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 17.9EX
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.
To Determine: The equivalent units for production of Company K.
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Equivalent Units of Production
Wheatmore Company manufactures cold cereal products, such as Frosted Flakes. Assume that the inventory in process on March 1 for the Packing Department included 1,020 pounds of cereal in the
packing machine hopper (enough for 680 24-oz. boxes) and 680 empty 24-oz. boxes held in the package carousel of the packing machine.
During March, 56,440 boxes of 24-oz. cereal were packaged. Conversion costs are incurred when a box is filled with cereal. On March 31, the packing machine hopper held 1,320 pounds of cereal and
the package carousel held 880 empty 24-oz. (1%-lb.) boxes. Assume that once a box is filled with cereal, it is immediately transferred to the finished goods warehouse.
Determine the equivalent units of production for cereal, boxes, and conversion costs for March. An equivalent unit is defined as "pounds" for cereal and "24-oz. boxes" for boxes and conversion costs. If
an amount box does not require an entry, leave it blank.
Wheatmore Company…
Cavalet Usts of Production
Kellogg Company (K) manufactures cold cereal products, such as Frosted Flakes Assume that the inventory in process on March 1 for the Packing Department included 1,200 pounds of cereal in the packing
machine bopper (enough for 800 24-oz. boxes), and 500 empty 24-oz. boxes held in the package carousel of the packing machine.
During March, 65,400 boxes of 24-02. cereal were packaged. Conversion costs are incurred when a box is filled with cereal. On March 31, the packing machine hopper held 900 pounds of cereal, and the package
carousel held 600 empty 24-or. (1-pound) boxes. Assume that once a box is filled with cereal, it is immediately transferred to the finished goods warehouse.
Determine the equivalent units of production for cereal, boxes, and conversion costs for March. An equivalent unit is defined as "pounds" for cereal and "24-oz. boses for boxes and conversion costs. If an amount is
zera, enter in "0"
Kellogg Company
Equivalent Units of Production for…
The Alfarm Corporation processes raw milk up to the splitoff point where two products,
cream and liquid skim, are produced and sold. There was no beginning inventory. The
following material was collected for the month of February:
Direct materials processed:
750,000 gallons (727,500 gallons of good product)
442,500 gallons
Liquid skim 285,000 gallons
421,500 at $110 per gallon
Liquid skim 273,000 at $100 per gallon
Production:
Cream
Sales:
Cream
The cost of purchasing 750,000 gallons of direct materials and processing it up to the splitoff
point to yield a total of 727,500 gallons of good product was $2,280,000.
1. What is the sales value at splitoff point proportions to allocate joint costs for cream and
liquid skim, respectively?
A. 59% and 41%
B. 61% and 39%
C. 50% and 50%
D. 63% and 37%
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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