Chapter 04 Homework instructions I help

1. value:
10.00 points
Brady Products manufactures a silicone paste wax that goes through three processing departments-
Cracking, Blending, and Packing. All raw materials are introduced at the start of work in the Cracking
Department. The Work in Process T-account for the Cracking Department for a recent month is given
below:

Work in Process- Cracking Department

Completed and transferred to
Inventory, May 1 281,600 the Blending Department ?•
Materials 680,600
Conversion 503,280
Inventory, May 31 ?•

The May 1 work in process inventory consisted of 80,000 pounds with $155,200 in materials cost and
$126,400 in conversion cost. The May 1 work in process inventory was 100°10 complete with respect to
materials and 80o/o complete with respect to conversion. During May, 318,000 pounds were started into
production. The May 31 inventory consisted of 92,000 pounds that were 100°10 complete with respect to
materials and 70% complete with respect to conversion. The company uses the weighted-average
method to account for units and costs.

Required:
1. Determine the equivalent units of production for May.

Materials Conversion
Equivalent units of production I 398000 1 I 310400 1

2. Determine the costs per equivalent unit for May. (Round your answers to 2 decimal places. Omit
the"$" sign in your response.)

Materials Conversion
Cost per equivalent unit $I 2.1 1 $I 1.1 1

3. Determine the cost of the units completed and transferred to the Blending Department during May.
(Omit the "$" sign in your response.)

Materials Conversion Total

Cost of units completed and transferred
$ I 642600 1 $ I 520200 1 $ 11162800 I
out

check my work ~ eBook Links (4) l ~ ,1 references

Chapter 04 Homework instructions I help

-'4 prov I Question #2 (of 5) , ,.. , next _.. save & exit submit assignment

2. value:
10.00 points
Billinstaff Industries uses the weighted-average method in its process costing system. Data for the
Assembly Department for May appear below:

Materials Labor Overhead

Work in process, May 1 $ 30,800 $50,625 $ 246,600
Cost added during May $186,690 $33,750 $ 164,400
Equivalent units of production 2,600 2,500 2,400

Required:
1. Compute the cost per equivalent unit for materials, for labor, and for overhead. (Round your
answers to 2 decimal places. Omit the "$" sign in your response.)

Materials Labor Overhead

Cost per equivalent unit $ I 83.65 1 $ I 33.75 1 $ I 111.25 1

2. Compute the total cost per equivalent whole unit. (Round your final answer to 2 decimal places.
Omit the "$" sign in your response.)

Total cost per equivalent unit $ I 288.65 I

check my work ~ eBook Link 1 ~ l references
Chapter 04 Homework instructions I help

-'4 prov I Question #3 (of 5) , ,.. , next _.. save & exit submit assignment

3. value:
10.00 points
Lindex Company uses a process costing system. The following data are available for one department for
October:

Percent Completed
Units Materials Conversion
Work in process, October 1 46,000 85o/o 55°/o
Work in process, October 31 40,000 71°/o 48o/o

The department started 407,000 units into production during the month and transferred 413,000
completed units to the next department.

Required:
Compute the equivalent units of production for October, assuming that the company uses the weighted-
average method of accounting for units and costs.

Materials Conversion
Equivalent units of production I 441400] I 432200]
-- ----
,,,.,~

check my work (OJ eBook Link (~) references

Chapter 04 Homework instructions I help

4. value:
10.00 points
The PVC Company manufactures a high-quality plastic pipe that goes through three processing stages
prior to completion.

Information on work in the first department, Cooking, is given below for May:

Production data:
Pounds in process, May 1: materials
100% complete; conversion 90o/o complete 55,000
Pounds started into production during May 330,000
Pounds completed and transferred to
the next department ?•
Pounds in process, May 31 :
materials 60o/o complete; conversion 40% complete 15,000
Cost data:
Work in process inventory, May 1:
Materials cost $ 78,900
Conversion cost $ 23,700
Cost added during May:
Materials cost $ 410,010
Conversion cost $ 130,460

The company uses the weighted-average method.

Required:
1. Compute the equivalent units of production.

Materials Conversion
Equivalent units of production I319000 1 I 31600-0J

2. Compute the costs per equivalent unit for the month. (Round your answers to 2 decimal places.
Omit the "$" sign in your response.)

Materials Conversion
Cost per equivalent unit $I 1.29 I $[ 0.41 ]
3. Determine the cost of ending work in process inventory and of the units transferred out to the next
department. (Omit the "$" sign in your response.)

Materials Conversion Total

Cost of ending work in process inventory $I 11610 1 $I 2460 1 $I 14010 1
Cost of units completed and transferred out $I 411300 1 $I 151100 1 $I629000 1

4. Prepare a cost reconciliation report for the month. (Omit the "$"sign in your response.)

Cost Reconciliation
Costs to be accounted for:
( Cost of beginning work in process inventory ~) $I 102600 I
( Costs added to production during the period ~) I 540410 1

Total cost to be accounted for $I 643010 1

Costs accounted for as follows:
( Cost of ending work in process inventory ~) $I 14010 1
( Cost of units completed and transferred out ~) I 629000 1

Total cost accounted for $I 643010 1

check my work @jJ eBook Links (4) 1 ~ 1 references

-
Chapter 04 Homework instructions I help

5. value:
10.00 points
Nature's Way, Inc., keeps one of its production facilities busy making a perfume called Essence de la
Vache. The perfume goes through two processing departments: Blending and Bottling.

The following incomplete Work in Process account is provided for the Blending Department for
March:

Work in Process-Blending
Completed and transferred
March 1 balance 33,300 to Bottling (760,000 ounces) ?•
Materials 146,600
Direct labor 65,200
Overhead 491,000
March 31 balance ?•

'--

The $33,300 beginning inventory in the Blending Department consisted of the following elements:
materials, $8,800; direct labor, $3,800; and overhead applied, $20,700.
Costs incurred during March in the Bottling Department were: materials used, $44,000; direct labor,
$16,700; and overhead cost applied to production, $103,000.

Required:
1. Prepare journal entries to record the costs incurred in both the Blending Department and Bottling
Department during March. (Omit the "$"sign in your response.)

a. Raw materials were issued for use in production.

b. Direct labor costs were incurred.
c. Manufacturing overhead costs for the entire factory were incurred, $626,000. (Credit Accounts
Payable and use a single Manufacturing Overhead control account for the entire factory.)
d. Manufacturing overhead was applied to production using a predetermined overhead rate.
e. Units that were complete with respect to processing in the Blending Department were transferred to
the Bottling Department, $662,000.
f. Units that were complete with respect to processing in the Bottling Department were transferred to
Finished Goods, $800,000.
g. Completed units were sold on account for $1,470,000. The cost of goods sold was $610,000.

Items General Journal Debit Credit

....
a. Work in process-Blending ,.. " IT46,6oo l
Work in process-Bottling ,..
....
I 44,ooo l
( Raw materials ~) I 190600 1

b. Work in process-Blending 65,200 1

Work in process-Bottling 16,7001
( Salaries and wages payable ~) 81900 1

c. ( Manufacturing overhead ~) I 626000 1

( Accounts payable ~) I 626000 1

d. Work in process-Blending I 491,000 1

Work in process-Bottling 1103,0001
( Manufacturing overhead I 594000 1

e. ( Work in process-Bottling ~) I 662000 1

( Work in process-Blending I 662000 1

f. ( Finished goods ~) I 800000 1

( Work in process-Bottling I 800000 1

g. ( Accounts receivable ~) 11410000 I

( Sales 11470000 1

( Cost of goods sold ~) I 610000 1

( Finished goods I 610000 1
2. Post the journal entries from ( 1) above to T-accounts. The following account balances existed at the
beginning of March. (The beginning balance in the Blending Department's Work in Process account is
given above.) (Record the transactions in the given order. Omit the"$" sign in your response.)

Raw materials $210,600

Work in process-Bottling department $ 52,000
Finished goods $ 28,000

After posting the entries to the T-accounts, find the ending balances in the inventory accounts and the
manufacturing overhead account.

Accounts Receivable

(g 11470000 1 i
Raw Materials
Bal. I 210600 I (a I 190500 I
Bal. I 20000 1

Work in Process - Blending Department

Bal. I 33300 I (e ~) I 662000 1
(a *) I 146600 I
(b ~) I 65200 1
(d ~) I 491000 I
Bal. I 74100 1

Work in Process - Bottling Department

----------------~~~~~~~~~----~~~
Bal. 52000 1 ( f ~) I 800000 1
( a ~) I 44000 1
( b ~) I 16100 I
I 103000 I
(d
*)
( e ~) I 662000 1
Bal. I 11100 1

Finished Goods
Bal. 28000 I (_g_ _ __.......
*) I 610000 I
(f I 800000 1
Bal. I 218000 I

Manufacturing Overhead

(c I 626000 I ( d I 594000 1
Bal. I 32000 1

Accounts Payable

I cc ~) I 626000 1

Salaries and Wages Payable

I cb ~) 81900 1

Sales

I cg ~) 11410000 I

Cost of Goods Sold

(g ~) I 6100ooii

check my work ~ eBook Link 1~ i references

Chapter 04 Homework

Return to Assignment List

50 out of 50 points (100%)