Scribd
Upload
39 views

Problem 4.36,37

The document provides cost information for Plasto Corporation's production of various plastic products in May. It includes: 1. Unit costs and total costs for raw materials and conversion costs by production department. 2. Calculations of unit costs by product and total product costs. 3. Journal entries to record the flow of costs from raw materials to work-in-process to finished goods for each product. It also provides cost calculations for a glass manufacturer's production through three departments: (1) calculating conversion costs per unit for each department, (2) determining costs for clear, unetched colored, and etched colored glass sheets as they flow through production.

Uploaded by

Hương Giang
Copyright
© © All Rights Reserved
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
39 views

Problem 4.36,37

The document provides cost information for Plasto Corporation's production of various plastic products in May. It includes: 1. Unit costs and total costs for raw materials and conversion costs by production department. 2. Calculations of unit costs by product and total product costs. 3. Journal entries to record the flow of costs from raw materials to work-in-process to finished goods for each product. It also provides cost calculations for a glass manufacturer's production through three departments: (1) calculating conversion costs per unit for each department, (2) determining costs for clear, unetched colored, and etched colored glass sheets as they flow through production.

Uploaded by

Hương Giang
Copyright
© © All Rights Reserved
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
You are on page 1/ 3

PROBLEM 4-36

1. The unit costs and total costs for each of the products manufactured by Plasto Corporation
during the month of May are calculated as follows:

Extrusion Form Trim Finish


Units produced...................... 16,000 11,000 5,000 2,000   
Material costs........................ $192,000 $ 44,000 $15,000 $12,000   
Unit material cost........... 12.00 4.00 3.00 6.00   
Conversion costs*................. 392,000 132,000 69,000 42,000   
Unit conversion cost....... 24.50 12.00 13.80 21.00   

*Direct labor and manufacturing overhead.

Plastic Standard Deluxe Executive


Unit Costs Sheets Model Model Model
Material costs:
Extrusion........................ $12.00 $12.00 $12.00 $12.00   
Form............................... 4.00 4.00 4.00   
Trim................................ 3.00 3.00   
Finish.............................. 6.00   
Conversion costs:
Extrusion........................ 24.50 24.50 24.50 24.50   
Form............................... 12.00 12.00 12.00   
Trim................................ 13.80 13.80   
Finish.............................. _ _ _    21.00   
Total unit cost........................ $36.50 $52.50 $69.30 $96.30   
Units produced......................   5,000   6,000   3,000   2,000   
Total product cost*................ $182,500 $315,000 $207,900 $192,600   

*Total costs accounted for:

Product Total Product Costs


Plastic sheets $182,500      
Standard model 315,000      
Deluxe model 207,900      
Executive model  192,600      
Total $898,000      

2. Journal entries:

Work-in-Process Inventory: Extrusion................................ 584,000


Raw-Material Inventory............................................ 192,000
Applied Conversion Costs......................................... 392,000
Finished-Goods Inventory................................................... 182,500
Work-in-Process Inventory: Extrusion...................... 182,500

Work-in-Process Inventory: Forming.................................. 577,500


Work-in-Process Inventory: Extrusion...................... 401,500
Raw-Material Inventory............................................ 44,000
Applied Conversion Costs......................................... 132,000

Finished-Goods Inventory................................................... 315,000


Work-in-Process Inventory: Forming........................ 315,000

Work-in-Process Inventory: Trimming............................... 346,500


Work-in-Process Inventory: Forming........................ 262,500
Raw-Material Inventory............................................ 15,000
Applied Conversion Costs......................................... 69,000

Finished-Goods Inventory................................................... 207,900


Work-in-Process Inventory: Trimming..................... 207,900

Work-in-Process Inventory: Finishing................................. 192,600


Work-in-Process Inventory: Trimming..................... 138,600
Raw-Material Inventory............................................ 12,000
Applied Conversion Costs......................................... 42,000

Finished-Goods Inventory................................................... 192,600


Work-in-Process Inventory: Finishing...................... 192,600

PROBLEM 4-37 (35 MINUTES)

1. Conversion cost per unit in department I:

direct labor + manufacturing overhead


=
units produced*
$38,000 + $230,000
=
11,000 + 4,000 + 5,000
=$13. 40 per uni t

*Note that all of the products sold after processing in departments I, II, or III were
produced orginally in department I.

2. Conversion cost per unit in department II:


direct labor + manufacturing overhead
=
units produced*
$22,000+$68,000
=
4,000+5,000
=$10.00 per unit
*Note that all of the products sold after processing in departments II and III were colored
in department II.

3. Cost of a clear glass sheet:


direct material per conversion cost per
= unit in department I + unit in department I

$450,000
= +$13.40
20,000
=$35.90 per sheet
4. Cost of an unetched, colored glass sheet:
cost per clear direct material conversion cost per
= glass sheet + per unit in department II + unit in department II

$72,000
=$35.90+ +$10. 00
9,000
=$53.90 per sheet
5. Cost of an etched, colored glass sheet:
cost per unetched conversion cost per
= colored glass sheet + unit in department III

$38,000+$73,750
=$53.90+
5,000
=$76.25 per sheet

You might also like