ACC 336 Chapter Notes - Chapter 6: European Cooperation In Science And Technology, Root Mean Square, Unit

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viridianjellyfish544

2 Jul 2020

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Characterized by a large number of homogenous products passing through a series of processes. Each process is responsible for one or more operations that bring product one step closer to completion. May require materials, labor, and oh inputs. Upon completion of a particular process the partially completed goods are transferred to another process. Cost transferred from a prior process to a subsequent process. Has a wip inventory account for every process. Traces the ow of units through a department and identi es the costs charged. Shows the computations of unit costs and reveals the disposition of the departments costs for the reporting period. Divided into unit info and cost info. Homogenous units pass through series of similar processes. Each unit in each process receives a similar dose of manufacturing costs. Manufacturing costs are accumulated by process for a given period of time. There is a wip account for each process.

Related Questions

part one

Which of the following would not be a characteristic in aProcess Costing System?

Select one:

A. Each department has its own WIP account

B. A product cost report accumulates costs in eachdepartment

C. DM, DL, and FOH are transferred directly to the finished goodaccount

D. Products physically move through each department

part 2

Dropping an unprofitable customer will always result inimmediate improvements in company profits.

True or False

part 3

In process costing, all product costs are accumulated in asingle Work in Process account until the goods have passed throughall production departments; the costs are then transferred toFinished Goods.

True of False

Part 4

Increasing the number of cost pools in an Activity-Based Costingsystem will almost always result in cost savings.

true or false

apricotsquirrel151

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

Fast Co. produces its product through a single processing department. Direct materials are added at the start of production, and conversion costs are added evenly throughout the process. The company uses monthly reporting periods for its weighted-average process costing system. The Work in Process Inventory account has a balance of $100,300 as of October 1, which consists of $21,900 of direct materials and $78,400 of conversion costs.

During the month the company incurred the following costs:


Direct materials	$	181,800
Conversion		788,240

During October, the company started 156,000 units and transferred 166,000 units to finished goods. At the end of the month, the work in process inventory consisted of 28,000 units that were 80% complete with respect to conversion costs.

Required:
1. Prepare the companyâs process cost summary for October using the weighted-average method.
2. Prepare the journal entry dated October 31 to transfer the cost of the completed units to finished goods inventory.

Complete this question by entering your answers in the tabs below.

Required 1

Required 2

Prepare the companyâs process cost summary for October using the weighted-average method. (Round "Cost per EUP" to 2 decimal places.)

(Fill in white boxes.

Total costs to account for:


Total costs to account for:
Total costs accounted for
Difference due to rounding cost/unit
Unit reconciliation:
Units to account for:


Total units to account for
Total units accounted for:


Total units accounted for
Equivalent units of production (EUP)- weighted average method
	Units	% Materials	EUP- Materials	% Conversion	EUP-Conversion


Total units
Cost per equivalent unit of production			Materials		Conversion


Total costs		Costs		Costs
Ã· Equivalent units of production		EUP		EUP
Cost per equivalent unit of production (rounded to 2 decimals)
Total costs accounted for:
Cost of units transferred out:	EUP	Cost per EUP	Total cost
Direct materials
Conversion
Total costs transferred out
Costs of ending work in process	EUP	Cost per EUP	Total cost
Direct materials
Conversion
Total cost of ending work in process
Total costs accounted for

Journal entry worksheet

Record the transfer of goods to finished goods inventory.

Note: Enter debits before credits.

Date	General Journal	Debit	Credit
Oct 31

orangeyellowjacket63

ACC 336 Chapter Notes - Chapter 6: European Cooperation In Science And Technology, Root Mean Square, Unit

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