Managerial Accounting: Tools for Business Decision Making
7th Edition
ISBN: 9781118334331
Author: Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso
Publisher: WILEY
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Chapter 3, Problem 3.5E
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 2017 are as follows.
Compute physical units and equivalent units of production. (LO 3,4), AP
Instructions
(a) Compute the physical units for January and May.
(b) Compute the equivalent units of production for (1) materials and (2) conversion costs for each month.
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Compute the equivalent units of production for (1) materials and (2) conversion costs for each month.
Materials
Conversion Costs
January
March
May
July
Given: 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.
BeginningWork in Process
EndingWork in Process
Month
Units
ConversionCost%
UnitsTransferred Out
Units
ConversionCost%
January
0
—
11,000
2,000
60
March
0
—
12,000
3,000
30
May
0
—
14,000
7,000
80
July
0
—
10,000
1,500
40
The GreenEarth Aluminum Company uses a process cost accounting system to record the costs of manufacturing rolled aluminum. The manufacturing process consists of three processes. The goods-in-process inventory of one of the processes (the rolling department) on September 1, 2018 and debits to the account for September are summarized below:
Beginning balance—5,100 units, 1/3 completed:
Direct materials (5,100 x 38.70)$ 197,370
Conversion costs (5,100 x 1/3 x 11.72) 19,924
Total beginning balance 217,294
Additional debits during the month:
Costs from Smelting Department (162,000 units) 6,240,000
Direct Labor 765,800
Factory Overhead 1,144,000
During the month of September, the 5,100 units in process at the beginning of the month were completed, and of the 162,000 units entering the department from Smelting, all were completed except 5,400 units that were 4/5 completed (hint—remember the materials are the items transferred from the Smelting Department).
A) Determine the number of units…
The GreenEarth Aluminum Company uses a process cost accounting system to record the costs of manufacturing rolled aluminum. The manufacturing process consists of three processes. The goods-in-process inventory of one of the processes (the rolling department) on September 1, 2018 and debits to the account for September are summarized below:
Beginning balance—5,100 units, 1/3 completed:
Direct materials (5,100 x 38.70)$ 197,370
Conversion costs (5,100 x 1/3 x 11.72) 19,924
Total beginning balance 217,294
Additional debits during the month:
Costs from Smelting Department (162,000 units) 6,240,000
Direct Labor 765,800
Factory Overhead 1,144,000
During the month of September, the 5,100 units in process at the beginning of the month were completed, and of the 162,000 units entering the department from Smelting, all were completed except 5,400 units that were 4/5 completed (hint—remember the materials are the items transferred from the Smelting Department).
A) Determine the number of units…
Chapter 3 Solutions
Managerial Accounting: Tools for Business Decision Making
Ch. 3 - Identify which costing systemjob order or process...Ch. 3 - Contrast the primary focus of job order cost...Ch. 3 - What are the similarities between a job order and...Ch. 3 - Your roommate is confused about the features of...Ch. 3 - Sam Bowyer believes there are no significant...Ch. 3 - (a) What source documents are used in assigning...Ch. 3 - At Ely Company, overhead is assigned to production...Ch. 3 - Prob. 8QCh. 3 - Prob. 9QCh. 3 - Prob. 10Q
Ch. 3 - Sanchez Co. has zero units of beginning work in...Ch. 3 - Coats Company had zero units of beginning work in...Ch. 3 - Sanchez Co. has zero units of beginning work in...Ch. 3 - Hindi Co. started 3,000 units during the period....Ch. 3 - Clauss Company transfers out 14,000 units and has...Ch. 3 - Prob. 16QCh. 3 - What purposes are served by a production cost...Ch. 3 - As Trent Company, there are 500 units of ending...Ch. 3 - What is the difference between operations costing...Ch. 3 - How does a company decide whether to use a job...Ch. 3 - Soria Co. started and completed 2,000 units for...Ch. 3 - Reyes Company transfers out 12,000 units and has...Ch. 3 - Journalize entries for accumulating costs. (LO 2)....Ch. 3 - Data for Warner Company are given in BE3-1....Ch. 3 - Compute equivalent units of production. (LO 3), AP...Ch. 3 - Compute equivalent units of production. (LO 3), AP...Ch. 3 - Compute unit costs of production.. (LO 4), AP In...Ch. 3 - Assign costs to units transferred out and in...Ch. 3 - Compute unit costs. (LO 4), AP Production costs...Ch. 3 - Prepare cost reconciliation schedule. (LO 4), AP...Ch. 3 - Assign costs to units transferred out and in...Ch. 3 - Assign costs to units transferred out and in...Ch. 3 - Compute unit costs. (LO 5), AP Production costs...Ch. 3 - Indicate whether each of the following statements...Ch. 3 - Kopa Company manufactures CH-21 through two...Ch. 3 - The Assembly Department for Right pens has the...Ch. 3 - In March, Kelly Company had the following unit...Ch. 3 - Robert Wilkins has prepared the following list of...Ch. 3 - Journalize transactions. (LO 2), AP Harrelson...Ch. 3 - The ledger of American Company has the following...Ch. 3 - Journalize transaction for two processes. (LO 2),...Ch. 3 - In Shady Company, materials are entered at the...Ch. 3 - The Cutting Department of Cassel Company has the...Ch. 3 - The Sanding Department of Quik Furniture Company...Ch. 3 - The Blending Department of Luongo Company has the...Ch. 3 - Determine equivalent units, unit costs, and...Ch. 3 - Determine equivalent units, unit costs, and...Ch. 3 - The Polishing Department of Major Company has the...Ch. 3 - Prob. 3.12ECh. 3 - The Welding Department of Healthy Company has the...Ch. 3 - Remington Inc. is contemplating the use of process...Ch. 3 - Santana Mortgage Company uses a process cost...Ch. 3 - Compute equivalent units, unit costs, and costs...Ch. 3 - Determine equivalent units, unit costs, and...Ch. 3 - Compute equivalent units, unit costs, and costs...Ch. 3 - Answer questions on costs and production. (LO 5),...Ch. 3 - The Welding Department of Majestic Company has the...Ch. 3 - Fire Out Company manufactures its product,...Ch. 3 - Complete four steps necessary to prepare a...Ch. 3 - Thakin Industries Inc. manufactures dorm furniture...Ch. 3 - Rivera Company has several processing departments....Ch. 3 - Polk Company manufactures basketballs. Materials...Ch. 3 - Hamilton Processing Company uses a weighted...Ch. 3 - Determine equivalent units and unit costs and...Ch. 3 - CURRENT DESIGNS CDJ Building a kayak using the...Ch. 3 - Decision-Making Across the Organization Florida...Ch. 3 - Harris Furniture Company manufactures living room...Ch. 3 - CRITICAL THINKING Communication Activity Diane...Ch. 3 - Ethics Case R. B. Dillman Company manufactures a...Ch. 3 - In a recent year, an oil refinery Texas City,...
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