Schrager Company has two production departments: Cutting and Assembly. July 1 inventories are Raw Materials $4,200, Work in process Cutting $2,900, Work in process Assembly $10,600, and Finished Goods $31,000. During July, the following transactions occurred.
- Purchased $62,500 of raw materials on account.
- Incurred $60,000 of factory labor. (Credit Wages Payable.)
- Incurred $70,000 of manufacturing overhead: $40,000 was paid and the remainder is unpaid.
- Requisitioned materials for Cutting $15,700 and Assembly $8,900
- Used factory labor for Cutting $33,000 and Assembly $27,000
- Applied overhead at the rate of $18 per machine hour. Machine hours were Cutting 1,680 and Assembly 1,720
- Transferred goods costing $134,900 from Assembly to Finished Goods.
- Sold goods costing $150,000 for $200,000 on account.
Instruction
Journalize the transactions. (Omit explanations.)
In Shady Company, materials are entered at the beginning of each 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 2020 are as follows.
Instruction
- Compute the physical units for January and May.
- Compute the equivalent units of production for (1) materials and (2) conversion cost data for each month.
The Cutting Department of Cassel company has the following production and cost data for July.
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The Sanding Department of Quik Furniture Company has the following production and manufacturing cost data for March 2020, the first month of operation.
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The Blending Department of Luongo Company has the following cost and production data for the month of April.
| Costs: | |
| Work in process, April 1: | |
Direct materials: 100% complete Conversion costs: 20% complete |
$100,000 70,000 |
Cost of work in process. April 1 | $100,000 |
| Costs incurred during production in April | |
Direct materials Conversion costs |
$800,000 365,000 |
Costs incurred in April | $1,165,000 |
Units transferred out totaled 17,000. Ending work in process was 1,000 units that are 100% complete as to materials and 405 complete as to conversion costs.
Baden Company has gathered the following information.
Instruction
- Compute equivalent units of production for materials and for conversion costs.
- Determine the unit costs of production.
- Show the assignment of costs to units transferred out and in process
Overton Company has gathered the following information.
Instructions
- Compute equivalent units of production for materials and for conversion costs.
- Determine the unit costs of production.
- Show the assignment of costs to units transferred out and in process
The polishing Department of Major company has the following production and manufacturing cost data for September. Materials are entered at the beginning of the process.
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David Skaros has recently been promoted to production manager. He has just started to receive various material reports, including the production cost report that you prepared. It showed that this department had 2,000 equivalent units in ending inventory. His department has had a history of not keeping enough inventory on hand to meet demand. He has come to you, very angry, and wants to know why you credited him with only 2,000 units when he knows he had at least twice that many on hand.
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The Welding Department of Healthy Company has the following production and manufacturing cost data for February 2020. All materials are added at the beginning of the process.
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