ACCT 002 Lecture Notes - Lecture 9: Indian Railways, Sept

7 views2 pages

skywildebeest596

5 Aug 2020

School

College of The Sequoias

Department

Accounting (ACCT)

Course

ACCT 002

Professor

teller

For unlimited access to Class Notes, a Class+ subscription is required.

Document Summary

A major benefit of this method is simplicity. The main disadvantage is reduced accuracy in computing unit costs. If greater accuracy is required company should use fifo. Some departments receive partially completed goods from prior departments. The usual approach is to treat transferred-in goods as a separate material category. Cost of this material is the cost of the goods transferred out as computed in the prior department. For sept. company a encapsulating department had: Completed and transferred out 60000 units at a cost of . Any product or service that is basically homogenous and repetitively produced can take advantage of a process-costing approach. Service can not be stored, however it is possible for firms to engage in service production and have wip inventories. Manufacturing firms with jit may also operate without significant wip inv. Traditional manufacturing firms may have significant beginning and ending wip inv. Separates the cost of bwip from the cost of the current period.

Related Questions

Kansas Supplies is a manufacturer of plastic parts that uses the weighted-average process costing method to account for costs of production. It produces parts in three separate departments: Molding, Assembling, and Packaging. The following information was obtained for the Assembling Department for the month of April.

Work in process on April 1 had 75,000 units made up of the following:

	Amount		Degree of Completion
Prior department costs transferred in from the Molding Department	$	192,000		100	%
Costs added by the Assembling Department
Direct materials	$	120,000		100	%
Direct labor		43,200		60	%
Manufacturing overhead		27,600		50	%
	$	190,800
Work in process, April 1	$	382,800

During April, 375,000 units were transferred in from the Molding Department at a cost of $960,000. The Assembling Department added the following costs:


Direct materials	$	576,000
Direct labor		216,000
Manufacturing overhead		113,400
Total costs added	$	905,400

Assembling finished 300,000 units and transferred them to the Packaging Department.

At April 30, 150,000 units were still in work-in-process inventory. The degree of completion of work-in-process inventory at April 30 was as follows:


Direct materials	90	%
Direct labor	70
Manufacturing overhead	35

Required:

a. Prepare a production cost report using the weighted-average method. (Round "Cost per equivalent unit" to 2 decimal places.)

KANSAS SUPPLIES
Assembling Department
Production Cost ReportâWeighted-Average
Flow of Production Units
	Physical units
Units to be accounted for:
Beginning WIP inventory
Units started this period
Total units to be accounted for

	DETAILS
	Total Costs	Prior Department Costs	Materials	Labor	Manufacturing Overhead
Costs to be accounted for:
Costs in beginning WIP inventory
Current period costs
Total costs to be accounted for

Cost per equivalent unit:
Prior department costs
Materials
Labor
Manufacturing overhead

Costs accounted for:
Costs assigned to units transferred out:
Prior department costs
Materials
Labor
Manufacturing overhead
Total costs of units transferred out
Costs assigned to ending WIP inventory:
Prior department costs
Materials
Labor
Manufacturing overhead
Total ending WIP inventory
Total costs accounted for

yellowseal74

Equivalent units of production (EUP) weighted averagemethod
	Units	% Materials	EUP â Materials	% Conversion	EUP Conversion
(Beg. goods in process inventory - units / total unitsaccounted for / total units to accounted for / units completed& transferred out / units started this period) - Select 1
(Beg. goods in process inventory - units / total unitsaccounted for / total units to accounted for / units completed& transferred out / units started this period) - Select 1
Total units
Cost per equivalent unit of production			Materials		Conversion
(Costs transferred out / costs incurred this period / costs ofending work in process / cost of beg. work in process) - Select1
(Costs transferred out / costs incurred this period / costs ofending work in process / cost of beg. work in process) - Select1
Totalcosts		Costs		Costs
Divide Equivalent units production		EUP		EUP
Cost per equivalent unit of production			Materials		Conversion


Totalcosts		Costs		Costs
DivideEquivalent units of Production		EUP		EUP
Costper equivalent unit of production
Total costs accounted for:
Cosof units transferred out:	EUP	Cost per EUP	Total cost
Directmaterials
Conversion
Totalcosts transferred out

Costs of endingWIP EUP Cost perEUP Total Cost

Directmaterials _____ $______ ______

Conversion ______ $_______ _______

Total cost of ending WIP

Total costs accounted for

Total costs to account for:
(Cost transferred out/costs incurred this period/cost ofending work in process/ cost of beg. work in process) - Select1
(Cost transferred out/costs incured this period/cost ofending work in process/ cost of beg. work in process) - Selecet1
Total costs accounted for:
Total costs accounted for:
Difference due to rounding costs/unit:
Unit reconciliation:
(Beg. work in pricess inventory - units / ending work inprocess units / units completed & trasnferred out / unitsstarted this period)
(Beg. work in pricess inventory - units / ending work inprocess units / units completed & trasnferred out / unitsstarted this period)
(extra row - ignore)
Total units to acount for:
Total units accounted for:
Units completed & transferred out
Ending Work in process - units
Total units accounted for:

Tamar Co. manufactures a single product in one department. Alldirect materials are added at the beginning of the manufacturingprocess. Conversion costs are added evenly throughout the process.During May, the company completed and transferred 25,200 units ofproduct to finished goods inventory. Its 3,600 units of beginningwork in process consisted of $20,400 of direct materials and$248,940 of conversion costs. It has 2,700 units (100% completewith respect to direct materials and 80% complete with respect toconversion) in process at month-end. During the month, $677,100 ofdirect material costs and $2,350,260 of conversion costs werecharged to production.

1. Prepare the company's process cost summary for May usig theweighted- average method. (Charts before question)

Prepare the journal entry dated May31 to transfer the cost of completed units to finished goodsinventory. (Do not roundintermediate calculations. Round your final answer to the nearestwhole dollar.)

JournalEntry Worksheet

Record the transfer of goods tofinished goods inventory.

Date General Journal debit Credit

May 31

thod.

erincod948

Douglas Toys is a manufacturer that uses FIFO costing method toaccount for costs of production. It produces a plastic toy in threeseparate departments: Molding, Assembling, and Finishing. Thefollowing information was obtained for the Assembling Departmentfor the month of September.

Work in process on September 1 had120,000 units made up of the following:

Amount

Degree ofCompletion

Prior departmentcosts transferred in from the Molding Department

178,800

100

Costs added by theAssembling Department

Manufacturing overhead

32,520

187,240

Work in process,September 1

366,040

During September, 520,000 unitswere transferred in from the Molding Department at a cost of$774,800. The Assembling Department added the following costs:

Manufacturingoverhead

161,880

Total costsadded

836,200

Assembling finished 420,000units and transferred them to the Finishing Department.

At September 30, 220,000 unitswere still in work-in-process inventory. The degree of completionof work-in-process inventory at September 30 was as follows:

Direct materials90%

Directlabor80

Manufacturingoverhead30

Required:

(a)

Prepare a production cost report using FIFO. (Round youranswer to 2 decimal places.)

DOUGLAS TOYS
Assembling Department
Production Cost ReportâFIFO
Flow of Production Units	COMPUTE EQUIVALENT UNITS
	Physical Units	Prior Department Costs	Materials	Labor	Manufacturing Overhead
Units tobe accounted for:
BeginningWIP inventory
Unitsstarted this period
Totalunits to be accounted for	0
Unitsaccounted for:
Unitscompleted and transferred out:
Frombeginning inventory
Startedand completed currently
Units inending WIP inventory
Totalunits accounted for	0	0	0	0	0

Costs		DETAILS
	Total Costs	Prior Department Costs	Materials	Labor	Manufacturing Overhead
Costs tobe accounted for:
Costs inbeginning WIP inventory
Currentperiod costs
Totalcosts to be accounted	$0	$0	$0	$0	$0

Cost perequivalent unit:
Priordepartment costs
Materials
Labor
Manufacturing overhead

	DETAILS
	Total Costs	Prior Department Costs	Materials	Labor	Manufacturing Overhead
Costsaccounted for:
Costsassigned to units transferred out:
Costsfrom beginning WIP inventory
Currentcosts added to complete beginning WIP inventory:
Priordepartment costs
Materials
Labor
Manufacturing overhead
Totalcosts from beginning inventory	$0
Currentcosts of units started and completed:
Priordepartment costs
Materials
Labor
Manufacturing overhead
Totalcosts of units started and completed	$0
Totalcosts of units transferred out	$0
Costsassigned to ending WIP inventory:
Priordepartment costs
Materials
Labor
Manufacturing overhead
Totalending WIP inventory	$0
Total costs accounted for	$0	$0	$0	$0	$0

emeraldbutterfly445

ACCT 002 Lecture Notes - Lecture 9: Indian Railways, Sept

Document Summary

Get access

Related Documents

ACCT 002 Lecture Notes - Lecture 8: Process Manufacturing

ACCT 002 Lecture Notes - Lecture 14: Finished Good, Income Statement

BUSI 3008 Lecture Notes - Lecture 8: Eu Three, European Cooperation In Science And Technology

Related Questions