Managerial Accounting
15th Edition
ISBN: 9781337912020
Author: Carl Warren, Ph.d. Cma William B. Tayler
Publisher: South-Western College Pub
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Textbook Question
Chapter 3, Problem 2PB
Cost of production report
Bavarian Chocolate Company processes chocolate into candy bars. The process begins by placing direct materials (raw chocolate, milk, and sugar) into the Blending Department. All materials are placed into production at the beginning of the blending process. After blending, the milk chocolate is then transferred to the Molding Department, where the milk chocolate is formed into candy bars. The following is a partial work in process account of the Blending Department at October 31:
Instructions
- 1. Prepare a cost of production report, and identify the missing amounts for Work in Process—Blending Department.
- 2. Assuming that the October 1 work in process inventory includes direct materials of $38,295, determine the increase or decrease in the cost per equivalent unit for direct materials and conversion between September and October.
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Cost of Production Report
Bavarian Chocolate Company processes chocolate into candy bars. The process begins by placing direct materials (raw chocolate, milk, and sugar) into the Blending
Department. All materials are placed into production at the beginning of the blending process. After blending, the milk chocolate is then transferred to the Molding
Department, where the milk chocolate is formed into candy bars. The following is a partial work in process account of the Blending Department at October 31:
ACCOUNT Work in Process-Blending Department
Date Item
October 1 Bal., 2,300 units, 3/5 completed
31 Direct materials, 26,000 units
31 Direct labor
31 Factory overhead
31 Goods transferred, 25,700 units
31 Ball., 2 units, 1/5 completed
Units
Costs
Cost per equivalent unit:
Debit Credit
429,000
100,560
48,480
Units charged to production:
Inventory in process, October 1
Received from materials storeroom
Total units accounted for by the Blending Department
Units to be assigned costs:…
Bavarian Chocolate Company processes chocolate into candy bars. The process begins by placing direct materials (raw chocolate, milk, and sugar) into the Blending Department. All materials are placed into production at the beginning of the blending process. After blending, the milk chocolate is then transferred to the Molding Department, where the milk chocolate is formed into candy bars. The following is a partial work in process accountof the Blending Department at October 31:AttachmentInstructions1. Prepare a cost of production report and identify the missing amounts for Work in Process—Blending Department.2. Assuming that the October 1 work in process inventory includes direct materials of $38,295, determine the increase or decrease in the cost per equivalent unit for direct materials and conversion between September and October.
Sandhill Company manufactures pizza sauce through two production departments: Cooking and Canning. In each process, materials
and conversion costs are incurred evenly throughout the process. For the month of April, the work in process inventory accounts show
the following debits.
Beginning work in process
Direct materials
Direct labor
Manufacturing overhead
Costs transferred in
Cooking
April 30
$0
30
20,580
8,330
30,870
Canning
$3,920
Date Account Titles and Explanation
(To record materials used)
8,820
Journalize the April transactions. (List all debit entries before credit entries. Credit account titles are automatically indented when amount is
entered. Do not indent manually.)
6,860
25,320
51,940
Debit
Credit
Chapter 3 Solutions
Managerial Accounting
Ch. 3 - Which type of cost system, process or job order,...Ch. 3 - In job order cost accounting, the three elements...Ch. 3 - In a job order cost system, direct labor and...Ch. 3 - Why is the cost per equivalent unit often...Ch. 3 - What is the purpose for determining the cost per...Ch. 3 - Rameriz Company is a process manufacturer with two...Ch. 3 - What is the most important purpose of the cost of...Ch. 3 - How are cost of production reports used for...Ch. 3 - Job order versus process costing Which of the...Ch. 3 - Kraus Steel Company has two departments, Casting...
Ch. 3 - The Rolling Department of Kraus Steel Company had...Ch. 3 - The Rolling Department of Kraus Steel Company had...Ch. 3 - The cost of direct materials transferred into the...Ch. 3 - The costs per equivalent unit of direct materials...Ch. 3 - In October, the cost of materials transferred into...Ch. 3 - Prob. 8BECh. 3 - Entries for materials cost flows in a process cost...Ch. 3 - Flowchart of accounts related to service and...Ch. 3 - Radford Inc. manufactures a sugar product by a...Ch. 3 - The cost accountant for River Rock Beverage Co....Ch. 3 - The Converting Department of Worley Company had...Ch. 3 - Data for the two departments of Kimble Pierce...Ch. 3 - The following information concerns production in...Ch. 3 - a. Based upon the data in Exercise 17-7, determine...Ch. 3 - Equivalent units of production Kellogg Company...Ch. 3 - Costs per equivalent unit Georgia Products Inc....Ch. 3 - The charges to Work in ProcessAssembly Department...Ch. 3 - a. Based on the data in Exercise 17-11, determine...Ch. 3 - Errors in equivalent unit computation Napco...Ch. 3 - Cost per equivalent unit The following information...Ch. 3 - Costs per equivalent unit and production costs...Ch. 3 - Cost of production report The debits to Work in...Ch. 3 - Cost of Production report The Cutting Department...Ch. 3 - Prob. 18ECh. 3 - Prob. 19ECh. 3 - Prob. 20ECh. 3 - The Converting Department of Tender Soft Tissue...Ch. 3 - Units of production data for the two departments...Ch. 3 - The following information concerns production in...Ch. 3 - Prob. 24ECh. 3 - The following information concerns production in...Ch. 3 - Prob. 26ECh. 3 - Prepare a cost of production report for the...Ch. 3 - Entries for process cost system Port Ormond Carpet...Ch. 3 - Cost of production report Hana Coffee Company...Ch. 3 - Equivalent units and related costs; cost of...Ch. 3 - Work in process account data for two months; cost...Ch. 3 - Sunrise Coffee Company roasts and packs coffee...Ch. 3 - Entries for process cost system Preston Grover...Ch. 3 - Cost of production report Bavarian Chocolate...Ch. 3 - Equivalent units and related costs; cost of...Ch. 3 - Work in process account data for two months; cost...Ch. 3 - Blue Ribbon Flour Company manufactures flour by a...Ch. 3 - Dura-Conduit Corporation manufactures plastic...Ch. 3 - Analyzing process cost elements across product...Ch. 3 - Analyzing process cost elements over time Pix...Ch. 3 - Determining cost relationships Midst ate...Ch. 3 - Ethics in Action You are the Cookie division...Ch. 3 - Communications Jamarcus Bradshaw, plant manager of...Ch. 3 - Accounting for materials costs In papermaking...Ch. 3 - During December, Krause Chemical Company had the...Ch. 3 - Jones Corporation uses a first-in, first-out...Ch. 3 - Kimbeth Manufacturing uses a process cost system...Ch. 3 - A company is using process costing with the...
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