Beginning work in process units –0– Units started into production 50,000 Ending work in process units 2,500 Percent complete—ending inventory 40% Materials $510,000 Labor 92,500 Overhead
Trang 1CHAPTER 3—PROBLEMS: SET B
P3-1B Wilbury Company manufactures a nutrient, Everlife, through two manufacturing
processes: Blending and Packaging All materials are entered at the beginning of each
pro-cess On August 1, 2014, inventories consisted of Raw Materials $5,000, Work in Process—
Blending $0, Work in Process—Packaging $3,945, and Finished Goods $7,500 The
begin-ning inventory for Packaging consisted of 500 units, two-fi fths complete as to conversion
costs and fully complete as to materials During August, 9,000 units were started into
production in Blending, and the following transactions were completed
1 Purchased $25,000 of raw materials on account
2 Issued raw materials for production: Blending $18,930 and Packaging $9,140
3 Incurred labor costs of $25,770
4 Used factory labor: Blending $15,320 and Packaging $10,450
5 Incurred $36,500 of manufacturing overhead on account
6 Applied manufacturing overhead at the rate of $28 per machine hour Machine hours
were Blending 900 and Packaging 300
7 Transferred 8,200 units from Blending to Packaging at a cost of $44,940
8 Transferred 8,600 units from Packaging to Finished Goods at a cost of $67,490
9 Sold goods costing $62,000 for $90,000 on account
Instructions
Journalize the August transactions
P3-2B Steiner Corporation manufactures water skis through two processes: Molding
and Packaging In the Molding Department, fi berglass is heated and shaped into the
form of a ski In the Packaging Department, the skis are placed in cartons and sent to
the fi nished goods warehouse Materials are entered at the beginning of both processes
Labor and manufacturing overhead are incurred uniformly throughout each process
Production and cost data for the Molding Department for January 2014 are presented
below
Beginning work in process units –0–
Units started into production 50,000 Ending work in process units 2,500 Percent complete—ending inventory 40%
Materials $510,000 Labor 92,500 Overhead 150,000
Instructions
(a) Compute the physical units of production
(b) Determine the equivalent units of production for materials and conversion costs
(c) Compute the unit costs of production
(d) Determine the costs to be assigned to the units transferred out and in process
(e) Prepare a production cost report for the Molding Department for the month of January
P3-3B Borman Corporation manufactures in separate processes refrigerators and freezers
for homes In each process, materials are entered at the beginning and conversion costs
are incurred uniformly Production and cost data for the fi rst process in making two
prod-ucts in two different manufacturing plants are as follows
Journalize transactions.
(LO 3, 4), AP
Complete four steps necessary
to prepare a production cost report.
(LO 5, 6, 7), AP
Complete four steps necessary
to prepare a production cost report.
(LO 5, 6, 7), AP
(c) Materials $10.20
CC $5 (d) Transferred out $722,000 WIP $ 30,500
P-1
Trang 2P-2 Problems: Set B
Work in process, June 1 $ –0– $ –0–
Instructions
(a) For each plant:
(1) Compute the physical units of production
(2) Compute equivalent units of production for materials and for conversion costs
(3) Determine the unit costs of production
(4) Show the assignment of costs to units transferred out and in process
(b) Prepare the production cost report for Plant A for June 2014
P3-4B Luxman Company has several processing departments Costs charged to the Assembly Department for October 2014 totaled $1,298,400 as follows
Work in process, October 1
Conversion costs 16,500 $ 45,500
Production records show that 25,000 units were in beginning work in process 40% com-plete as to conversion cost, 435,000 units were started into production, and 35,000 units were in ending work in process 40% complete as to conversion costs Materials are entered
at the beginning of each process
Instructions
(a) Determine the equivalent units of production and the unit production costs for the Assembly Department
(b) Determine the assignment of costs to goods transferred out and in process
(c) Prepare a production cost report for the Assembly Department
P3-5B Swinn Company manufactures bicycles Materials are added at the beginning of the production process, and conversion costs are incurred uniformly Production and cost data for the month of May are as follows
Units started in production 2,000
Work in process, May 1 Materials $15,000
(b) Transferred out $1,211,250
WIP $ 87,150
Assign costs and prepare
production cost report.
(LO 5, 6, 7), AP
(a) (3) R12:
Materials $42
CC $35
(4) R12:
Transferred
out $1,232,000
WIP $ 273,000
Determine equivalent units
and unit costs and assign
costs.
(LO 5, 6, 7), AP
Trang 3Problems: Set B P-3
Instructions
(a) Calculate the following
(1) The equivalent units of production for materials and conversion
(2) The unit costs of production for materials and conversion costs
(3) The assignment of costs to units transferred out and in process at the end of the
accounting period
(b) Prepare a production cost report for the month of May for the bicycles
P3-6B Venuchi Cleaner Company uses a weighted-average process cost system and
manu-factures a single product—an all-purpose liquid cleaner The manufacturing activity for
the month of March has just been completed A partially completed production cost report
for the month of March for the mixing and blending department is shown below
Venuchi Cleaner Company Mixing and Blending Department Production Cost Report For the Month Ended March 31
Units to be accounted for
Work in process, March 1 10,000
Started into production 76,000
Units accounted for
Work in process, March 31
(60% materials, 20%
Costs to be accounted for
Conversion
Costs accounted for
Work in process, March 31
Instructions
(a) Prepare a schedule that shows how the equivalent units were computed so that you
can complete the “Quantities: Units accounted for” equivalent units section shown in
the production cost report above, and compute March unit costs
(b) Complete the “Cost Reconciliation Schedule” part of the production cost report above
Compute equivalent units and complete production cost report.
(LO 5, 7), AP
(2) Materials $26
CC $35 (3) Transferred out $103,700 WIP $ 32,000
(a) Materials $2.00 (b) Transferred out $224,400 WIP $ 29,600
Trang 4P-4 Problems: Set B
*P3-7B Holiday Company manufactures basketballs and soccer balls For both products,
materials are added at the beginning of the production process and conversion costs are incurred uniformly Holiday uses the FIFO method to compute equivalent units Produc-tion and cost data for the month of August are shown below
Instructions
(a) Calculate the following for both the basketballs and the soccer balls
(1) The equivalent units of production for materials and conversion costs
(2) The unit costs of production for materials and conversion costs
(3) The assignment of costs to units transferred out and in process at the end of the accounting period
(b) Prepare a production cost report for the month of August for the basketballs only
Work in process units, August 1 500 60%
Units started into production 2,000
Work in process units, August 31 600 50%
Work in process, August 1 $1,125
Direct labor 1,280
Manufacturing overhead 1,000
Work in process units, August 1 200 80%
Units started into production 2,000 Work in process units, August 31 150 70%
Cost Data—Soccer Balls
Work in process, August 1 $ 450
Manufacturing overhead 1,394
Determine equivalent units
and unit costs and assign
costs for processes; prepare
production cost report.
(LO 8), AP
(a) Basketballs:
(1) Materials 2,000
(2) Materials $.80
(3) Transferred out $4,165
WIP $840