EBK MANAGERIAL ACCOUNTING: THE CORNERST
7th Edition
ISBN: 9781337516150
Author: Heitger
Publisher: CENGAGE LEARNING - CONSIGNMENT
expand_more
expand_more
format_list_bulleted
Concept explainers
Videos
Textbook Question
Chapter 6, Problem 6MCQ
During the month of May, the grinding department produced and transferred out 2,300 units. EWIP had 500 units, 40% complete. There was no BWIP. The equivalent units of output for May are
- a. 2,000.
- b. 2,500.
- c. 2,300.
- d. 2,800.
- e. None of these.
Expert Solution & Answer
Trending nowThis is a popular solution!
Students have asked these similar questions
The costs of materials consumed in producing good units in the
Production Department of Jacobs Company were $38,000 and
$39,125 for June and July, respectively. The number of equivalent
units produced in June and July was 4,000 and 4,250,
respectively. Which of the following best describes the change in
the cost of materials between the two months?
Oa. The cost of materials increased by $1,125, indicating an unfavorable
change.
Ob. The cost of materials decreased by $0.29 per unit, indicating an
improvement.
C.
The cost of materials increased by $0.88 per unit, indicating an
unfavorable change.
d. The cost of materials increased by $0.28 per unit, indicating an
unfavorable change
Choose the right option
The costs of materials consumed in producing good units in the Production Department of Jacobs Company were $38,000 and $39,125 for June and July, respectively. The number of equivalent units produced in June and July was 4,000 and 4,250, respectively. Which of the following best describes the change in the cost of materials between the two months?
a.The cost of materials increased by $0.28 per unit, indicating an unfavorable change
b.The cost of materials decreased by $0.29 per unit, indicating an improvement.
c.The cost of materials increased by $0.88 per unit, indicating an unfavorable change.
d.The cost of materials increased by $1,125, indicating an unfavorable change.
Chapter 6 Solutions
EBK MANAGERIAL ACCOUNTING: THE CORNERST
Ch. 6 - Describe the differences between process costing...Ch. 6 - Prob. 2DQCh. 6 - What are the similarities in and differences...Ch. 6 - Prob. 4DQCh. 6 - How would process costing for services differ from...Ch. 6 - How does the adoption of a JIT approach to...Ch. 6 - What are equivalent units? Why are they needed in...Ch. 6 - Under the weighted average method, how are...Ch. 6 - Prob. 9DQCh. 6 - Prob. 10DQ
Ch. 6 - Prob. 11DQCh. 6 - How is the equivalent unit calculation affected...Ch. 6 - Prob. 13DQCh. 6 - Prob. 14DQCh. 6 - Process costing works well whenever a....Ch. 6 - Job-order costing works well whenever a....Ch. 6 - Prob. 3MCQCh. 6 - To record the transfer of costs from a prior...Ch. 6 - The costs transferred from a prior process to a...Ch. 6 - During the month of May, the grinding department...Ch. 6 - Use the following information for Multiple-Choice...Ch. 6 - Use the following information for Multiple-Choice...Ch. 6 - Use the following information for Multiple-Choice...Ch. 6 - During May, Kimbrell Manufacturing completed and...Ch. 6 - During June, Kimbrell Manufacturing completed and...Ch. 6 - For August, Kimbrell Manufacturing has costs in...Ch. 6 - For September, Murphy Company has manufacturing...Ch. 6 - During June, Faust Manufacturing started and...Ch. 6 - During July, Faust Manufacturing started and...Ch. 6 - Assume for August that Faust Manufacturing has...Ch. 6 - For August, Lanny Company had 25,000 units in...Ch. 6 - When materials are added either at the beginning...Ch. 6 - With nonuniform inputs, the cost of EWIP is...Ch. 6 - Transferred-in goods are treated by the receiving...Ch. 6 - Basic Cost Flows Gardner Company produces 18-ounce...Ch. 6 - Equivalent Units, No Beginning Work in Process...Ch. 6 - Unit Cost, Valuing Goods Transferred Out and EWIP...Ch. 6 - Weighted Average Method, Unit Cost, Valuing...Ch. 6 - Physical Flow Schedule Golding Inc. just finished...Ch. 6 - Production Report, Weighted Average Manzer Inc....Ch. 6 - Nonuniform Inputs, Weighted Average Carter Inc....Ch. 6 - Transferred-In Cost Powers Inc. produces a protein...Ch. 6 - Use the following information for Brief Exercises...Ch. 6 - Use the following information for Brief Exercises...Ch. 6 - Basic Cost Flows Hardy Company produces 18-ounce...Ch. 6 - Equivalent Units, No Beginning Work in Process...Ch. 6 - Unit Cost, Valuing Goods Transferred Out and EWIP...Ch. 6 - Weighted Average Method, Unit Cost, Valuing...Ch. 6 - Physical Flow Schedule Craig Inc. just finished...Ch. 6 - Production Report, Weighted Average Washburn Inc....Ch. 6 - Nonuniform Inputs, Weighted Average Ming Inc. had...Ch. 6 - Transferred-In Cost Vigor Inc. produces an energy...Ch. 6 - Use the following information for Brief Exercises...Ch. 6 - Use the following information for Brief Exercises...Ch. 6 - Basic Cost Flows Linsenmeyer Company produces a...Ch. 6 - Journal Entries, Basic Cost Flows In December,...Ch. 6 - Equivalent Units, Unit Cost, Valuation of Goods...Ch. 6 - Weighted Average Method, Equivalent Units Goforth...Ch. 6 - Cassien Inc. manufactures products that pass...Ch. 6 - Weighted Average Method, Unit Costs, Valuing...Ch. 6 - Physical Flow Schedule The following information...Ch. 6 - Physical Flow Schedule Nelrok Company manufactures...Ch. 6 - Production Report, Weighted Average Mino Inc....Ch. 6 - Nonuniform Inputs, Equivalent Units Terry Linens...Ch. 6 - Unit Cost and Cost Assignment, Nonuniform Inputs...Ch. 6 - Nonuniform Inputs, Transferred-In Cost Drysdale...Ch. 6 - Transferred-In Cost Goldings finishing department...Ch. 6 - (Appendix 6A) First-In, First-Out Method;...Ch. 6 - (Appendix 6A) First-In, First-Out Method; Unit...Ch. 6 - Basic Flows, Equivalent Units Thayn Company...Ch. 6 - Steps in Preparing a Production Report Recently,...Ch. 6 - Recently, Stillwater Designs expanded its market...Ch. 6 - Equivalent Units, Unit Cost, Weighted Average...Ch. 6 - Production Report Refer to the information for...Ch. 6 - Mimasca Inc. manufactures various holiday masks....Ch. 6 - Use the following information for Problems 6-62...Ch. 6 - Use the following information for Problems 6-62...Ch. 6 - Weighted Average Method, Separate Materials Cost...Ch. 6 - Seacrest Company uses a process-costing system....Ch. 6 - Required: 1. Using the FIFO method, prepare the...Ch. 6 - Benson Pharmaceuticals uses a process-costing...Ch. 6 - (Appendix 6A) First-In, First-Out Method Refer to...Ch. 6 - Golding Manufacturing, a division of Farnsworth...Ch. 6 - AKL Foundry manufactures metal components for...Ch. 6 - Consider the following conversation between Gary...
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
- Ada Clothes Company produced 40,000 units during April. The Cutting Department used 12,800 direct labor hours at an actual rate of 16.50 per hour. The Sewing Department used 19,600 direct labor hours at an actual rate of 19.25 per hour. Assume there were no work in process inventories in either department at the beginning or end of the month. The standard labor rate is 18.00. The standard labor time for the Cutting and Sewing departments is 0.3 hour and 0.5 hour per unit, respectively. a. Determine the direct labor rate, direct labor time, and total direct labor cost variance for the (1) Cutting Department and (2) Sewing Department. b. Interpret your results.arrow_forwardFlexer Company Ltd has set the following standards for the production of one unit of product. Normal production each month is 500 units. Direct Material 8 lbs at $6.50 per lb $52 Direct Labour 4 hours at $7.00 per hour $28 During June, actual production amounted to 420 units. All direct material was purchased and used this month. The actual cost amounted to: Direct Material 3,500 lbs $21,875 Direct labor: 1,720 hours 12,212 1) the direct material quantity variance for June production is calculated to be: a. $35 U b. $875 U c. $910 U d. $875 F E. $3,250 Farrow_forward3. Lens Junction has required production of 15,400 units in January and 18,100 in February. Each lens consists of 30 minutes of direct labor at a labor rate of $18 per hour. PLEASE NOTE: Units are rounded to whole numbers with commas as needed (i.e. 1,234) - no labels. All dollar amounts are rounded to whole dollars and shown with "$" and commas as needed (i.e. $12,345), except for any "per" amounts (units or dollars), which are rounded to two decimal places and shown with "$" and commas as needed (i.e. $1,234.56) - no labels. Labor Cost per Hour Desired Ending Inventory DLH per Unit Units to be Produced Hours Needed for Production Required DL Hours Beginning Inventory Total Cost of DL Total DL Required Using the information above, along with the terms above, prepare a direct labor budget Lens Junction Direct Labor Budget For the Two Months Ending Feb, 28, 2019 X January February ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? Total DL Budget…arrow_forward
- Miller Toy Company manufactures a plastic swimming pool at its Westwood Plant. The plant has been experiencing problems as shown by its June contribution format income statement below. Flexible Budget Actual $ 250, 000 $250, 000 Sales (3,000 pools) Variable expenses: Variable cost of goods sold Variable selling expenses Total variable expenses Contribution margin 67,000 53,430 26,000 79,430 170, 570 26,000 93,000 157,000 Fixed expenses: Manufacturing overhead Selling and administrative Total fixed expenses Net operating income (loss) 67,000 92,000 159,000 $ 11,570 S (2,000) 67,800 92, e00 159,000 "Contains direct materials, direct.labor, and variable manufacturing overhead. Janet Dunn, who has just been appointed general manager of the Westwood Plant, has been given instructions to "get things under control." Upon reviewing the plant's income statement, Ms. Dunn has concluded that the major problem liles in the variable cost of goods sold. She has been provided with the following…arrow_forwardDeshery Company makes small metal containers. The company began October with 300 containers in process that were 35 percent complete as to material and 45 percent complete as to conversion costs. During the month, 6,000 containers were started. At month end, 1,900 containers were still in process (40 percent complete as to material and 75 percent complete as to conversion costs). Using the weighted average method, what are the equivalent units for conversion costs? * a. 4,265b. 5,590c. 5,825d. 6,300arrow_forwardRavena Labs., Incorporated makes a single product which has the following standards: Direct materials: 2.5 ounces at $20 per ounce Direct labor: 1.4 hours at $12.50 per hour Variable manufacturing overhead: 1.4 hours at 3.50 per hour Variable manufacturing overhead is applied on the basis of standard direct labor-hours. The following data are available for October: 3,750 units of compound were produced during the month. • There was no beginning direct materials inventory. • Direct materials purchased: 12,000 ounces for $225,000. • The ending direct materials inventory was 2,000 ounces. • Direct labor-hours worked: 5,600 hours at a cost of $67,200. ● • Variable manufacturing overhead costs incurred amounted to $18,200. • Variable manufacturing overhead applied to products: $18,375. The variable overhead rate variance for October is:arrow_forward
- Pattison Products, Inc., began operations in October and manufactured 48,000 units during the month with the following unit costs: Direct materials $5.10 Direct labor 3.10 Variable overhead 1.55 Fixed overhead* 7.10 Variable marketing cost 1.25 * Fixed overhead per unit = $340,800 / 48,000 units produced = $7.10 Total fixed factory overhead is $340,800 per month. During October, 47,000 units were sold at a price of $27.25, and fixed marketing and administrative expenses were $130,800. Required: Question Content Area 1. Calculate the cost of each unit using variable costing. Round your final answer to the nearest cent. 2. How many units remain in ending inventory? 3. What is the cost of ending inventory using variable costing? 4. Prepare a variable-costing income statement for Pattison Products, Inc., for the month of October. Pattison Products, Inc.Variable-Costing Income StatementFor the Month of October $- Select - Less: - Select - -…arrow_forwardMinty Inc. has one production process and produces only one product. During the month of June, the company started 25,600 units. The company began June with 14,400 units in work in process, which were 35% complete with respect to conversion costs. At the end of June, the company had 12,300 units in ending work in process, which were 40% complete with respect to conversion costs. What was the number of equivalent whole units for conversion costs in June, assuming the company uses the weighted average method of process costing? а. 32,620 b. 40,000 c. 27,700 d. 27,580 е. 23,260 f. 35,080 g. 30,520 h. None of the abovearrow_forwardXin Co., had 3,000 units of work in process on April 1 that were 60% complete. During April, 10,000 units were completed and as of April 30o, 4,000 units that were 40% complete remained in production. How many units were started during April? 8,600. 9,800. 11,000. 12,200. None of the answers is correct.arrow_forward
- The manufacturing costs of Mocha Industries for three months of the year are as follows: April May June Total Cost $54,546 57,092 61,082 Production 1,670 Units 2,340 3,390 a. Using the high-low method, determine the variable cost per unit. Round your answer to two decimal places. $ per unit b. Using the high-low method, determine the total fixed costs. $arrow_forwardPattison Products, Inc., began operations in October and manufactured 56,000 units during the month with the following unit costs: Direct materials $7.00 Direct labor 5.00 Variable overhead 2.50 Fixed overhead* 9.00 Variable marketing cost 2.20 * Fixed overhead per unit = $504,000 / 56,000 units produced = $9 Total fixed factory overhead is $504,000 per month. During October, 53,800 units were sold at a price of $30.50, and fixed marketing and administrative expenses were $115,100. Required: Question Content Area 1. Calculate the cost of each unit using absorption costing. Round your final answer to the nearest cent. 2. How many units remain in ending inventory? 3. What is the cost of ending inventory using absorption costing? 4. Prepare an absorption-costing income statement for Pattison Products, Inc., for the month of October. Pattison Products, Inc.Absorption-Costing Income StatementFor the Month of October $- Select - - Select - Gross…arrow_forwardQueen Industries uses a standard costing system in the manufacturing of its single product. It requires 3 hours of labor to produce 1 unit of final product. In February, Queen Industries produced 12,000 units. The standard cost for labor allowed for the output was $126,000, and there was an unfavorable direct labor time variance of $5,152. A. What was the standard cost per hour? Round your answer to two decimal places. B.How many actual hours were worked? C.If the workers were paid $3.60 per hour, what was the direct labor rate variance? Round your answer to two decimal places. Enter the amount as positive number.arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
Managerial Accounting: The Cornerstone of Busines...AccountingISBN:9781337115773Author:Maryanne M. Mowen, Don R. Hansen, Dan L. HeitgerPublisher:Cengage Learning
Managerial AccountingAccountingISBN:9781337912020Author:Carl Warren, Ph.d. Cma William B. TaylerPublisher:South-Western College Pub
Managerial Accounting: The Cornerstone of Busines...
Accounting
ISBN:9781337115773
Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:Cengage Learning
Managerial Accounting
Accounting
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:South-Western College Pub
Cost Accounting - Definition, Purpose, Types, How it Works?; Author: WallStreetMojo;https://www.youtube.com/watch?v=AwrwUf8vYEY;License: Standard YouTube License, CC-BY