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Answer c21

1) The document shows journal entries for raw material purchases, work in process, factory labor, manufacturing overhead, finished goods inventory, and cost of goods sold for a manufacturing company. 2) It also shows physical units and costs for materials and conversion for work in process for two plants. Total unit production costs are calculated. 3) The document provides a production cost report for one of the plants, showing units, costs, and cost accounting for units transferred out and work in process.

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54 views8 pages

Answer c21

1) The document shows journal entries for raw material purchases, work in process, factory labor, manufacturing overhead, finished goods inventory, and cost of goods sold for a manufacturing company. 2) It also shows physical units and costs for materials and conversion for work in process for two plants. Total unit production costs are calculated. 3) The document provides a production cost report for one of the plants, showing units, costs, and cost accounting for units transferred out and work in process.

Uploaded by

Võ Huỳnh Băng
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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P21-1A

Debit Credit
1.Raw Material Inventory 300,000
Account Payable 300,000
2. WIP -Mixing 210,000
WIP – Packaging 45,000
Raw Material Inventory 255,000
3. Factory labor 278,900
Wages Payable 278,900
4. WIP -Mixing 182,500
WIP – Packaging 96,400
Factory Labor 278,900
5. MOH 810,000
Account Payable 810,000
6. WIP -Mixing 644,000
WIP – Packaging 138,000
MOH 782,000
7. WIP – Mixing 979,000
WIP – Mixing 979,000
8. F.g Inventory 1,315,000
WIP – Packaging 1,315,000
9. Account Receivable 2,500,000
Sale revenue 2,500,000
COGS 1,604,000
F.g Inventory 1,604,000

P21-2A
a.
Quantities Physical units
Units to be accounted for:
WIP June 1 0
Started into production 22,000
Total units 22,000
Unit accounted for:
Unit tranfer out 20,000
WIP June 30 2,000
Total units 22,000

b.EUs-Material = 20,000 + 100% x 2,000 = 22,000


Eus coversion costs = 20,000 + 40% x 2,000 = 20,800
198,000
c. Unit Material cost = =9
22,000
166,400
Unit conversion cost = =8
20,800

 Total manufacturing cost per unit = 9 + 8 =17

d. Transfer out : COG Transfer out = Unit tranferred out x unit manufacturing cost
= 20,000 x 17 = 340,000
Ending : Material = 2,000 x 9 = 18,000
Conversion = 800 x 8 = 8,400
 Total cost to the unít transferred out & in process = Transfer out + Ending = 364,400
e.
Molding Department
Physical units Materials Conversion cost
Units to be accounted for
WIP, June 1 0
Started into production 22,000
Total units 22,000
Units accounted for
Transfer out 20,000 20,000 20,000
WIP, June 30 2,000 2,000 800
Total units 22,000 22,000 20,800
Costs Total
Total cost 198,000 166,400 364,400
Equipvalent units 22,000 20,800
Unit costs 9 8 17
Cost to be accounted for
WIP, June 1 0
Started into production 364,400
Total cost 364,400
Cost accounted for
Transfet out (20,000 x 17) 340,000
WIP, June 30
Materials (2,000 x 9) 18,000
Coversion cost (800 x 8) 6,400
24,400
Total cost 364,400
P21-3A
a.
Plant 1
(1) Beginning balance + Trans in = Trans out + Ending balance
 0 + 20,000 = Trans out + 3,000 -> Trans out = 17,000
Quantities Physical units
Units to be accounted for:
WIP June 1 0
Started into production 20,000
Total units 20,000
Unit accounted for:
Unit tranfer out 17,000
WIP June 30 3,000
Total units 20,000

(2)
Equipvalent Units
Materials Conversion cost
Unit trans out 17,000 17,000
WIP, July 31 3,000 1,800
Eus (unit) 20,000 18,800

(3)
380,000
Unit Material cost = = 19
20,000

234,000+104,000
Unit of conversion cost = 18,800
= 18

 Total unit cost of production = 19 + 18 = 37

(4)
Trans out : COGS trans out = 17,000 x 37 = 629,000
Ending : Mat = 3,000 x 19 = 57,000
Conversion = 1,800 x 18 = 32,400
 Total cost to the unít transferred out & in process = 718,00
Plant 2
(1) Beginning balance + Trans in = Trans out + Ending balance
 0 + 18,000 = Trans out + 500 => Trans out = 17,500
Quantities Physical units
Units to be accounted for:
WIP June 1 0
Started into production 18,000
Total units 18,000
Unit accounted for:
Unit tranfer out 17,500
WIP June 30 500
Total units 18,000

(2)
Equipvalent Units
Materials Conversion cost
Unit trans out 17,500 17,500
WIP, July 31 500 400
Eus (unit) 18,000 17,900

288,000
Unit Material cost = = 16
18,000

110,000+104,800
Unit of conversion cost = = 12
17,900

 Total unit cost of production = 16 + 12 = 28

(4)
Trans out : COGS trans out = 17,500 x 28 = 490,000
Ending : Mat = 500 x 16 = 8,000
Conversion = 400 x 12 = 4,800
 Total cost to the unít transferred out & in process = 502,800
b.
Production cost report – Plant 1
Physical units Materials Conversion cost
Units to be accounted for
WIP, June 1 0
Started into production 20,000
Total units 20,000
Units accounted for
Transfer out 17,000 17,000 17,000
WIP, June 30 3,000 3,000 1,800
Total units 20,000 20,000 18,800
Costs Total
Total cost 380,000 338,400 718,400
Equipvalent units 20,000 18,800
Unit costs 19 18 37
Cost to be accounted for
WIP, June 1 0
Started into production 718,400
Total cost 718,400
Cost accounted for
Transfet out 340,000
WIP, June 30
Materials 57,000
Coversion cost 32,400
89,400
Total cost 718,400

P21-4A
a. Beg Bal + Trans in = Trans out + Ending  35,000 + 660,000 = Trans out + 25,000
-> Trans out = 670,000
Quantities Physical units
Units to be accounted for:
WIP Nov 1st 35,000
Started into production 660,000
Total units 695,000
Unit accounted for:
Unit tranfer out 670,000
WIP Nov 31st 25,000
Total units 695,000
Equipvalent Units
Materials Conversion cost
Unit trans out 670,000 670,000
WIP, Nov 31 25,000 10,000
Eus (unit) 695,000 680,000
79,000+1,589,000
Unit Material cost = = 2.4
695,000

127,150+225,920+337,930
Unit of conversion cost = = 0.9
680,000

 Total unit cost of production = 2.4 + 0.9 = 3.3


b. Trans out : COGS trans out = 670,000 x 3.3 = 2,211,000
Ending : Mat = 25,000 x 2.4 = 60,000
Conversion = 10,000 x 0.9 = 9,000
 Total cost to the unít transferred out & in process = 2,211,000 + 69,000 = 2,280,000
c.
Production cost report – Plant 1
Physical units Materials Conversion cost
Units to be accounted for
WIP, Nov 1st 35,000
Started into production 660,000
Total units 695,000
Units accounted for
Transfer out 670,000 670,000 670,000
st
WIP, Nov 31 25,000 25,000 10,000
Total units 695,000 695,000 680,000
Costs Total
Total cost 1,668,000 612,000 2,280,000
Equipvalent units 695,000 680,000
Unit costs 2.4 0.9 3.3
Cost to be accounted for
WIP, Nov 1st 127,150
Started into production 2,152,850
Total cost 2,280,000
Cost accounted for
Transfet out 2,211,000
WIP, Nov 31st
Materials 60,000
Coversion cost 9,000
69,000
Total cost 2,280,000
P21-5A
a.
Beg Bal + Trans in = Trans out + Ending  500 + 1,000 = Trans out + 600
-> Trans out = 900
Quantities Physical units
Units to be accounted for:
WIP Nov 1st 500
Started into production 1,000
Total units 1,500
Unit accounted for:
Unit tranfer out 900
WIP Nov 31st 600
Total units 1,500

(1)
Equipvalent Units
Materials Conversion cost
Unit trans out 900 900
WIP, Nov 31 600 240
Eus (unit) 1,500 1,140

(2)
750+2,400
Unit Material cost = = 2.1
1,500

600+1,580+1,240
Unit of conversion cost = 1,140
=3

 Total unit cost of production = 2.1 + 3 = 5.1


(3)
Trans out : COGS trans out = 900 x 5.1 = 4,590
Ending : Mat = 600 x 2.1 = 1,260
Conversion = 240 x 3 = 720
 Total cost to the unít transferred out & in process = 4,590 + 1,980 = 6,570
b.
Production cost report – Plant 1
Physical units Materials Conversion cost
Units to be accounted for
WIP, July 1st 500
Started into production 1,000
Total units 1,500
Units accounted for
Transfer out 900 900 900
st
WIP, July 31 600 600 240
Total units 1,500 1,500 1,140
Costs Total
Total cost 3,150 3,420 6,570
Equipvalent units 1,500 1,140
Unit costs 2.1 3 5
Cost to be accounted for
WIP, July 1st 1,350
Started into production 5,520
Total cost 6,570
Cost accounted for
Transfet out 4,590
WIP, Nov 31st
Materials 1,260
Coversion cost 720
1,980
Total cost 6,570

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