Concept explainers
- 1. Compute equivalent units for direct materials and conversion costs. Show physical units in the first column of your schedule.
- 2. Compute the total standard costs of sunglasses transferred out in May and the total standard costs of the May 31 inventory of work in process.
- 3. Compute the total May variances for direct materials and conversion costs.
- 4. Prepare summarized journal entries to record both the actual costs and standard costs for direct materials and conversion costs, including the variances for both production costs.
Trending nowThis is a popular solution!
Learn your wayIncludes step-by-step video
Chapter 17 Solutions
Horngren's Cost Accounting: A Managerial Emphasis (16th Edition)
Additional Business Textbook Solutions
Horngren's Financial & Managerial Accounting, The Managerial Chapters (6th Edition)
Horngren's Accounting (12th Edition)
Financial Accounting
Horngren's Financial & Managerial Accounting, The Financial Chapters (6th Edition)
Managerial Accounting (5th Edition)
Horngren's Financial & Managerial Accounting, The Financial Chapters (Book & Access Card)
- For each cost category, summarize total assembly department costs for October 2017 and calculate the cost per equivalent unit.arrow_forwardCalculate equivalent units of transferred-in costs, direct materials, and conversion costs.arrow_forwardSmart Toys Corporation makes interlocking children's blocks in a single processing department. Direct materials are added at the start of production. Conversion costs are added evenly throughout production. Smart Toys uses the weighted-average method of process costing. The following information for October 2017 is available. the icon to view the cost information.) Read the requirements3. Requirement 1. Summarize total costs to account for and calculate cost per equivalent unit for direct materials and conversion costs. Begin by summarizing the total costs to account for. Total Direct Conversion Production Costs Materials Costs (1) (2) Total costs to account for Now calculate cost per equivalent unit for direct materials and conversion costs. (Round the cost per equivalent unit amounts to the nearest cent.) Direct Conversion…arrow_forward
- Calculate the cost per unassembled chest and assembled chest for Work Order 1200A and Work Order 1250A, respectively.arrow_forwardCarpet 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 Novemver 2018 follows : Requirement 1. Prepare the November production cost report for Carrie's Dyeing Department. The company uses the weighted -average method (Round all cost per unit amounts to the nearest and all other amounts to the nearest whole dollar. Abbreviation used: EUP = equivalent units production.)arrow_forwardThe assembly division of Fenton Watches, Inc. uses the FIFO method of process costing. Consider the following data for May 2020: (Click the icon to view the data.) (Click the icon to view the equivalent unit computation.) Requirement Summarize total costs to account for, calculate cost per equivalent unit for direct materials and conversion costs, and assign costs to units completed (and transferred out) and to units in ending work-in-process inventory. Begin by summarizing total costs to account for. Total costs to account for Total CH Production Costs Direct Materials Conversion Costsarrow_forward
- S. Lee Enterprises uses operations costing and assigns conversion costs based on the number of units assembled. Compute the cost of each model assembled in November.arrow_forwardWeighted-average method, equivalent units. The assembly division of Quality Time Pieces, Inc. uses the weightedaverage method of process costing. Consider the following data for the month of May 2017:arrow_forwardThe assembly division of Stiles Watches,Inc. uses the weighted-average method of process costing. Consider the following data for the month of May 2017: Requirement Compute equivalent units for direct materials and conversion costs. Show physical units in the first column of your schedule. Enter the physical units first, then calculate the equivalent units. Physical Flow of Production Units Work in process beginning Started during current period To account for Completed and transferred out during current period Work in process, ending Accounted for Equivalent units of work done to date Equivalent Units Direct Conversion Materials Costs 1: Data Table Physical Units Direct Conversion (Watches) Materials Costs Beginning work in…arrow_forward
- The assembly division of Quality Time Pieces, Inc. uses the weighted-average method of process costing. Consider the following data for May 2020: (Click the icon to view the data.) Requirement Compute equivalent units for direct materials and conversion costs. Show physical units in the first column of your schedule. Enter the physical units first, then calculate the equivalent units. Flow of Production Work in process beginning Started during current period To account for Completed and transferred out during current period Work in process, ending Accounted for Equivalent units of work done to date Physical Units Data table Beginning work in process (May 1)ª Started in May 2020 Completed during May 2020 Ending work in process (May 31) Total costs added during May 2020 Physical Units Direct (Watches) Materials 100 $459,888 Print 510 450 160 $3,237,000 aDegree of completion: direct materials, 80%; conversion costs, 35%. bDegree of completion: direct materials, 80%; conversion costs, 40%.…arrow_forwardThe assembly division of Quality Time Pieces, Inc. uses the FIFO method of process costing. Consider the following data for May 2020: (Click the icon to view the data.) Requirement Compute equivalent units for direct materials and conversion costs. Show physical units in the first column of your schedule. Enter the physical units in first, then calculate the equivalent units. Flow of Production Work in process, beginning Started during current period To account for Completed and transferred out during current period: From beginning work in process Started and completed Work in process, ending Accounted for Equivalent unts of work done in current period Physical Units Data table Beginning work in process (May 1)ª Started in May 2020 Physical Units (Watches) 100 510 450 160 Print Completed during May 2020 Ending work in process (May 31)b Total costs added during May 2020 a Degree of completion: direct materials, 80%; conversion costs, 35%. Degree of completion: direct materials, 80%;…arrow_forwardWeighted-average method, equivalent units. The assembly division of Quality Time Pieces, Inc. uses the weighted-average method of process costing. Consider the following data for the month of May 2017: Physical Units Direct Materials Conversion (Watches) Costs Beginning work in process (May 1) Started in May 2017 Completed during May 2017 Ending work in process (May 31) Total costs added during May 2017 100 $ 459,888 $ 142,570 510 450 160 $3,237,000 $1,916,000 * Degree of completion: direct materials, 80%; conversion costs, 35%. "Degree of completion; direct materials, 80%; conversion costs, 40%. Compute equivalent units for direct materials and conversion costs. Show physical units in the first column of your schedule.arrow_forward
- Cornerstones of Cost Management (Cornerstones Ser...AccountingISBN:9781305970663Author:Don R. Hansen, Maryanne M. MowenPublisher:Cengage LearningPrinciples of Accounting Volume 2AccountingISBN:9781947172609Author:OpenStaxPublisher:OpenStax CollegePrinciples of Cost AccountingAccountingISBN:9781305087408Author:Edward J. Vanderbeck, Maria R. MitchellPublisher:Cengage Learning
- Excel Applications for Accounting PrinciplesAccountingISBN:9781111581565Author:Gaylord N. SmithPublisher:Cengage LearningManagerial Accounting: The Cornerstone of Busines...AccountingISBN:9781337115773Author:Maryanne M. Mowen, Don R. Hansen, Dan L. HeitgerPublisher:Cengage LearningManagerial AccountingAccountingISBN:9781337912020Author:Carl Warren, Ph.d. Cma William B. TaylerPublisher:South-Western College Pub