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Chapter 4 Cost Accountng

Rainbow Glass Company uses process costing for manufacturing decorative glass products. In October, they started and completed 3000 units, with 1000 units in beginning work in process that were also completed. They need to calculate equivalent units of direct material and conversion activity during October using weighted-average process costing. Timing Technology manufactures timing devices. In December, 17,000 units were completed and transferred out while 12,000 units were 75% complete for conversion and 50% complete for materials in ending work in process. They need to prepare schedules to compute the physical flow of units, equivalent units using weighted-average, and ending inventory costs. Piscataway Plastics manufactures plastic for automobiles. In June,

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Farah Yasser
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513 views4 pages

Chapter 4 Cost Accountng

Rainbow Glass Company uses process costing for manufacturing decorative glass products. In October, they started and completed 3000 units, with 1000 units in beginning work in process that were also completed. They need to calculate equivalent units of direct material and conversion activity during October using weighted-average process costing. Timing Technology manufactures timing devices. In December, 17,000 units were completed and transferred out while 12,000 units were 75% complete for conversion and 50% complete for materials in ending work in process. They need to prepare schedules to compute the physical flow of units, equivalent units using weighted-average, and ending inventory costs. Piscataway Plastics manufactures plastic for automobiles. In June,

Uploaded by

Farah Yasser
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as RTF, PDF, TXT or read online on Scribd
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4-18: Rainbow Glass Company manufactures decorative glass products.

The firm employs a processcosting system for its manufacturing operations. All direct material are added at the beginning of the process, and conversion costs are incurred uniformly throughout the process. The companys production schedule for ctober follows!

Units "or# in process in +nits started during ctober $ %&'( complete as to conversion)***** ctober ******************. $,''' ,,''' &,'''

Total units to account for********************

+nits from beginning wor# in process, which were completed and transferred out during ctober*************************** $,''' +nits started and completed during "or# in process on ctober************.. -,''' .,''' &,'''

ctober -$%.'( complete as to conversion)****.

Total units to account for********************

Required: Calculate each of the following amounts suing weighted-average process costing.

1. /0uivalent units of direct material during ctober. 2. /0uivalent units of conversion activity during ctober.
1-.,! The 2ovember producing for 345s 3innesota 6ivision consisted of batch 5., %.,''' professional baseballs and batch 7-- %1,''' scholastic baseballs). /ach batch was started and finished during 2ovember and there was no beginning t ending wor# in process. Costs incurred were as follow!

Direct material: 8atch 5., 91.,''', including 9 .,,'' for pac#aging material! batch 7--, 91,,'''.

Conversion cost: 5reparation department, predetermined rate of 9 :.,' per unit! ;inishing department, predetermined rate of 9 &.'' per unit! 5ac#aging department predetermined rate is 9'.,' per unit %only the professional balls are pac#aged).

Required:

1. 6raw a diagram depicting the divisions batch manufacturing process. Refer to /<hibit 1$' for guidance.

2. Compute the 2ovember product cost for each type of baseball. 3. 5repare =ournal entries to record the cost flows during 2ovember.
4-27: Timing Technology, >nc. manufactures timing devices. 6uring .'<$, ?'',''' units were completed and transferred to finished-goods inventory. n 6ecember -$,.'<$ there were -'',''' units in wor# in process. These units were ,' percent complete as to conversion and $'' percent complete as to direct material. ;inished-goods inventory consisted of .'',''' units. 3aterials are added to production at the beginning of manufacturing process, and overhead is applied to each product at the rate of &' percent of direct-labor costs. There was no finishedgoods inventory on @anuary $,.'<$. A review of the inventory cost records disclosed the following information! . Unit "or#-in-process, @anuary $,.'<$ %A'( complete as to conversion) +nits started in production..... $,''',''' 6irect-material costs............ 6irect-labor costs................. Required: $. 5repare schedules as of 6ecember -$,.'<$, to compute the following. .. 5hysical flow of units -. /0uivalent units of production using the weighted-average method. 9 $,-'',''' 9$,??,,''' Materials .'',''' Labor 9 .'',''' 9-$,,''' Cost .

1. Costs per e0uivalent unit for material and conversion. ,. Cost of the 6ecember -$, .'<$, finished goods inventory and wor# in process inventory. 4-28: 5iscataway 5lastics Company manufactures a highly specialiBed plastic that is used e<tensively in the automobiles industry. The following data have been compiled for the month of @une. Conversion activity occurs uniformity throughout the producing process. "or# in process, @une $---,',''' units 6irect material!$''( complete cost of*****************.. Conversion!1'( complete, cost of******************.. 9$.',''' -1,'''

8alance in wor# in process, @une $*******************.. 9$,1,1'' +nits started during @une************************* .'',''' +nits completed during @une and transferred ut to finished goods inventory********************* "or# in process, @une -'! 6irect material! $''( complete Conversion! &'( complete Costs incurred during @une 6irect material******************************* 91?.,,'' Conversion cost 6irect labor********************************.. 9A:,1,' Applied manufacturing overhead******************* .&.-,' $?','''

Total conversion costs*************************.. 9-1?,A'' Required: 5repare schedule to accomplish each of the following process-costing steps for the month of @une. +se the weighted -average method of process costing.

3. Analysis of physical flow of units

4. Calculation of e0uivalent units 5. Computation of unit costs 6. Analysis of total costs

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