Principles of Cost Accounting
17th Edition
ISBN: 9781305087408
Author: Edward J. Vanderbeck, Maria R. Mitchell
Publisher: Cengage Learning
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Chapter 5, Problem 11E
a.
To determine
Determine the month’s unit cost for the month in finishing.
b.
To determine
Compute the unit cost of the product transferred to finished goods.
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Department S had no work in process at the beginning of the period. It added 10,000 units of direct materials during the period at a cost of $70,000; 7,500 units were completed during the period; and 2,500 units were 26% completed as to labor and overhead at the end of the period. All materials are added at the beginning of the process. Direct labor was $60,000 and factory overhead was $9,400.
The total cost of units completed during the period was
$52,500
$116,365
$107,715
$139,638
Department S had no work in process at the beginning of the period. It added 12,000 units of direct materials
during the period at a cost of $84,000; 9,000 units were completed during the period; and 3,000 units were
30% completed as to labor and overhead at the end of the period. All materials are added at the beginning of
the process. Direct labor was $49,500, and factory overhead was $9,900.
The total cost of units completed during the period was
a. $143,400
b. $127,450
c. $121,000
d. $117,000
Heintz Products uses activity-based costing to account for product costs. The plant manager has estimated the following cost drivers
and rates.
Activity Centers
Materials inspection
Equipment maintenance
Machine setups
Packing and shipping
Direct materials costs were $552,000 and direct labor costs were $392,000 during November, when the plant finished 7,000 pounds
of product, had 20 setups, and ran the machines for 15,000 hours. There were no work-in-process inventories.
Beginning Balance
Required:
Use T-accounts to show the flow of materials, labor, and overhead costs from the four overhead activity centers through Work-in-
Process Inventory and out to Finished Goods Inventory. Use the accounts Materials Inventory, Wages Payable, Work-in-Process
Inventory, Finished Goods Inventory, and four overhead applied accounts.
Ending Balance
Beginning Balance
Ending Balance
Cost Drivers
Direct materials cost
Machine-hours
Number of production runs
Pounds of finished output
Debit
Debit…
Chapter 5 Solutions
Principles of Cost Accounting
Ch. 5 - What are the two basic systems of cost accounting,...Ch. 5 - Following is a list of manufactured products. For...Ch. 5 - Give three examples of industries and companies...Ch. 5 - What is the primary difference between the two...Ch. 5 - What is the difference between the term unit cost...Ch. 5 - How do the two cost accounting systems differ in...Ch. 5 - What is the primary objective in accumulating...Ch. 5 - Prob. 8QCh. 5 - Prob. 9QCh. 5 - What would be the effect on the unit cost of...
Ch. 5 - What information is reflected on a production...Ch. 5 - What are the four main sections of a cost of...Ch. 5 - Prob. 13QCh. 5 - Prob. 14QCh. 5 - In determining the costs transferred to a third...Ch. 5 - Prob. 16QCh. 5 - Prob. 17QCh. 5 - Compute the equivalent production (unit output)...Ch. 5 - During the month, a company with no...Ch. 5 - Comacho Chemical Co. recorded costs for the month...Ch. 5 - Norwood Co. had 200 units in work in process at...Ch. 5 - Using the following data, determine which figures...Ch. 5 - The records of Burris Inc. reflect the following...Ch. 5 - The records of Stone Inc. reflect the following...Ch. 5 - Argo Manufacturing Co. had 500 units, three-fifths...Ch. 5 - AAA Appliances Inc. has two production...Ch. 5 - AAA Appliances Inc. has two production...Ch. 5 - Prob. 11ECh. 5 - Prob. 12ECh. 5 - Prob. 13ECh. 5 - Prob. 14ECh. 5 - Chavez Concrete Inc. has two production...Ch. 5 - Chavez Concrete Inc. has two production...Ch. 5 - Prob. 17ECh. 5 - Prob. 18ECh. 5 - Prob. 19ECh. 5 - Geneva Products Co. produces a latex paint and...Ch. 5 - Dublin Brewing Co. uses the process cost system....Ch. 5 - Kokomo Kayak Inc. uses the process cost system....Ch. 5 - Prob. 4PCh. 5 - Sifting, the second department in a...Ch. 5 - Forming, the second department in a...Ch. 5 - Premier Products Inc. has three departments and...Ch. 5 - Premier Products Inc. has three departments and...Ch. 5 - Aero Aluminum Inc. uses a process cost system. The...Ch. 5 - Aero Aluminum Inc. uses a process cost system. The...Ch. 5 - Prob. 11PCh. 5 - Petrini Products Co. has two departments: Mixing...Ch. 5 - Tanaka Manufacturing Co. uses the process cost...Ch. 5 - Syracuse Beverages Inc. has three plants that make...
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