Problem 20-1A Production cost flow and measurement; journal entries L.O. P1, P2, P3, P4
[The following information applies to the questions displayed below.]
| Edison Company manufactures wool blankets and accounts for product costs using process costing. The following information is available regarding its May inventories. |
| Beginning Inventory | Ending Inventory | |||||
| Raw materials inventory | $ | 60,000 | $ | 41,000 | ||
| Goods in process inventory | 449,000 | 521,500 | ||||
| Finished goods inventory | 610,000 | 342,001 | ||||
| The following additional information describes the company’s production activities for May. |
| Raw materials purchases (on credit) | $ | 250,000 | |
| Factory payroll cost (paid in cash) | 1,850,300 | ||
| Other overhead cost (Other Accounts credited) | 82,000 | ||
| Materials used | |||
| Direct | $ | 200,500 | |
| Indirect | 50,000 | ||
| Labor used | |||
| Direct | $ | 1,060,300 | |
| Indirect | 790,000 | ||
| Overhead rate as a percent of direct labor | 115 | % | |
| Sales (on credit) | $ | 3,000,000 | |
| The predetermined overhead rate was computed at the beginning of the year as 115% of direct labor cost. |
\\\\\ rev: 11_02_2011
references
1.
value: 2.00 points
Problem 20-1A Part 1
| Required: | |
| 1(a) | Compute the cost of products transferred from production to finished goods. (Omit the “$” sign in your response.) |
| Cost of products transferred | $ |
| 1(b) | Compute the cost of goods sold. (Omit the “$” sign in your response.) |
| Cost of goods sold | $ |
rev: 10_31_2011
check my work eBook Links (4) references
2.
value: 5.00 points
Problem 20-1A Part 2
| 2(a) | Prepare journal entry dated May 31 to record the raw materials purchases. (Omit the “$” sign in your response.) |
| Date | General Journal | Debit | Credit |
| May 31 | |||
| 2(b) | Prepare journal entry dated May 31 to record the direct materials usage. (Omit the “$” sign in your response.) |
| Date | General Journal | Debit | Credit |
| May 31 | |||
| 2(c) | Prepare journal entry dated May 31 to record the indirect materials usage. (Omit the “$” sign in your response.) |
| Date | General Journal | Debit | Credit |
| May 31 | |||
| 2(d) | Prepare journal entry dated May 31 to record the payroll costs. (Omit the “$” sign in your response.) |
| Date | General Journal | Debit | Credit |
| May 31 | |||
| 2(e) | Prepare journal entry dated May 31 to record the direct labor costs. (Omit the “$” sign in your response.) |
| Date | General Journal | Debit | Credit |
| May 31 | |||
| 2(f) | Prepare journal entry dated May 31 to record the indirect labor costs. (Omit the “$” sign in your response.) |
| Date | General Journal | Debit | Credit |
| May 31 | |||
| 2(g) | Prepare journal entry dated May 31 to record the other overhead costs. (Omit the “$” sign in your response.) |
| Date | General Journal | Debit | Credit |
| May 31 | |||
| 2(h) | Prepare journal entry dated May 31 to record the overhead applied. (Omit the “$” sign in your response.) |
| Date | General Journal | Debit | Credit |
| May 31 | |||
| 2(i) | Prepare journal entry dated May 31 to record the goods transferred from production to finished goods.(Omit the “$” sign in your response.) |
| Date | General Journal | Debit | Credit |
| May 31 | |||
| 2(j) | Prepare journal entry dated May 31 to record the sale of finished goods. (Omit the “$” sign in your response.) |
| Date | General Journal | Debit | Credit |
| May 31 | |||
| Fairfax Company uses weighted-average process costing to account for its production costs. Direct labor is added evenly throughout the process. Direct materials are added at the beginning of the process. During September, the company transferred 760,000 units of product to finished goods. At the end of September, the goods in process inventory consists of 203,000 units that are 90% complete with respect to labor. Beginning inventory had $438,165 of direct materials and $188,540 of direct labor cost. The direct labor cost added in September is $3,582,260, and the direct materials cost added is $2,932,335. |
references
3.
value: 2.00 points
Problem 20-2A Part 1
| Required: | |
| 1(a) | Determine the equivalent units of production with respect to direct labor. |
| Equivalent units |
| 1(b) | Determine the equivalent units of production with respect to direct materials. |
| Equivalent units |
check my work eBook Links (2) references
4.
value: 2.00 points
Problem 20-2A Part 2
| 2. | Compute both the direct labor cost and the direct materials cost per equivalent unit. (Round your answers to 2 decimal place. Omit the “$” sign in your response.) |
| Per equivalent unit | |
| Direct labor cost | $ |
| Direct materials cost | $ |
check my work eBook Links (2) references
5.
value: 2.00 points
Problem 20-2A Part 3
| 3(a) | Compute both direct labor cost and direct materials cost assigned to units completed and transferred out. (Due to rounding of cost per unit, the total costs accounted for in the cost summary may not equal to sum of all the costs given in the problem. Round your per unit costs to 2 decimal places and final answers to the nearest dollar amount.) |
| Cost transferred out | |
| Direct materials | $ |
| Direct labor | $ |
| 3(b) | Compute both direct labor cost and direct materials cost assigned to ending goods in process inventory. (Due to rounding of cost per unit, the total costs accounted for in the cost summary may not equal to sum of all the costs given in the problem. Round your per unit costs to 2 decimal places and final answers to the nearest dollar amount.) |
| Costs of ending goods in process | |
| Direct materials | $ |
| Direct labor | $ |
Problem 20-3A Journalizing in process costing; equivalent units and costs L.O. C2, P1, P2, P3
[The following information applies to the questions displayed below.]
| Li Company produces large quantities of a standardized product. The following information is available for its production activities for January. |
| Raw materials | Factory overhead incurred | ||||||
| Beginning inventory | $ | 16,000 | Indirect materials used | $ | 80,500 | ||
| Raw materials purchased (on credit) | 280,000 | Indirect labor used | 40,000 | ||||
| Direct materials used | (171,500 | ) | Other overhead costs | 159,920 | |||
| Indirect materials used | (80,500 | ) | Total factory overhead incurred | $ | 280,420 | ||
| Ending Inventory | $ | 44,000 | |||||
| Factory overhead applied | |||||||
| Factory payroll | (140% of direct labor cost) | ||||||
| Direct labor used | $ | 200,300 | Total factory overhead applied | $ | 280,420 | ||
| Indirect labor used | 40,000 | ||||||
| Total payroll cost (paid in cash) | $ | 240,300 | |||||
| Additional information about units and costs of production activities follows. |
| Units | Costs | ||||||
| Beginning goods in process inventory | 2,600 | Beginning goods in process inventory | |||||
| Started | 26,000 | Direct materials | $ | 3,000 | |||
| Ending goods in process inventory | 4,900 | Direct labor | 3,500 | ||||
| Factory overhead | 4,000 | ||||||
| $ | 10,500 | ||||||
| Status of ending goods in process inventory | Direct materials added | 171,500 | |||||
| Materials—Percent complete | 90 | % | Direct labor added | 200,300 | |||
| Labor and overhead—Percent complete | 75 | % | Overhead applied (140% of direct labor) | 280,420 | |||
| Total costs | $ | 662,720 | |||||
| Ending goods in process inventory | $ | 92,911 | |||||
| During January, 22,000 units of finished goods are sold for $160 cash each. Cost information regarding finished goods follows. |
| Beginning finished goods inventory | $ | 150,000 | |
| Cost transferred in | 569,809 | ||
| Cost of goods sold | (598,390 | ) | |
| Ending finished goods inventory | $ | 121,419 | |
references
6.
value: 5.00 points
Problem 20-3A Part 1
| Required: | |
| 1(a) | Prepare journal entry dated January 31 to record the purchase of raw materials. (Omit the “$” sign in your response.) |
| Date | General Journal | Debit | Credit |
| Jan. 31 | |||
| 1(b) | Prepare journal entry dated January 31 to record the direct materials usage. (Omit the “$” sign in your response.) |
| Date | General Journal | Debit | Credit |
| Jan. 31 | |||
| 1(c) | Prepare journal entry dated January 31 to record the indirect materials usage. (Omit the “$” sign in your response.) |
| Date | General Journal | Debit | Credit |
| Jan. 31 | |||
| 1(d) | Prepare journal entry dated January 31 to record the factory payroll costs. (Omit the “$” sign in your response.) |
| Date | General Journal | Debit | Credit |
| Jan. 31 | |||
| 1(e) | Prepare journal entry dated January 31 to record the direct labor costs used in production. (Omit the “$” sign in your response.) |
| Date | General Journal | Debit | Credit |
| Jan. 31 | |||
| 1(f) | Prepare journal entry dated January 31 to record the indirect labor costs. (Omit the “$” sign in your response.) |
| Date | General Journal | Debit | Credit |
| Jan. 31 | |||
| 1(g) | Prepare journal entry dated January 31 to record the other overhead costs—credit Other Accounts.(Omit the “$” sign in your response.) |
| Date | General Journal | Debit | Credit |
| Jan. 31 | |||
| 1(h) | Prepare journal entry dated January 31 to record the overhead applied. (Omit the “$” sign in your response.) |
| Date | General Journal | Debit | Credit |
| Jan. 31 | |||
| 1(i) | Prepare journal entry dated January 31 to record the goods transferred to finished goods. (Omit the “$” sign in your response.) |
| Date | General Journal | Debit | Credit |
| Jan. 31 | |||
| 1(j) | Prepare journal entries dated January 31 to record the sale of finished goods. (Omit the “$” sign in your response.) |
| Date | General Journal | Debit | Credit |
| Jan. 31 | |||
check my work eBook Links (4) references
7.
value: 5.00 points
Problem 20-3A Part 2
| 2. | Prepare a process cost summary report for this company, showing costs charged to production, units cost information, equivalent units of production, cost per EUP, and its cost assignment and reconciliation. (Due to rounding of cost per unit, the total costs accounted for in the cost summary may not equal to sum of all the costs given in the problem. Round your cost per EUP answers to 2 decimal places and consider the same in the other calculations. Round other answers to the nearest dollar amount. Omit the “$” sign in your response.) |
| LI COMPANY | ||
| Process Cost Summary | ||
| For Month Ended January 31 | ||
| Costs Charged to Production | ||
| Costs of beginning goods in process | ||
| $ | ||
| $ | ||
| Costs incurred this period | ||
| $ | ||
| Total costs to account for | $ | |
| Unit cost information | |||
| Units to account for | Units accounted for | ||
| Total units to account for | Total units accounted for | ||
| Equivalent units of production | Direct Materials | Direct Labor | Factory Overhead |
| EUP | EUP | EUP | |
| EUP | EUP | EUP | |
| Equivalent units of production | EUP | EUP | EUP |
| Cost per EUP | Direct Materials | Direct Labor | Factory Overhead | ||||||
| $ | $ | $ | |||||||
| Total costs | $ | $ | $ | ||||||
| EUP | EUP | EUP | |||||||
| Cost per EUP | $ | Per EUP | $ | Per EUP | $ | Per EUP | |||
| Cost assignment and reconciliation | ||
| Costs transferred out | ||
| $ | ||
| $ | ||
| Costs of ending goods in process | ||
| $ | ||
| Total costs to account for | $ | |
roblem 20-5A Process cost summary, equivalent units, cost estimates L.O. C2, C3, P4
[The following information applies to the questions displayed below.]
| Ogden Co. manufactures a single product in one department. All direct materials are added at the beginning of the manufacturing process. Direct labor and overhead are added evenly throughout the process. The company uses monthly reporting periods for its weighted-average process cost accounting. During October, the company completed and transferred 24,600 units of product to finished goods inventory. Its 4,200 units of beginning goods in process consisted of $20,800 of direct materials, $203,300 of direct labor, and $100,040 of factory overhead. It has 3,000 units (100% complete with respect to direct materials and 90% complete with respect to direct labor and overhead) in process at month-end. After entries to record direct materials, direct labor, and overhead for October, the company’s Goods in Process Inventory account follows. |
| Goods in Process Inventory | Acct. No.133 | |||
| Date | Explanation | Debit | Credit | Balance |
| Oct. 1 | Balance | 324,140 | ||
| 31 | Direct materials | 504,900 | 829,040 | |
| 31 | Direct labor | 1,224,300 | 2,053,340 | |
| 31 | Applied overhead | 963,840 | 3,017,180 | |
references
8.
value: 5.00 points
Problem 20-5A Part 1
| 1. | Prepare the company’s process cost summary for October using the weighted-average method. (Due to rounding of cost per unit, the total costs accounted for in the cost summary may not equal to sum of all the costs given in the problem. Round your cost per EUP answers to 2 decimal places and consider the same in the other calculations. Round other answers to the nearest dollar amount. Omit the “$” sign in your response.) |
| OGDEN CO. | ||
| Process Cost Summary | ||
| For Month Ended October 31 | ||
| Costs Charged to Production | ||
| Costs of beginning goods in process | ||
| $ | ||
| $ | ||
| Costs incurred this period | ||
| $ | ||
| Total costs to account for | $ | |
| Unit cost information | |||
| Units to account for | Units accounted for | ||
| Total units to account for | Total units accounted for | ||
| Equivalent units of production | Direct Materials | Direct Labor | Factory Overhead |
| EUP | EUP | EUP | |
| EUP | EUP | EUP | |
| Equivalent units of production | EUP | EUP | EUP |
| Cost per EUP | Direct Materials | Direct Labor | Factory Overhead |
| $ | $ | $ | |
| Total costs | $ | $ | $ |
| EUP | EUP | EUP | |
| Cost per EUP | $ per EUP | $ per EUP | $ per EUP |
| Cost assignment and reconciliation | ||
| Costs transferred out | ||
| $ | ||
| $ | ||
| Costs of ending goods in process | ||
| $ | ||
| Total costs to account for | $ | |
check my work eBook Links (3) references
9.
value: 2.00 points
Problem 20-5A Part 2
| 2. | Prepare the journal entry dated October 31 to transfer the cost of completed units to finished goods inventory. (Omit the “$” sign in your response.) |
