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Check out a sample textbook solution

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Answer 4

Question

Chapter 17, Problem 17.3BPR

(1)

To determine

Process costs

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 Determine: The equivalents units for production of direct materials and conversion costs for the month of July for Company DC.

(2)

To determine

To Prepare: The journal entry to record cost transferred from reaction department to filling department and cost transferred from filling department to finished goods during the month of January.

(3)

To determine

Increase or decrease in the cost per equivalent per unit for direct materials and conversion cost between December and January.

(4)

To determine

To Discuss: The uses of cost of production report.

Expert Solution & Answer

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Check out a sample textbook solution

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Answer 5

Chapter 17, Problem 17.3BPR

(1)

To determine

Process costs

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 Determine: The equivalents units for production of direct materials and conversion costs for the month of July for Company DC.

(2)

To determine

To Prepare: The journal entry to record cost transferred from reaction department to filling department and cost transferred from filling department to finished goods during the month of January.

(3)

To determine

Increase or decrease in the cost per equivalent per unit for direct materials and conversion cost between December and January.

(4)

To determine

To Discuss: The uses of cost of production report.

Answer 6

Chapter 17, Problem 17.3BPR

(1)

To determine

Process costs

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 Determine: The equivalents units for production of direct materials and conversion costs for the month of July for Company DC.

Answer 7

Chapter 17, Problem 17.3BPR

(1)

To determine

Process costs

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 Determine: The equivalents units for production of direct materials and conversion costs for the month of July for Company DC.

Answer 8

(2)

To determine

To Prepare: The journal entry to record cost transferred from reaction department to filling department and cost transferred from filling department to finished goods during the month of January.

Answer 9

(2)

To determine

To Prepare: The journal entry to record cost transferred from reaction department to filling department and cost transferred from filling department to finished goods during the month of January.

Answer 10

(3)

To determine

Increase or decrease in the cost per equivalent per unit for direct materials and conversion cost between December and January.

Answer 11

(3)

To determine

Increase or decrease in the cost per equivalent per unit for direct materials and conversion cost between December and January.

Answer 12

(4)

To determine

To Discuss: The uses of cost of production report.

Answer 13

(4)

To determine

To Discuss: The uses of cost of production report.

Answer 14

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Answer 15

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Answer 16

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Answer 17

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Solution Summary: The author explains how to calculate the equivalents units for production of direct materials and conversion costs for the month of July for Company DC.

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To Prepare: The journal entry to record cost transferred from reaction department to filling department and cost transferred from filling department to finished goods during the month of January.

Increase or decrease in the cost per equivalent per unit for direct materials and conversion cost between December and January.

To Discuss: The uses of cost of production report.

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