Principles of Accounting Volume 2
19th Edition
ISBN: 9781947172609
Author: OpenStax
Publisher: OpenStax College
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Textbook Question
Chapter 5, Problem 11PB
Production information shows these costs and units for the smoothing department in August.
What is the value of the inventory transferred out to finished goods and the value of the WIP inventory at the end of the month, assuming conversion costs are 30% complete?
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Students have asked these similar questions
What was the total cost of the units started and complete in July?
Information for the Hi-Test company’s production process for September in the attached picture. Assume that all materials are added at the beginning of this production process, and that conversion costs are added uniformly throughout the process.
Compute each of the following.
The variable cost per equivalent unit for conversion for the month.
The total variable cost of goods transferred out.
The total variable cost of ending work in process inventory.
In Wildhorse Company, materials are entered at the beginning of each process, and conversion costs are incurred uniformly
throughout the process. Work in process inventories, with the percentage of work done on conversion costs, and production data
for its Sterilizing Department in selected months during 2022 are as follows.
Beginning
Ending
Work in Process
Work in Process
Conversion
Units Completed and
Conversion
Month
Units
Cost%
Transferred Out
Units
Cost%
January
14.300
2,600
60
March
15,600
3,900
30
May
18.200
9,100
80
July
13,000
1,700
40
(a)
Your answer is correct.
For January and May, compute the physical units to be accounted for and the physical units accounted for.
January
May
Units to be accounted for
Beginning work in process
i
i
Started into production
16900
27300
Total units
16900
27300
Units accounted for
Transferred out
14300
18200
Ending work in process
2600
9100
Total units
16900
27300
|| ||
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Chapter 5 Solutions
Principles of Accounting Volume 2
Ch. 5 - Which of the following production characteristics...Ch. 5 - A process costing system Is most likely used by...Ch. 5 - Which of the following is a prime cost? A. direct...Ch. 5 - Which of the following is a conversion cost? A....Ch. 5 - During production, how are the costs in process...Ch. 5 - Which is nor needed to compute equivalent units of...Ch. 5 - What is the cost of direct labor f the conversion...Ch. 5 - What is the conversion cost to manufacture...Ch. 5 - Which of the following lists contains only...Ch. 5 - Direct material costs $3 per unit, direct labor...
Ch. 5 - Beginning inventory and direct material cost added...Ch. 5 - The initial processing department had a beginning...Ch. 5 - There were 1,000 units in ending inventory after...Ch. 5 - The costs to be accounted for consist of which of...Ch. 5 - Which of the following is the step in which...Ch. 5 - The journal entry to record the $500 of work in...Ch. 5 - Assigning indirect costs to departments is...Ch. 5 - In a process costing system, which account shows...Ch. 5 - In a process cost system, factory depreciation...Ch. 5 - Explain how process costing differs from job order...Ch. 5 - Would a pharmaceutical manufacturer use process or...Ch. 5 - Which costs are assigned using the...Ch. 5 - What is the primary purpose of process costing?Ch. 5 - What is the difference between prime costs and...Ch. 5 - Explain conversion costs using an example.Ch. 5 - Why are there conversion costs in both job order...Ch. 5 - What are equivalent units of production, and how...Ch. 5 - How can there be a different number of equivalent...Ch. 5 - Why is the number of equivalent units for...Ch. 5 - What are the four steps involved in determining...Ch. 5 - What is the weighted-average method for computing...Ch. 5 - How does process costing treat the costs...Ch. 5 - Why does each department have its own work in...Ch. 5 - March each term with its description.Ch. 5 - How is manufacturing overhead handled in a process...Ch. 5 - How are predetermined overhead rates used in...Ch. 5 - How many units were started into production in a...Ch. 5 - A company started a new product, and in the first...Ch. 5 - Given the following information, determine the...Ch. 5 - There were 1,700 units in beginning inventory that...Ch. 5 - A company has 1,500 units in ending work in...Ch. 5 - There were 2,400 units in ending work in process...Ch. 5 - How many units must be in ending inventory if...Ch. 5 - How many units must have been completed and...Ch. 5 - Using the weighted-average method, compute the...Ch. 5 - Using the weighted-average method, compute the...Ch. 5 - Mazomanie Farm completed 20,000 units during the...Ch. 5 - What are the total costs to account for if a...Ch. 5 - A company started the month with 8,329 units in...Ch. 5 - A production department within a company received...Ch. 5 - Production data show 35,920 units were transferred...Ch. 5 - Overhead is assigned to the manufacturing...Ch. 5 - Prepare the journal entry to record the factory...Ch. 5 - Prepare the journal entry to record the transfer...Ch. 5 - Prepare the journal entry to record the sale of...Ch. 5 - Given the following information, determine the...Ch. 5 - There were 2.000 units in beginning inventory that...Ch. 5 - A company has 100 units in ending work in process...Ch. 5 - There were 1,500 units in ending work in process...Ch. 5 - Using the weighted-average method, compute the...Ch. 5 - What are the total costs to account for if a...Ch. 5 - A company started the month with 4,519 units in...Ch. 5 - A production department within a company received...Ch. 5 - Production data show 15,200 units were transferred...Ch. 5 - Overhead is assigned to the manufacturing...Ch. 5 - Prepare the journal entry to record the factory...Ch. 5 - Prepare the journal entry to record the transfer...Ch. 5 - Prepare the journal entry to record the sale of...Ch. 5 - The following product Costs are available for...Ch. 5 - The following product costs are available for...Ch. 5 - Pant Risers manufactures bands for self-dressing...Ch. 5 - During March, the following costs were charged to...Ch. 5 - Materials are added at the beginning of a...Ch. 5 - Narwhal Swimwear has a beginning work in process...Ch. 5 - The following data show the units in beginning...Ch. 5 - The finishing department started the month with...Ch. 5 - The packaging department began the month with 500...Ch. 5 - Production information shows these costs and units...Ch. 5 - Given the following information, prepare a...Ch. 5 - Complete this production cost report:Ch. 5 - Selected information from Skylar Studios shows the...Ch. 5 - Loanstar had 100 units in beginning inventory...Ch. 5 - The following product costs are available for...Ch. 5 - The following product costs are available for...Ch. 5 - Vexar manufactures nails. Manufacturing is a...Ch. 5 - During March, the following costs were charged to...Ch. 5 - Ardt-Barger has a beginning work in process...Ch. 5 - The following data show the units in beginning...Ch. 5 - The following data show the units in beginning...Ch. 5 - The following data show the units in beginning...Ch. 5 - The finishing department started the month with...Ch. 5 - The packaging department began the month with 750...Ch. 5 - Production information shows these costs and units...Ch. 5 - Given the following information, prepare a...Ch. 5 - Selected information from Hernandez Corporation...Ch. 5 - Rexar had 1,000 units in beginning inventory...Ch. 5 - How would process costing exist in a service...Ch. 5 - Why are labor and manufacturing overhead grouped...Ch. 5 - How is process costing for a single manufacturing...Ch. 5 - What is different between the journal entries for...
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- Production information shows these costs and units for the smoothing department in August. All materials are added at the beginning of the period. The ending work in process is 30% complete as to conversion. What is the value of the inventory transferred to finished goods and the value of the WIP inventory at the end of the month?arrow_forwardCompute the equivalent production (unit output) for the month for each of the following situations:arrow_forwardInformation for the Hi-Test company’s production process for September in the attached picture. Assume that all materials are added at the beginning of this production process, and that conversion costs are added uniformly throughout the process. Compute each of the following. The number of equivalent units for materials for the month. The number of equivalent units for conversion for the month. The variable cost per equivalent unit of materials for the month.arrow_forward
- Prepare a cost of production, presenting the following computations: A. 1. Direct materials and conversion equivalent units of production for August. 2. Direct materials and conversion costs per equivalent unit for August. 3. Cost of goods finished during August 4.Cost of work in process at August 31 B. Commute and evaluate the change in cost per equivalent unit for direct materials and conversion from the previous month (July)arrow_forwardhow do you define prime costs? conversion costs? The following costs were incurred in July: Direct Materials $39,500 Direct Labor $30, 400 Manufacturing Overhead $28, 900 Selling Expenses $26, 500 Administrative Expenses $35, 800 What are total conversion costs during the month of July?arrow_forwardRequired: Compute for the cost transferred to finished goods Compute the equivalent unit production for august.arrow_forward
- Computing the cost per EUP, second department The Finishing Department reports the following data for the month: Calculate the cost per equivalent units of production for each input. The company uses the weighted-average method.arrow_forwardAt the end of the month, approximately what percentage complete will gummy bears be with respect to direct materials?arrow_forwardWhat are the total units required for production for the month of Marcharrow_forward
- Compute the unit costs for conversion cost for the month of September.arrow_forwardIn order to sumarize production fr the past month both broken down by the number of each type of widget produced by each divisin, as well as the total number of each type of widget produced and the total production for each division, you would usearrow_forwardWhy might the total number of units completed during a month plus the number of units in process at the end of a month be less than the total number of units in process at the beginning of the month plus the number of units placed in process during the month?arrow_forward
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