Issuance of materials The material storeroom releases raw materials for used in manufacturing process when a material requisition is received. The summary of material requisition aids as a basis for recording materials used in the process. To prepare: the subsidiary ledger under FIFO for material issuance and balances.

Question

Bella Brands operates with two divisions, Aftershave and Deodorant. The Aftershave Division produces a chemical that the Deodorant Division also uses. The Aftershave Division also sells this chemical to other firms for $10 per ounce. The cost information for the Aftershave Division is as follows: Variable costs per ounce $ 6.00 Fixed costs per ounce $ 15.00 Monthly production capacity 30,000 ounces If the Aftershave Division is not operating at full capacity and is able to supply the Deodorant Division with its needs for the chemical, what is the minimum transfer price that the Aftershave Division will accept? Multiple Choice None of the choices is correct. $10.00 per ounce $6.00 per ounce $15.00 per ounce $3.00 per ounce

Answer 1

Question

Chapter 19, Problem 19.3EX

(a)

To determine

Issuance of materials

The material storeroom releases raw materials for used in manufacturing process when a material requisition is received. The summary of material requisition aids as a basis for recording materials used in the process.

To prepare: the subsidiary ledger under FIFO for material issuance and balances.

(b)

To determine

material inventory balance at the end of May.

(c)

To determine

To record: Journal entry for issuance of materials.

(d)

To determine

To explain: the use of material ledger in maintaining inventory quantities on hand.

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Bella Brands operates with two divisions, Aftershave and Deodorant. The Aftershave Division produces a chemical that the Deodorant Division also uses. The Aftershave Division also sells this chemical to other firms for $10 per ounce. The cost information for the Aftershave Division is as follows: Variable costs per ounce $ 6.00 Fixed costs per ounce $ 15.00 Monthly production capacity 30,000 ounces If the Aftershave Division is not operating at full capacity and is able to supply the Deodorant Division with its needs for the chemical, what is the minimum transfer price that the Aftershave Division will accept? Multiple Choice None of the choices is correct. $10.00 per ounce $6.00 per ounce $15.00 per ounce $3.00 per ounce

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Bella Brands operates with two divisions, Aftershave and Deodorant. The Aftershave Division produces a chemical that the Deodorant Division also uses. The Aftershave Division also sells this chemical to other firms for $27 per ounce. The cost information for the Aftershave Division is as follows: Variable costs per ounce $ 6.00 Fixed costs per ounce $ 15.00 Monthly production capacity 30,000 ounces If the Aftershave Division is operating at full capacity and can sell all of the chemical that it can produce, what is the minimum transfer price that the Aftershave Division will accept? Multiple Choice None of the choices is correct. $6.00 per ounce $21.00 per ounce $15.00 per ounce $27.00 per ounce

Answer 2

Question

Chapter 19, Problem 19.3EX

(a)

To determine

Issuance of materials

The material storeroom releases raw materials for used in manufacturing process when a material requisition is received. The summary of material requisition aids as a basis for recording materials used in the process.

To prepare: the subsidiary ledger under FIFO for material issuance and balances.

(b)

To determine

material inventory balance at the end of May.

(c)

To determine

To record: Journal entry for issuance of materials.

(d)

To determine

To explain: the use of material ledger in maintaining inventory quantities on hand.

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Answer 3

Question

Chapter 19, Problem 19.3EX

(a)

To determine

Issuance of materials

The material storeroom releases raw materials for used in manufacturing process when a material requisition is received. The summary of material requisition aids as a basis for recording materials used in the process.

To prepare: the subsidiary ledger under FIFO for material issuance and balances.

(b)

To determine

material inventory balance at the end of May.

(c)

To determine

To record: Journal entry for issuance of materials.

(d)

To determine

To explain: the use of material ledger in maintaining inventory quantities on hand.

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Answer 4

Question

Chapter 19, Problem 19.3EX

(a)

To determine

Issuance of materials

The material storeroom releases raw materials for used in manufacturing process when a material requisition is received. The summary of material requisition aids as a basis for recording materials used in the process.

To prepare: the subsidiary ledger under FIFO for material issuance and balances.

(b)

To determine

material inventory balance at the end of May.

(c)

To determine

To record: Journal entry for issuance of materials.

(d)

To determine

To explain: the use of material ledger in maintaining inventory quantities on hand.

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Answer 5

Chapter 19, Problem 19.3EX

(a)

To determine

Issuance of materials

The material storeroom releases raw materials for used in manufacturing process when a material requisition is received. The summary of material requisition aids as a basis for recording materials used in the process.

To prepare: the subsidiary ledger under FIFO for material issuance and balances.

(b)

To determine

material inventory balance at the end of May.

(c)

To determine

To record: Journal entry for issuance of materials.

(d)

To determine

To explain: the use of material ledger in maintaining inventory quantities on hand.

Answer 6

Chapter 19, Problem 19.3EX

(a)

To determine

Issuance of materials

The material storeroom releases raw materials for used in manufacturing process when a material requisition is received. The summary of material requisition aids as a basis for recording materials used in the process.

To prepare: the subsidiary ledger under FIFO for material issuance and balances.

Answer 7

Chapter 19, Problem 19.3EX

(a)

To determine

Issuance of materials

The material storeroom releases raw materials for used in manufacturing process when a material requisition is received. The summary of material requisition aids as a basis for recording materials used in the process.

To prepare: the subsidiary ledger under FIFO for material issuance and balances.

Answer 8

(b)

To determine

material inventory balance at the end of May.

Answer 9

(b)

To determine

material inventory balance at the end of May.

Answer 10

(c)

To determine

To record: Journal entry for issuance of materials.

Answer 11

(c)

To determine

To record: Journal entry for issuance of materials.

Answer 12

(d)

To determine

To explain: the use of material ledger in maintaining inventory quantities on hand.

Answer 13

(d)

To determine

To explain: the use of material ledger in maintaining inventory quantities on hand.

Answer 14

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Ch. 19 - a. Name two principal types of cost accounting...Ch. 19 - What kind of firm would use a job order cost...Ch. 19 - Prob. 3DQ Ch. 19 - Prob. 4DQ Ch. 19 - What is a job cost sheet?Ch. 19 - Prob. 6DQ Ch. 19 - Discuss how the predetermined factory overhead...Ch. 19 - a. How is a predetermined factory overhead rate...Ch. 19 - a. What is (1) overapplied factory overhead and...Ch. 19 - Describe how a job order cost system can be used...

Solution Summary: The author explains how the material storeroom releases raw materials for use in manufacturing process when a material requisition is received.

material inventory balance at the end of May.

To record: Journal entry for issuance of materials.

To explain: the use of material ledger in maintaining inventory quantities on hand.

Chapter 19 Solutions