Weighted-average method, spoilage, equivalent units. (CMA, adapted) Consider the following data for November 2017 from MacLean Manufacturing Company, which makes silk pennants and uses a process-costing system. All direct materials are added at the beginning of the process, and conversion costs are added evenly during the process. Spoilage is detected upon inspection at the completion of the process. Spoiled units are disposed of at zero net disposal value. MacLean Manufacturing Company uses the weighted-average method of process costing. Physical Units (Pennants) 1,350 Direct Conversion Materials Costs Work in process, November 1° $ 966 $ 711 Started in November 2017 Good units completed and transferred out during November 2017 Normal spoilage Abnormal spoilage Work in process, November 30b Total costs added during November 2017 8,800 80 50 1,700 $10,302 $30,055 Degree of completion: direct materials, 100%; conversion costs, 45%. "Degree of completion: direct materials, 100%; conversion costs, 35%.

Weighted-average method, spoilage, equivalent units. (CMA, adapted) Consider the following data for November 2017 from MacLean Manufacturing Company, which makes silk pennants and uses a process-costing system. All direct materials are added at the beginning of the process, and conversion costs are added evenly during the process. Spoilage is detected upon inspection at the completion of the process. Spoiled units are disposed of at zero net disposal value. MacLean Manufacturing Company uses the weighted-average method of process costing. Physical Units (Pennants) 1,350 Direct Conversion Materials Costs Work in process, November 1° $ 966 $ 711 Started in November 2017 Good units completed and transferred out during November 2017 Normal spoilage Abnormal spoilage Work in process, November 30b Total costs added during November 2017 8,800 80 50 1,700 $10,302 $30,055 Degree of completion: direct materials, 100%; conversion costs, 45%. "Degree of completion: direct materials, 100%; conversion costs, 35%.

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Description: use the FIFO method to summarize the total costs to account for; calculate the cost per equivalent unit for direct materials and conversion costs; and assign costs to units completed and transferred out (including normal spoilage), to abnormal spoila

Principles of Cost Accounting

17th Edition

ISBN:9781305087408

Author:Edward J. Vanderbeck, Maria R. Mitchell

Publisher:Edward J. Vanderbeck, Maria R. Mitchell

Chapter2: Accounting For Materials

Section: Chapter Questions

Problem 18E: For E2-17, prepare any journal entries that would have been different if the only trigger points had...

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4. Considering the following data for April 2018 from Pink Manufacturing Company, which makes silk pennants and uses FIFO Process Costing. All direct materials are added at the beginning of the costing process, and conversion costs are added evenly during the process. Spoilage is detected upon inspection at the completion of the process. Spoiled units are disposed at a zero net disposal value. Physical Direct Units Direct Materials Conversion Costs Work in process, April 1 Started in April Completed and transferred out 1,000 P14,230 P11,100 ? 9,000 Normal lost units 100 Abnormal lost units 50 Work in process, April 30 Costs added during April 2,000 P121,180 P277,500 Stages of Completion of Work in Process Materials Conversion Costs Beginning 100% 50% Ending 100% 30% Requirement: 1.What are the equivalent units for materials and conversion cost? 2. What is cost per equivalent units for materials and conversion costs (rounded)? 2.What is the cost of the units completed and transferred…
A firm uses a process costing st=ystem and inspects its goods at the end of manufacturing.the inspection as of june 30 revealed the following information for the month of june: Good units completed 24000 normal spoilage(units) 65 abnormal spoilage(units) 2000 units cost were materials $12.00 and conversion cost $9.50. the number of units that the firm would transfer its finished goods inventory and the realted cost of these units are: a) number of units? b) Cost?
(d) State the journal entries necessary to record the assignment of direct materials, direct manufacturing wages and manufacturing overhead applied to Process 2. Also give the journalentries to record the cost of goods completed and transferred to finished goods. (e) Given that 20% of the unexpected losses were as a result of pilferage, prepare the abnormal spoilage statement, clearly showing Better Choice’s true loss.
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Al Habib manufacturer uses the FIFO method in its process costing system. The following information is available for the company for the month of February 2023. All materials are added at the start of production. All spoilage is abnormal and is detected by the final inspection at the end of the process. Beginning work in process (80% complete) 9,500 units Units Started 42,000 units Ending work in process (55% complete) 18,000 units Completed and transferred out 31,000 units Beginning work-in-process costs: Materials $14,000 Conversion $38,200 Current costs: Materials $50,750 Conversion $173,130 Required: Using the Microsoft Excel program, prepare a cost of production report for the company for the month of February 2023. Your report must be completed in a good format with all four steps in a typical process costing system. Dont uplode any images in answer
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Chemet manufactures chemicals in a continuous process. The company combines various materials in a specially configured machine at the beginning of the process, and conversion is considered uniform through the period. Occasionally, the chemical reactions among the materials do not work as expected and the output is then considered spoiled. Normal spoilage is 4% of the good units that pass inspection. The following information pertains to March 2017: Beginning inventory = 2,500 units (100% complete for materials; 25% complete for conversion costs) Units started = 30,000 Units in ending work in process = 2,100 (100% complete for materials; 70% complete for conversion costs) Chemet had 1,900 spoiled units in March 2017. compute the normal and abnormal spoilage in units, assuming the inspection point is at (a) the 20% stage of completion, (b) the 45% stage of completion, and (c) the 100% stage of completion.
Cranbrook Textiles Company makes silk banners and uses the weighted-average method of process costing. Direct materials are added at the beginning of the process, and conversion costs are added evenly during the process. Spoilage is detected upon inspection at the completion of the process. Spoiled units are disposed of at zero net disposal value. (Click the icon to view the process costing data.) Determine the equivalent units of work done in July, and calculate the cost of units completed and transferred out (including normal spoilage), the cost of abnormal spoilage, and the cost of units in ending inventory. - X Data table Physical Units Direct Conversion Enter the physical units in first, then calculate the equivalent units. (Banners) Materials Costs 1,300 $195,000 $8,000 Work in process, (July 1)" Started in July 2020 Good units completed and transferred out in July Normal spoilage Abnormal spoilage Physical 37,500 20,500 9,000 Flow of Production Units Work in process beginning…
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Hepworth Company has implimented a JIT system and is considering the use of backflush costing. Hepworth had the following transcations for the current fiscal year 1.Purchased raw materials on account for $600,000 2.Placed all materials recieved into production 3. Incurrec actual direct labor costs of $90,000 4. Incurred actual overhead costs of $625,000 5.Applied conversion costs of $675,000 6. Completed all work for the month 7.Sold all completed work 8.Computed the difference between actual and applied costs. Required: 1.Prepare the journal entries for traditional and backflush costing, For backflush costing, assume there are two trigger point (1) The purchase of raw materials and (2) The completion of the goods 3.What if there is only one trigger poin and its is (a) completion of the goods or b) sale of the goods? How would the backflush-costing journal entries differ from requirement 1 for (a) and (b)?