Process costing system: Process costing systems is a system to assign the costs where the production goes through different processes. A product may take several processes to complete and when these processes are separable, the process costing system is applied to ascertain the cost of each process. Equivalent units : Equivalent unit is the product unit that is physically not completed but it is measured as equivalent to completed unit. FIFO method: FIFO is one of the methods of process costing, under this method the cost and units of beginning work in process inventory are accounted separately. Requirement-1: To prepare: The process cost summary using FIFO method

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Answer 1

Question

Chapter 20, Problem 7BPSB

To determine

Introduction:

Process costing system: Process costing systems is a system to assign the costs where the production goes through different processes. A product may take several processes to complete and when these processes are separable, the process costing system is applied to ascertain the cost of each process.

Equivalent units: Equivalent unit is the product unit that is physically not completed but it is measured as equivalent to completed unit.

FIFO method: FIFO is one of the methods of process costing, under this method the cost and units of beginning work in process inventory are accounted separately.

Requirement-1:

To prepare: The process cost summary using FIFO method

To determine

Requirement-2:

To prepare: The journal entry to record the transfer of goods from cutting dept. to blending dept.

To determine

Requirement-3:

To determine: The effect of error of estimation of percentage of equivalent units on the bonus

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Hi expert please give me answer general accounting question

Plug Products owns 80 percent of the stock of Spark Filter Company, which it acquired at underlying book value on August 30, 20X6. At that date, the fair value of the noncontrolling interest was equal to 20 percent of the book value of Spark Filter. Summarized trial balance data for the two companies as of December 31, 20X8, are as follows: Plug Products Spark Filter Company Credit Debit Credit Debit Cash and Accounts Receivable $ 146,000 $ 95,000 Inventory 236,000 119,000 Buildings and Equipment (net) 288,000 187,000 Investment in Spark Filter Company 267,789 Cost of Goods Sold 172,000 137,000 Depreciation Expense 40,000 30,000 Current Liabilities $ 170,147 $ 53,947 Common Stock 192,000 73,000 Retained Earnings 460,000 216,000 Sales 275,053 225,053 Income from Spark Filter Company 52,589 Total $ 1,149,789 $ 1,149,789 $ 568,000 $ 568,000 On January 1, 20X8, Plug's inventory contained filters purchased…

Volume-based rates produce inaccurate product cost when: Multiple Choice A large portion of factory overhead cost is not volume-based. Firms produce a diverse mix of products. Large volumes of a product are manufactured. Both a lack of volume-based overhead and there is a large range of products. None of these answer choices are correct.

Answer 2

Question

Chapter 20, Problem 7BPSB

To determine

Introduction:

Process costing system: Process costing systems is a system to assign the costs where the production goes through different processes. A product may take several processes to complete and when these processes are separable, the process costing system is applied to ascertain the cost of each process.

Equivalent units: Equivalent unit is the product unit that is physically not completed but it is measured as equivalent to completed unit.

FIFO method: FIFO is one of the methods of process costing, under this method the cost and units of beginning work in process inventory are accounted separately.

Requirement-1:

To prepare: The process cost summary using FIFO method

To determine

Requirement-2:

To prepare: The journal entry to record the transfer of goods from cutting dept. to blending dept.

To determine

Requirement-3:

To determine: The effect of error of estimation of percentage of equivalent units on the bonus

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 3

Question

Chapter 20, Problem 7BPSB

To determine

Introduction:

Process costing system: Process costing systems is a system to assign the costs where the production goes through different processes. A product may take several processes to complete and when these processes are separable, the process costing system is applied to ascertain the cost of each process.

Equivalent units: Equivalent unit is the product unit that is physically not completed but it is measured as equivalent to completed unit.

FIFO method: FIFO is one of the methods of process costing, under this method the cost and units of beginning work in process inventory are accounted separately.

Requirement-1:

To prepare: The process cost summary using FIFO method

To determine

Requirement-2:

To prepare: The journal entry to record the transfer of goods from cutting dept. to blending dept.

To determine

Requirement-3:

To determine: The effect of error of estimation of percentage of equivalent units on the bonus

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 4

Question

Chapter 20, Problem 7BPSB

To determine

Introduction:

Process costing system: Process costing systems is a system to assign the costs where the production goes through different processes. A product may take several processes to complete and when these processes are separable, the process costing system is applied to ascertain the cost of each process.

Equivalent units: Equivalent unit is the product unit that is physically not completed but it is measured as equivalent to completed unit.

FIFO method: FIFO is one of the methods of process costing, under this method the cost and units of beginning work in process inventory are accounted separately.

Requirement-1:

To prepare: The process cost summary using FIFO method

To determine

Requirement-2:

To prepare: The journal entry to record the transfer of goods from cutting dept. to blending dept.

To determine

Requirement-3:

To determine: The effect of error of estimation of percentage of equivalent units on the bonus

Expert Solution & Answer

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Check out a sample textbook solution

See solution

Answer 5

Chapter 20, Problem 7BPSB

To determine

Introduction:

Process costing system: Process costing systems is a system to assign the costs where the production goes through different processes. A product may take several processes to complete and when these processes are separable, the process costing system is applied to ascertain the cost of each process.

Equivalent units: Equivalent unit is the product unit that is physically not completed but it is measured as equivalent to completed unit.

FIFO method: FIFO is one of the methods of process costing, under this method the cost and units of beginning work in process inventory are accounted separately.

Requirement-1:

To prepare: The process cost summary using FIFO method

To determine

Requirement-2:

To prepare: The journal entry to record the transfer of goods from cutting dept. to blending dept.

To determine

Requirement-3:

To determine: The effect of error of estimation of percentage of equivalent units on the bonus

Answer 6

Chapter 20, Problem 7BPSB

To determine

Introduction:

Process costing system: Process costing systems is a system to assign the costs where the production goes through different processes. A product may take several processes to complete and when these processes are separable, the process costing system is applied to ascertain the cost of each process.

Equivalent units: Equivalent unit is the product unit that is physically not completed but it is measured as equivalent to completed unit.

FIFO method: FIFO is one of the methods of process costing, under this method the cost and units of beginning work in process inventory are accounted separately.

Requirement-1:

To prepare: The process cost summary using FIFO method

Answer 7

Chapter 20, Problem 7BPSB

To determine

Introduction:

Process costing system: Process costing systems is a system to assign the costs where the production goes through different processes. A product may take several processes to complete and when these processes are separable, the process costing system is applied to ascertain the cost of each process.

Equivalent units: Equivalent unit is the product unit that is physically not completed but it is measured as equivalent to completed unit.

FIFO method: FIFO is one of the methods of process costing, under this method the cost and units of beginning work in process inventory are accounted separately.

Requirement-1:

To prepare: The process cost summary using FIFO method

Answer 8

To determine

Requirement-2:

To prepare: The journal entry to record the transfer of goods from cutting dept. to blending dept.

Answer 9

To determine

Requirement-2:

To prepare: The journal entry to record the transfer of goods from cutting dept. to blending dept.

Answer 10

To determine

Requirement-3:

To determine: The effect of error of estimation of percentage of equivalent units on the bonus

Answer 11

To determine

Requirement-3:

To determine: The effect of error of estimation of percentage of equivalent units on the bonus

Answer 12

Expert Solution & Answer

Answer 13

Expert Solution & Answer

Answer 14

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Answer 15

Ch. 20 - Prob. 1DQ Ch. 20 - Prob. 2DQ Ch. 20 - Prob. 3DQ Ch. 20 - Prob. 4DQ Ch. 20 - Prob. 5DQ Ch. 20 - Prob. 6DQ Ch. 20 - Prob. 7DQ Ch. 20 - Prob. 8DQ Ch. 20 - Prob. 9DQ Ch. 20 - Prob. 10DQ

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Requirement-2:

To prepare: The journal entry to record the transfer of goods from cutting dept. to blending dept.

Requirement-3:

To determine: The effect of error of estimation of percentage of equivalent units on the bonus

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Chapter 20 Solutions

Concept explainers

Videos

Requirement-2: To prepare: The journal entry to record the transfer of goods from cutting dept. to blending dept.

Requirement-3: To determine: The effect of error of estimation of percentage of equivalent units on the bonus

Want to see the full answer?

Chapter 20 Solutions

Requirement-2:

To prepare: The journal entry to record the transfer of goods from cutting dept. to blending dept.

Requirement-3:

To determine: The effect of error of estimation of percentage of equivalent units on the bonus