Managerial Accounting (5th Edition)
5th Edition
ISBN: 9780134128528
Author: Karen W. Braun, Wendy M. Tietz
Publisher: PEARSON
expand_more
expand_more
format_list_bulleted
Concept explainers
Textbook Question
Chapter 5, Problem 5.36AE
Complete five-step procedure in second department (Learning Objective 5)
Alpha Semiconductors experienced the following activity in its Photolithography Department during December. Materials are added at the beginning of the photolithography process.
Units: | |
Work in process, December 1 (80% of the way through the process) | 6,000 units |
Transferred in from the Polishing and Cutting Department during December | 29,000 units |
Completed during December | ? units |
Work in process, December 31 (70% of the way through the process) | 7,000 units |
Costs: | |
Work in process, December 1 (transferred-in costs, $21,600; direct materials costs, $20,350; and conversion costs, $27,690) | $69,640 |
Transferred in from the Polishing and Cutting Department during December | 97,400 |
Direct materials added during December | 63,650 |
Conversion costs added during December | 90,750 |
Requirements
- 1. Summarize flow of physical units and compute total equivalent units for three cost categories: transferred-in, direct materials, and conversion costs.
- 2. Summarize total costs to account for and compute the cost per equivalent unit for each cost category.
- 3. Assign total costs to (a) units completed and transferred to Finished Goods Inventory and (b) units in December 31 Work in Process Inventory.
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solutionStudents have asked these similar questions
S5-13 Find unit cost and gross profit on a final product (Learning Objective 5)
Counter Co. produces Formica countertops in two sequential production departments:
Forming and Polishing. The Polishing Department calculated the following costs per
equivalent unit (square feet) on its October production cost report:
Transferred-in
$2.44
Direct Materials Conversion Costs
$0.40
$1.66
Cost per equivalent unit:
During October, 165,000 square feet were completed and transferred out of the
Polishing Department to Finished Goods Inventory. The countertops were subsequently
sold for $13.00 per square foot.
1. What was the cost per square foot of the finished product?
2. Did most of the production cost occur in the Forming Department or in the Polishing
Department? Explain how you can tell where the most production cost occurred.
3. What was the gross profit per square foot?
4. What was the total gross profit on the countertops produced in October?
Required information
Use the following information for the Exercises below. (Algo)
Skip to question
[The following information applies to the questions displayed below.]The first production department of Stone Incorporated reports the following for April.
Units
Direct Materials
Conversion
Percent Complete
Percent Complete
Beginning work in process inventory
82,000
70%
30%
Units started this period
432,000
Completed and transferred out
410,000
Ending work in process inventory
104,000
85%
35%
Exercise 3-11A (Algo) FIFO: Costs assigned to output LO C2
The production department had the cost information below.
Beginning work in process inventory
Direct materials
$ 206,850
Conversion
35,490
$ 242,340
Costs added this period
Direct materials
1,512,630
Conversion
991,230
2,503,860
Total costs to account for
$ 2,746,200
(a) Calculate the costs per equivalent unit of production for both direct materials and conversion for the…
Process Costing
A department begins the month with 100 units at a cost of $7,500 and 25% complete in goods in process. An additional 1,000 units are started during the month and additional costs incurred are $12,500. At the end of the month, there are 200 units still in the process which are 50% complete. Using FIFO, the ending balance in the Work in Process Inventory is
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. 5QCCh. 5 - (Learning Objective 4) The journal entry needed to...Ch. 5 - (Learning Objective 4) A company has two...Ch. 5 - Prob. 8QCCh. 5 - Prob. 9QCCh. 5 - Prob. 10QC
Ch. 5 - Compare job costing and process costing (Learning...Ch. 5 - Prob. 5.2SECh. 5 - Prob. 5.3SECh. 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. 5.8SECh. 5 - Prob. 5.9SECh. 5 - Prob. 5.10SECh. 5 - Prob. 5.11SECh. 5 - Prob. 5.12SECh. 5 - Prob. 5.13SECh. 5 - Prob. 5.14SECh. 5 - Prob. 5.15SECh. 5 - Prob. 5.16SECh. 5 - Continuation of S5-16: Record journal entry and...Ch. 5 - Compute equivalent units in second department...Ch. 5 - Prob. 5.19SECh. 5 - Prob. 5.20SECh. 5 - Prob. 5.21SECh. 5 - Prob. 5.22SECh. 5 - Analyze flow of costs through inventory T-accounts...Ch. 5 - Summarize physical units and compute equivalent...Ch. 5 - Prob. 5.25AECh. 5 - Prob. 5.26AECh. 5 - Continuation of E5-26A: Journal entries (Learning...Ch. 5 - Complete the production cost report in first...Ch. 5 - Prob. 5.29AECh. 5 - Analyze costs and gross profit in a process...Ch. 5 - Prob. 5.31AECh. 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. 5.39BECh. 5 - Complete five-step procedure in first department...Ch. 5 - Prob. 5.41BECh. 5 - Prob. 5.42BECh. 5 - Prob. 5.43BECh. 5 - Prob. 5.44BECh. 5 - Record journal entries (Learning Objective 4)...Ch. 5 - Compute equivalent units and assign costs...Ch. 5 - Prob. 5.47BECh. 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. 5.53APCh. 5 - Prepare a production cost report and journal...Ch. 5 - Prob. 5.55APCh. 5 - Process costing in a single processing department...Ch. 5 - Process costing in a first department (Learning...Ch. 5 - Prob. 5.58BPCh. 5 - Prepare a production cost report and journal...Ch. 5 - Prob. 5.60BPCh. 5 - Prob. 5.61SCCh. 5 - Discussion Questions 1. What characteristics of...Ch. 5 - Prob. 5.63ACTCh. 5 - Prob. 5.64ACTCh. 5 - Process costing and hybrid costing issues...
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Similar questions
- Badgersize Company has the following information for its Forming Department for the month of August. Work in Process Inventory, August 1: 20,000 units Direct materials: 100% complete $ 80,000 Conversion: 20% complete 24,000 Balance in work in process, August 1 $ 104,000 Units started during August 47,000 Units completed and transferred in August 58,000 Work in process (70% complete), August 31 ? Costs charged to Work in Process in August Direct materials $ 161,000 Conversion costs: Direct labor $ 110,000 Overhead applied 135,000 Total conversion $ 245,000 Assume materials are added at the start of processing. Required: a. Calculate the equivalent units for the Forming Department for the month of August. b. Find the cost per equivalent unit of direct materials and conversion associated with the units transferred during the month. (Round your answers to 2 decimal places.)arrow_forwardUse the following information for the Exercises below. (Algo) [The following information applies to the questions displayed below.] The first production department of Stone Incorporated reports the following for April. Beginning work in process inventory Units started this period Completed and transferred out Ending work in process inventory Units 84,000 442,000 420,000 106, 000 Direct Materials Percent Complete 80% 80% Conversion Percent Complete 20% 30%arrow_forwardData for the two departments of Kimble & Pierce Company for June of the current fiscal year are as follows: Drawing Department Winding Department Work in process, June 1 10,000 units, 38% completed 4,000 units, 35% completed Completed and transferred to next processing department during June 60,000 units 60,500 units Work in process, June 30 11,500 units, 70% completed 3,500 units, 60% completed Production begins in the Drawing Department and finishes in the Winding Department. a. If all direct materials are placed in process at the beginning of production, determine the direct materials and conversion equivalent units of production for June for the Drawing Department. If an amount is zero, enter in "0". Drawing Department Direct Materials and Conversion Equivalent Units of Production For June Whole Units Direct MaterialsEquivalent Units ConversionEquivalent Units Inventory in process, June 1 fill in the blank 4661f10fcff7fec_1 fill in the…arrow_forward
- Required information Use the following information for the Exercises below. (Algo) [The following information applies to the questions displayed below.] The first production department of Stone Incorporated reports the following for April. Direct Materials Percent Complete 75% Conversion Percent Complete 25% Beginning work in process inventory Units started this period Completed and transferred out Ending work in process inventory Units 63,000 337,000 315,000 85,000 80% 30% Exercise 16-8 (Algo) Weighted average: Computing equivalent units of production LO P1 Compute the number of equivalent units of production for both direct materials and conversion for April using the weighted average method. X Answer is complete but not entirely correct. Equivalent units of production: Weighted average method Direct Materials Conversion Units Percent Complete Percent EUP EUP Complete Units started this period 315,000 100% 315,000 100% 315,000 Ending work in process 85,000 85% 72,250 35% X 29,750 X…arrow_forwardRequired information Use the following information for the Exercises below. (Algo) [The following information applies to the questions displayed below.] The first production department of Stone Incorporated reports the following for April. Direct Materials Percent Complete 75% Conversion Percent Complete 25% Units Beginning work in process inventory Units started this period Completed and transferred out Ending work in process inventory 63,000 337,000 315,000 85,000 80% 30% Exercise 16-8 (Algo) Weighted average: Computing equivalent units of production LO P1 Compute the number of equivalent units of production for both direct materials and conversion for April using the weighted average method. Equivalent units of production: Weighted average method Direct Materials Conversion Units Percent Percent EUP EUP Complete Complete Totalarrow_forward! Required information Use the following information for the Exercises below. (Algo) [The following information applies to the questions displayed below.] The first production department of Stone Incorporated reports the following for April. Direct Materials Units Beginning work in process inventory 70,000 Percent Complete 60% Conversion Percent Complete 40% Units started this period 372,000 Completed and transferred out 350,000 Ending work in process inventory 92,000 85% 35% Exercise 16-9 (Algo) Weighted average: Cost per equivalent unit; costs assigned to output and inventory LO P1 The production department had the cost information below. Beginning work in process inventory Direct materials Conversion Costs added this period Direct materials Conversion Total costs to account for $158,320 51,716 $ 210,036 1,062,050 750,904 1,812,954 $ 2,022,990 a. Compute cost per equivalent unit for both direct materials and conversion. Note: Round "Cost per EUP" to 2 decimal places. b. Using the…arrow_forward
- McCallum Tool Company has two departments, assembly and finishing. The assembly department takes purchased parts and assembles the final product. The finishing department performs testing, adds other materials, and packages the product. Direct materials are added at the end of the process in the finishing department. The following summarizes the finishing department's operations for the month of July. Number of Units Work-in-process, July 1, 50% complete for conversion costs Transferred in during July Completed during July Work-in-process, July 31, 50% complete for conversion costs 4,000 28,000 27,000 5,000 Costs Work-in-process, July 1 (transferred-in costs, $50,000; conversion costs, $30,125) Transferred in from assembly department during July Direct materials added during July Conversion added during July $ 80,125 150,000 60,750 110,000 $ 400,875 Total to account for Required: Calculate each of the following amounts for the finishing department using the weighted-average process…arrow_forwardFordman Company has a product that passes through two processes: Grinding and Polishing. During December, the Grinding Department transferred 20,000 units to the Polishing Department. The cost of the units transferred into the second department was 40,000. Direct materials are added uniformly in the second process. Units are measured the same way in both departments. The second department (Polishing) had the following physical flow schedule for December: Costs in beginning work in process for the Polishing Department were direct materials, 5,000; conversion costs, 6,000; and transferred in, 8,000. Costs added during the month: direct materials, 32,000; conversion costs, 50,000; and transferred in, 40,000. Required: 1. Assuming the use of the weighted average method, prepare a schedule of equivalent units. 2. Compute the unit cost for the month.arrow_forwardCity University uses a process cost system to accumulate costs incurred in handling student applications in the admissions department. When an application is completed, it is forwarded to the appropriate academic department for final processing. The following processing and cost data pertain to March. 1. Applications in process on March 1 250 2. Applications started in March 1,100 3. Completed applications during March 950 4. Applications still in process at March 31 were 100% complete as to materials (forms) and 75% complete as to conversion costs. Beginning WIP: Direct materials $ 2,125 Conversion costs 9,450 March costs: Direct materials $ 8,000 Direct labor…arrow_forward
- Use the following information to answer the next 2 questions: Henry Incorporated manufactures a high volume of identical flashlights called the Illumin-8. The company reported the following for the month of August: Physical Units Beginning work in process, August 1 18,000 Started during the August 90,000 Ending work in process, August 31 24,000 Materials are added at the beginning of the process. The beginning inventory was 60% complete with respect to conversion, and ending inventory was 90% complete with respect to conversion. 4. What is Henry's equivalent units for materials in August using the weighted average method? a. 84, 000. b. 90,000. c. 108, 000. d. 66,000. 5. What is Henry's equivalent units for conversion in August using the FIFO method? a. 98, 400. b. 94,800. c. 108, 000. d . 105,600.arrow_forwardBadgersize Company has the following information for its Forming Department for the month of August. Work in Process Inventory, August 1: 20,000 units Direct materials: 100% complete Conversion: 20% complete Balance in work in process, August 1 Units started during August Units completed and transferred in August Work in process (70% complete), August 31 Costs charged to Work in Process in August Direct materials Conversion costs: Direct labor Overhead applied Total conversion a. b. Assume materials are added at the start of processing. Required: a. Calculate the equivalent units for the Forming Department for the month of August. b. Find the cost per equivalent unit of direct materials and conversion associated with the units transferred during the month. (Round your answers to 2 decimal places.) Equivalent units Cost per equivalent unit Direct Materials $ 80,000 24,000 $ 104,000 48,000 60,000 ? Conversion $ 130,000 $ 105,000 149,000 $ 254,000arrow_forwardRequired Information Use the following information for the Exercises below. (Algo) [The following information applies to the questions displayed below.] The first production department of Stone Incorporated reports the following for April. Direct Materials Beginning work in process inventory Units started this period Completed and transferred out Ending work in process inventory Units started and completed Units 69,000 367,000 345,000 91,000 Equivalent units of production Percent Complete 80% 80% Exercise 16-10A (Algo) FIFO: Computing equivalent units of production LO C2 Units (a) Compute the number of units started and completed this period for the first production department. Equivalent units of production: FIFO method Direct Materials Percent Added Conversion TO Percent Complete (b) Compute the number of equivalent units of production for both direct materials and conversion for the first production depar for April using the FIFO method. 20% 30% EUP Conversion Percent Added EUP A:arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
- Cornerstones of Cost Management (Cornerstones Ser...AccountingISBN:9781305970663Author:Don R. Hansen, Maryanne M. MowenPublisher:Cengage Learning
Cornerstones of Cost Management (Cornerstones Ser...
Accounting
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Cengage Learning
Cost Accounting - Definition, Purpose, Types, How it Works?; Author: WallStreetMojo;https://www.youtube.com/watch?v=AwrwUf8vYEY;License: Standard YouTube License, CC-BY