5th Edition

ISBN: 9780134128528

Author: Karen W. Braun, Wendy M. Tietz

Publisher: PEARSON

Concept explainers

Process costing is a sort of operation costing which is employed to determine the value of a product at each process or stage of producing process, applicable where goods produced from a series of continuous operations or procedure.

Job Costing

Job costing is adhesive costs of each and every job involved in the production processes. It is an accounting measure. It is a method which determines the cost of specific jobs, which are performed according to the consumer’s specifications. Job costing …

ABC Costing

Cost Accounting is a form of managerial accounting that helps the company in assessing the total variable cost so as to compute the cost of production. Cost accounting is generally used by the management so as to ensure better decision-making. In compari…

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Textbook Question

Chapter 5, Problem 5.17SE

Continuation of S5-16: Record journal entry and post to T-account (Learning Objective 4)

Refer to the Arctic Springs Filtration Department Data Set and your answer to S5-16.

1. Record the journal entry to transfer the cost of the 160.000 liters completed and transferred out of the Filtration Department and into the Bottling Department.
2. Record all of the transactions in the “Work in Process Inventory—Filtration” T-account.

Arctic Springs Data Set: Filtration Department

Arctic Springs produces premium bottled water. Arctic Springs purchases artesian water, stores the water in large tanks, and then runs the water through two processes:

Filtration, where workers microfilter and ozonate the water
Bottling, where workers bottle and package the filtered water

During December, the filtration process incurs the following costs in processing 200,000 liters:

Wages of workers operating the filtration equipment	$ 9,380
Wages of workers operating ozonation equipment	$ 9,300
Manufacturing overhead allocated to filtration	$ 24,000
Water	$120,000

Arctic Springs has no beginning inventory in the Filtration Department.

Definition Definition Financial journal in which only cash-related transactions are recorded. Cash transactions are posted chronologically in the cash book, which is also called a subsidiary book. All the cash receipts are recorded on the debit side and all the cash payments are recorded on the credit side. An important point to remember is that the cash book never shows a credit balance; only a debit balance is shown in the cash book.

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Chapter 5, Problem 5.16SE

Chapter 5, Problem 5.18SE

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Chapter 5 Solutions

Managerial Accounting (5th Edition)

Ch. 5 - (Learning Objective 1) Which of the following is...Ch. 5 - (Learning Objective 2) Conversion costs consist of...Ch. 5 - (Learning Objective 2) Which of the following is...Ch. 5 - (Learning Objective 3) Which of the following is...Ch. 5 - Prob. 5QC Ch. 5 - (Learning Objective 4) The journal entry needed to...Ch. 5 - (Learning Objective 4) A company has two...Ch. 5 - Prob. 8QC Ch. 5 - Prob. 9QC Ch. 5 - Prob. 10QC

Ch. 5 - Compare job costing and process costing (Learning...Ch. 5 - Prob. 5.2SE Ch. 5 - Prob. 5.3SE Ch. 5 - Determine the physical flow of units (process...Ch. 5 - Compute equivalent units (process costing Step 2)...Ch. 5 - Compute equivalent units (process costing Step 2)...Ch. 5 - Summarize total costs to account for (process...Ch. 5 - Prob. 5.8SE Ch. 5 - Prob. 5.9SE Ch. 5 - Prob. 5.10SE Ch. 5 - Prob. 5.11SE Ch. 5 - Prob. 5.12SE Ch. 5 - Prob. 5.13SE Ch. 5 - Prob. 5.14SE Ch. 5 - Prob. 5.15SE Ch. 5 - Prob. 5.16SE Ch. 5 - Continuation of S5-16: Record journal entry and...Ch. 5 - Compute equivalent units in second department...Ch. 5 - Prob. 5.19SE Ch. 5 - Prob. 5.20SE Ch. 5 - Prob. 5.21SE Ch. 5 - Prob. 5.22SE Ch. 5 - Analyze flow of costs through inventory T-accounts...Ch. 5 - Summarize physical units and compute equivalent...Ch. 5 - Prob. 5.25AE Ch. 5 - Prob. 5.26AE Ch. 5 - Continuation of E5-26A: Journal entries (Learning...Ch. 5 - Complete the production cost report in first...Ch. 5 - Prob. 5.29AE Ch. 5 - Analyze costs and gross profit in a process...Ch. 5 - Prob. 5.31AE Ch. 5 - Compute equivalent units and assign costs...Ch. 5 - Complete five-step procedure in first department...Ch. 5 - Sustainability and process costing (Learning...Ch. 5 - Complete five-step procedure and journalize result...Ch. 5 - Complete five-step procedure in second department...Ch. 5 - Exercises Group B E5-37B Analyze flow of costs...Ch. 5 - Summarize physical units and compute equivalent...Ch. 5 - Prob. 5.39BE Ch. 5 - Complete five-step procedure in first department...Ch. 5 - Prob. 5.41BE Ch. 5 - Prob. 5.42BE Ch. 5 - Prob. 5.43BE Ch. 5 - Prob. 5.44BE Ch. 5 - Record journal entries (Learning Objective 4)...Ch. 5 - Compute equivalent units and assign costs...Ch. 5 - Prob. 5.47BE Ch. 5 - Sustainability and process costing (Learning...Ch. 5 - Complete five-step procedure and journalize result...Ch. 5 - Complete five-step procedure in second department...Ch. 5 - Process costing in a single processing department...Ch. 5 - Process costing in a first department (Learning...Ch. 5 - Prob. 5.53AP Ch. 5 - Prepare a production cost report and journal...Ch. 5 - Prob. 5.55AP Ch. 5 - Process costing in a single processing department...Ch. 5 - Process costing in a first department (Learning...Ch. 5 - Prob. 5.58BP Ch. 5 - Prepare a production cost report and journal...Ch. 5 - Prob. 5.60BP Ch. 5 - Prob. 5.61SC Ch. 5 - Discussion Questions 1. What characteristics of...Ch. 5 - Prob. 5.63ACT Ch. 5 - Prob. 5.64ACT Ch. 5 - Process costing and hybrid costing issues...

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Solution Summary: The author describes the journal entry to transfer the cost of 160,000 liters completed and transferred out of the Filtration Department to the Bottling Department.

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