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. Production Cost report: Production cost report is made to summarize the details of production and cost activities in a process or department during a particular period. The Production cost report can be prepared using FIFO or weighted average methods. Under the FIFO method, the cost and equivalent units of beginning WIP is presented separately and calculations are done accordingly. Under the weighted average method, the cost and equivalent units of beginning are not treated separately. Conversion Costs: Conversion costs are manufacturing costs which are incurred to convert the raw material into finished good. These costs include direct labor and overheads. Equivalent units: Equivalent unit is the product unit that is physically not completed, but it is measured as equivalent to completed unit. 1. To prepare: The production cost report for the Preparation department of B E for the month of January using weighted average method

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Answer 1

Question

Chapter 20, Problem P20.34APGA

To determine

Concept 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.

Production Cost report: Production cost report is made to summarize the details of production and cost activities in a process or department during a particular period. The Production cost report can be prepared using FIFO or weighted average methods. Under the FIFO method, the cost and equivalent units of beginning WIP is presented separately and calculations are done accordingly. Under the weighted average method, the cost and equivalent units of beginning are not treated separately.

Conversion Costs: Conversion costs are manufacturing costs which are incurred to convert the raw material into finished good. These costs include direct labor and overheads.

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

1. To prepare: The production cost report for the Preparation department of B E for the month of January using weighted average method

To determine

2. To prepare: The journal entry for the cost of the sheets transferred to Compression department.

To determine

3. To prepare: The journal entries for the work in process account, posting the entries and finding ending balance.

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A balance sheet shows cash, $75,000; marketable securities, $110,000; receivables, $90,000; and $225,000 of inventories. Current liabilities are $200,000. The current ratio is 1.375 to 1. a. True b. False

Answer 2

Question

Chapter 20, Problem P20.34APGA

To determine

Concept 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.

Production Cost report: Production cost report is made to summarize the details of production and cost activities in a process or department during a particular period. The Production cost report can be prepared using FIFO or weighted average methods. Under the FIFO method, the cost and equivalent units of beginning WIP is presented separately and calculations are done accordingly. Under the weighted average method, the cost and equivalent units of beginning are not treated separately.

Conversion Costs: Conversion costs are manufacturing costs which are incurred to convert the raw material into finished good. These costs include direct labor and overheads.

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

1. To prepare: The production cost report for the Preparation department of B E for the month of January using weighted average method

To determine

2. To prepare: The journal entry for the cost of the sheets transferred to Compression department.

To determine

3. To prepare: The journal entries for the work in process account, posting the entries and finding ending balance.

Expert Solution & Answer

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Answer 3

Question

Chapter 20, Problem P20.34APGA

To determine

Concept 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.

Production Cost report: Production cost report is made to summarize the details of production and cost activities in a process or department during a particular period. The Production cost report can be prepared using FIFO or weighted average methods. Under the FIFO method, the cost and equivalent units of beginning WIP is presented separately and calculations are done accordingly. Under the weighted average method, the cost and equivalent units of beginning are not treated separately.

Conversion Costs: Conversion costs are manufacturing costs which are incurred to convert the raw material into finished good. These costs include direct labor and overheads.

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

1. To prepare: The production cost report for the Preparation department of B E for the month of January using weighted average method

To determine

2. To prepare: The journal entry for the cost of the sheets transferred to Compression department.

To determine

3. To prepare: The journal entries for the work in process account, posting the entries and finding ending balance.

Expert Solution & Answer

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Answer 4

Question

Chapter 20, Problem P20.34APGA

To determine

Concept 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.

Production Cost report: Production cost report is made to summarize the details of production and cost activities in a process or department during a particular period. The Production cost report can be prepared using FIFO or weighted average methods. Under the FIFO method, the cost and equivalent units of beginning WIP is presented separately and calculations are done accordingly. Under the weighted average method, the cost and equivalent units of beginning are not treated separately.

Conversion Costs: Conversion costs are manufacturing costs which are incurred to convert the raw material into finished good. These costs include direct labor and overheads.

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

1. To prepare: The production cost report for the Preparation department of B E for the month of January using weighted average method

To determine

2. To prepare: The journal entry for the cost of the sheets transferred to Compression department.

To determine

3. To prepare: The journal entries for the work in process account, posting the entries and finding ending balance.

Expert Solution & Answer

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Answer 5

Chapter 20, Problem P20.34APGA

To determine

Concept 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.

Production Cost report: Production cost report is made to summarize the details of production and cost activities in a process or department during a particular period. The Production cost report can be prepared using FIFO or weighted average methods. Under the FIFO method, the cost and equivalent units of beginning WIP is presented separately and calculations are done accordingly. Under the weighted average method, the cost and equivalent units of beginning are not treated separately.

Conversion Costs: Conversion costs are manufacturing costs which are incurred to convert the raw material into finished good. These costs include direct labor and overheads.

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

1. To prepare: The production cost report for the Preparation department of B E for the month of January using weighted average method

To determine

2. To prepare: The journal entry for the cost of the sheets transferred to Compression department.

To determine

3. To prepare: The journal entries for the work in process account, posting the entries and finding ending balance.

Answer 6

Chapter 20, Problem P20.34APGA

To determine

Concept 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.

Production Cost report: Production cost report is made to summarize the details of production and cost activities in a process or department during a particular period. The Production cost report can be prepared using FIFO or weighted average methods. Under the FIFO method, the cost and equivalent units of beginning WIP is presented separately and calculations are done accordingly. Under the weighted average method, the cost and equivalent units of beginning are not treated separately.

Conversion Costs: Conversion costs are manufacturing costs which are incurred to convert the raw material into finished good. These costs include direct labor and overheads.

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

1. To prepare: The production cost report for the Preparation department of B E for the month of January using weighted average method

Answer 7

Chapter 20, Problem P20.34APGA

To determine

Concept 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.

Production Cost report: Production cost report is made to summarize the details of production and cost activities in a process or department during a particular period. The Production cost report can be prepared using FIFO or weighted average methods. Under the FIFO method, the cost and equivalent units of beginning WIP is presented separately and calculations are done accordingly. Under the weighted average method, the cost and equivalent units of beginning are not treated separately.

Conversion Costs: Conversion costs are manufacturing costs which are incurred to convert the raw material into finished good. These costs include direct labor and overheads.

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

1. To prepare: The production cost report for the Preparation department of B E for the month of January using weighted average method

Answer 8

To determine

2. To prepare: The journal entry for the cost of the sheets transferred to Compression department.

Answer 9

To determine

2. To prepare: The journal entry for the cost of the sheets transferred to Compression department.

Answer 10

To determine

3. To prepare: The journal entries for the work in process account, posting the entries and finding ending balance.

Answer 11

To determine

3. To prepare: The journal entries for the work in process account, posting the entries and finding ending balance.

Answer 12

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Answer 13

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Answer 14

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Answer 15

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

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2. To prepare: The journal entry for the cost of the sheets transferred to Compression department.

3. To prepare: The journal entries for the work in process account, posting the entries and finding ending balance.

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