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    Problem 4.36,37

    Uploaded by

    Hương Giang
    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.

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    Problem 4.36,37

    Uploaded by

    Hương Giang
    29 views3 pages
    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.

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    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.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    29 views3 pages

    Problem 4.36,37

    Uploaded by

    Hương Giang
    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.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    of 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

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