Fire Out Company manufactures its product, Vitadrink, through two manufacturing processes: Mixing and Packaging. All materials are entered at the beginning of each process On October 1, 2020, inventories consisted of Raw Materials $26,000, Work in Process-Mixing $0. Work in Process-Packaging $250,000, and Finished Goods $289,000. The beginning inventory for Packaging consisted of 10,000 units that were 50% complete as to conversion costs and fully complete as to materials. During October, 50,000 units were started into production in the Mixing Department, and the following transactions were completed.
- Purchased $300,000 of raw materials on account.
- Issued raw materials for production: Mixing $210,000 and Packaging $45,000
- Incurred labor costs of $278,900.
- Used factory labor: Mixing $182,500 and Packaging $96,400
- Incurred $810,000 of manufacturing overhead on account.
- Applied manufacturing overhead on the basis of $23 per machine hour. Machine hours were 28,0000 in Mixing and 6,000 in Packaging.
- Transferred 45,000 units from Mixing to Packaging at a cost of $979,000.
- Transferred 53,000 units from Packaging to Finished Goods at a cost of $1,315,000.
- Sold goods costing $1,604,000 for $2,500,000 on account.
Instruction
Journalize the October transactions.
Rosenthal Company manufactures bowling balls through two processes: Molding and packaging. In the molding Department, the urethane, rubber, and other materials are molded into bowling balls, In the packaging Department, the balls are placed in cartons and sent to the finished goods warehouse. All materials are entered at the beginning of each process. Labor and manufacturing overhead are incurred uniformly throughout each process. Production and cost data for the molding Department during June 2020 are presented below.
Instruction
- Prepare a schedule showing physical units of production.
- Determine the equivalent units of production for materials and conversation costs
- Compute the unit costs of production.
- Determine the costs to be assigned to the units transferred out and in process for June
- Prepare a prouction cost report for the Molding Department for the month of June
Thakin Industries Inc. manufactures dorm furniture in separate processes. In each process, materials are entered at the beginning, and conversion cost are incurred uniformly. Production and cost data for the first process in making two products in two different manufacturing plants are as follows.
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Rivera Company has several processing departments. Costs charged to the Assembly Department for November 2020 totaled $2,280,000 as follows.
Production records show that 35,000 units were in beginning work in process 30% complete as to conversion costs, 660,000 units were started into production, and 25,000 units were in ending work in process 40% complete as to conversion costs. Materials are entered at the beginning of each process.
Instruction
- Determine the equivalent units of production and the unit production costs for the Assembly Department.
- Determine the assignment of costs to goods transferred out and in process.
- Prepare a production cost report for the Assembly Department.
Polk Company manufactures basketballs. Materials are added at the beginning of the production process and conversion costs are incurred uniformly. Production and cost data for the month of July 2020 are as follows.
Instruction
- Calculate the following.
- The equivalent units of production for materials and conversion costs.
- The unit costs of production for materials and conversion costs
- The assignment of costs to units transferred out and in process at the end of the accounting period.
- Prepare a production cost report for the month of July for the basketballs
Hamilton processing Company uses a weighted average process cost system and manufactures a single product an industrial carpet shampoo and cleaner used by many universities. The manufacturing activity for the month of October has just been completed. A partially completed production cost report for the month of October for the Mixing and Cooking Department is shown below.
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Schultz Electronics manufactures two large-screen television models: the Royale which sells for $1,6000, and a new model, the Majestic, which sells for $1,300. the production cost computed per unit under traditional costing for each model in 2020 was as follows..
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Robert Wilkins has prepared the following list of statements about process cost accounting.
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Harrelson Company manufactures pizza sauce through two production departments: Cooking and Canning. In each process, materials and conversion costs are incurred evenly throughout the process. For the month of April, the work in process accounts show the following debits.
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The ledger of American Company has the following work in process account.
Production records show that there were 400 units in the beginning inventory, 30% complete, 1,600 units started, and 1,700 units transferred out. The beginning work in process had materials cost of $2,040 and conversion costs of $1,550. the units in ending inventory were 40% complete. Materials are entered at the beginning of the painting process.
Instruction
- How many units are in process at May 31?
- What is the unit materials cost for May?
- What is the unit conversion cost for May?
- What is the total cost of units transferred out in May?
- What is the cost of the May 31 inventory?