Managerial Accounting, Student Value Edition (5th Edition)

5th Edition

ISBN: 9780134067179

Author: Karen W. Braun, Wendy M. Tietz

Publisher: PEARSON

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Textbook Question

Chapter 5, Problem 5.23AE

Analyze flow of costs through inventory T-accounts (Learning Objective 1)

Golden Sun Bakery mass-produces bread using three sequential processing departments: Mixing, Baking, and Packaging. The following transactions occurred during April:

1. Direct materials used in the Packaging Department	$ 34,000
2. Costs assigned to units completed and transferred out of Mixing	$227,000
3. Direct labor incurred in the Mixing Department	$ 11,400
4. Beginning balance: Work in Process Inventory—Baking	$15,800
5 Manufacturing overhead allocated to the Baking Department	$ 78,000
6. Beginning balance: Finished Goods	$ 4,600
7 Costs assigned to units completed and transferred out of Baking	$308,000
8. Beginning balance: Work in Process Inventory—Mixing	$ 12,100
9. Direct labor incurred in the Packaging Department	$ 8,900
10. Manufacturing overhead allocated to the Mixing Department	$68,000
11. Direct materials used in the Mixing Department	$156,000
12. Beginning balance: Raw Materials Inventory	$ 23,200
13. Costs assigned to units completed and transferred out of Packaging	$385,000
14. Beginning balance: Work in Process Inventory—Packaging	$ 8,000
15. Purchases of Raw Materials	$179,000
16. Direct labor incurred in the Baking Department	$4,200
17. Manufacturing overhead allocated to the Packaging Department	$40,000
18. Cost of goods sold	$386,000

Note: No direct materials were used by the Baking Department.

Requirements

1. Post each of these transactions to the company’s inventory T-accounts. You should set up separate T-accounts for the following:
- Raw Materials Inventory
- Work in Process Inventory—Mixing Department
- Work in Process Inventory—Baking Department
- Work in Process Inventory—Packaging Department
- Finished Goods Inventory
2. Determine the balance at month end in each of the inventory accounts.
3. Assume that 3,025,000 loaves of bread were completed and transferred out of the Packaging Department during the month. What was the cost per unit of making each loaf of bread (from start to finish)?

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Chapter 5, Problem 5.22SE

Chapter 5, Problem 5.24AE

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Chapter 5 Solutions

Managerial Accounting, Student Value Edition (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 explains how to set up T-accounts for the following: Raw Materials Inventory Work in Process Inventory- Mixing Department, Baking department, and Finished Goods Inventory.

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