REVEL for Horngren's Cost Accounting: A Managerial Emphasis -- Access Card (16th Edition) (What's New in Accounting)
16th Edition
ISBN: 9780134789705
Author: Srikant M. Datar, Madhav V. Rajan
Publisher: PEARSON
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Textbook Question
Chapter 20, Problem 20.28E
Backflush costing, two trigger points, materials purchase and sale (continuation of 20-27). Assume the same facts as in Exercise 20-27, except that Grand Devices now uses a backflush costing system with the following two trigger points for making entries in the accounting system:
- Purchase of direct materials
- Sale of finished goods
The Inventory Control account will Include direct materials purchased but not yet in production, materials in work in process, and materials in finished goods but not sold. No conversion costs are inventoried. Any under- or overallocated conversion costs are written off monthly to Cost of Goods Sold.
- 1. Prepare summary
journal entries for August, including the disposition of under- or overallocated conversion costs.
Required
- 2.
Post the entries In requirement 1 to T-accounts for Inventory Control, Conversion Costs Control, Conversion Costs Allocated, and Cost of Goods Sold.
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In the cost reconciliation report under the weighted-average method, the "Costs to be accounted for" section contains which of the following items?
Question 27 options:
Cost of ending work in process inventory
Cost of units transferred out
Cost of ending finished goods inventory
Cost of beginning work in process inventory
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3. it is a product costing system generally used in just-in-time inventory environment. This costing system delays the costing process until the production of goods is completed by eliminating the detailed tracking of cost throughout the production system and preparing journal entries only at trigger points.
a.Backflush costing
B.Standard costing
C.Normal costing
D.Traditional costing
E.None of the above
Chapter 20 Solutions
REVEL for Horngren's Cost Accounting: A Managerial Emphasis -- Access Card (16th Edition) (What's New in Accounting)
Ch. 20 - Why do better decisions regarding the purchasing...Ch. 20 - Name six cost categories that are important in...Ch. 20 - What assumptions are made when using the simplest...Ch. 20 - Give examples of costs included in annual carrying...Ch. 20 - Give three examples of opportunity costs that...Ch. 20 - What are the steps in computing the cost of a...Ch. 20 - Why might goal-congruence issues arise when...Ch. 20 - JIT purchasing has many benefits but also some...Ch. 20 - What are three factors causing reductions in the...Ch. 20 - You should always choose the supplier who offers...
Ch. 20 - Prob. 20.11QCh. 20 - What are the main features of JIT production, and...Ch. 20 - Distinguish inventory-costing systems using...Ch. 20 - Describe three different versions of backflush...Ch. 20 - Discuss the differences between lean accounting...Ch. 20 - The order size associated with the...Ch. 20 - Prob. 20.17MCQCh. 20 - Prob. 20.18MCQCh. 20 - Lyle Co. has only one product line. For that line,...Ch. 20 - Just-in-time inventory assumes all of the...Ch. 20 - Economic order quantity for retailer. Wonder Line...Ch. 20 - Economic order quantity, effect of parameter...Ch. 20 - EOQ for a retailer. The Fabric World sells fabrics...Ch. 20 - EOQ for manufacturer. Sk8 Company produces...Ch. 20 - Sensitivity of EOQ to changes in relevant ordering...Ch. 20 - JIT production, relevant benefits, relevant costs....Ch. 20 - Backflush costing and JIT production. Grand...Ch. 20 - Backflush costing, two trigger points, materials...Ch. 20 - Backflush costing, two trigger points, completion...Ch. 20 - Prob. 20.30PCh. 20 - Prob. 20.31PCh. 20 - Prob. 20.32PCh. 20 - Prob. 20.33PCh. 20 - JIT purchasing, relevant benefits, relevant costs....Ch. 20 - Supply-chain effects on total relevant inventory...Ch. 20 - Supply-chain effects on total relevant inventory...Ch. 20 - Backflush costing and JIT production. The Acton...Ch. 20 - Backflush, two trigger points, materials purchase...Ch. 20 - Backflush, two trigger points, completion of...Ch. 20 - Lean accounting. Reliable Security Devices (RSD)...Ch. 20 - JIT production, relevant benefits, relevant costs,...
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Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Similar questions
- a. Based on the data in Exercise 17-11, determine the following: 1. Cost of beginning work in process inventory completed this period 2. Cost of units transferred to finished goods during the period 3. Cost of ending work in process inventory 4. Cost per unit of the completed beginning work in process inventory b. Did the production costs change from the preceding period? Explain. c. Assuming that the direct materials cost per unit did not change from the preceding period, did the conversion costs per equivalent unit increase, decrease, or remain the same for the current period?arrow_forwardRequirements: (kindly disregard the requirements on picture.) 1. Cost of the following under FIFO method a. In process, beg to be accounted to completed and transferred. b. Started and completed for the period to be accounted to completed and transferred. c. In process, endarrow_forwardPlease do not give solution in image format thankuarrow_forward
- Wilma Waggins Company uses a process costing inventory system. The goods are processed first in department X and then passed onto department Y before being passed on as finished goods inventory. What is the journal entry for the transfer of unfinished goods from department X to department Y? Veuillez choisir une réponse : a. DR WIP - Department Y, CR Raw Materials b. DR WIP - Department Y, CR WIP - Department X c. DR WIP- Department X, CR Finished Goods Inventory d. DR WIP - Department X, CR WIP - Department Yarrow_forwardPlease do not give solution in image format thankuarrow_forwardWhich of the following is the best description of the operating cycle? Multiple Choice The length of time that it takes to convert raw materials into inventory The length of time that it takes to convert raw materials into accounts receivable The length of time to acquire raw materials and receive payment for them when sold None of the optionsarrow_forward
- Requirements: 1. Compute the equivalent units for materials and conversion costs. 2. Compute the unit costs for materials and coversion costs. 3. Compute the cost of goods transfered out. 4. Compute the costs of the ending inventory.arrow_forwardwhat is the d. proof of WIP inventory, end?arrow_forwardPlease do not give solution in image format thankuarrow_forward
- TB MC Qu. 3-30 (Static) The final step in recognizing the... The final step in recognizing the completion of production requires a company to: Multiple Choice add direct materials to Finished-Goods Inventory. add direct labor to Work-in-Process Inventory. add direct materials, direct labor, and manufacturing overhead to Work-in-Process Inventory. debit Finished-Goods Inventory and credit Work-in-Process Inventory. debit Work-in-Process Inventory and credit Finished-Goods Inventory.arrow_forwardEquivalent Units of Production and Related Costs The charges to Work in Process-Assembly Department for a period, together with information concerning production, are as follows. All direct materials are placed in process at the beginning of production. Work in Process-Assembly Department Bal., 6,000 units, 25% completed Direct materials, 141,000 units @ $2.1 Direct labor 15,300 To Finished Goods, 138,000 units 296,100 194,700 75,765 ? Factory overhead Bal. 2 units, 65% completed Determine the following: a. The number of units in work in process inventory at the end of the period. units b. Equivalent units of production for direct materials and conversion. If an amount box does not require an entry, leave it blank. Work in Process-Assembly Department Equivalent Units of Production for Direct Materials and Conversion Costs Fquivalentarrow_forwardGulliver, Inc., which uses a process-costing system, transfers completed production from Department no. 1 to Department no. 2 for further work. Which of the following best describes the account that would be debited to record this transfer? 01. Work-in-Process Inventory: Department no. 1. 02. Cost of Goods Transferred. 03. Finished-Goods Inventory: Department no. 1. 04. Work-in-Process Inventory: Department no. 2. 05. Finished-Goods Inventory: Department no. 2.arrow_forward
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