208) Kominski Company completed and transferred 90,000 units during the current period.
Based on the following information, determine the cost of the units completed during the current
reporting period and journalize the transfer.
Direct
Materials
Direct
Labor/OH
Costs of Beginning Work in Process:
$576,000
$400,000
Costs incurred this period
2,400,000
5,120,000
Equivalent units of production
96,000
92,000
Costs of Beginning Work in Process:
$576,000
Costs incurred this period
$2,400,000
Total costs incurred
$2,976,000
Equivalent units of production
Cost per EUP
Costs of units transferred out
Total costs transferred out
209) Grayson Company had 8,700 units in beginning inventory with accumulated costs for direct
materials of $17,900, $16,500 direct labor, and $13,200 of overhead. During July, the company
completed and transferred 50,000 units to finished goods. Costs incurred in the current period
included $45,000 of direct materials, $58,500 of direct labor, and $46,800 of factory overhead.
Ending inventory consisted of 12,000 units which were 90% complete with respect to materials
and 50% complete with respect to labor and overhead. Compute the value assigned to ending
inventory based on the weighted average method of inventory costing.
210) During the year, LT Corp. introduced 132,000 units into production and 144,000 units were
completed and transferred to finished goods. At the end of the year, the company had 13,600
units in process that were 80% complete. Determine how many units the company had in Work
in Process at the beginning of the year.
211) The following table of cost information is available for the Renaldo Company for the month
of November:
Goods in
Process
Inventory–
Mixing
Goods in
Process
Inventory–
Molding
Finished
Goods
Inventory
Beginning Inventory…………………
$12,000
$15,000
$24,000
Costs incurred:
Direct materials………………
22,000
14,000
Direct labor……………………
32,000
17,000
Overhead applied………………
47,000
24,500
Costs transferred out…………
(100,000)
(152,000)
Costs transferred in……………
100,000
152,000
Cost of goods sold……………
(149,000)
Ending inventory……………………
13,000
18,500
27,000
Based on the table of cost information above, prepare the general journal entry required to record
the:
a. Transfer of goods from the molding department to the finished goods inventory.
b. Cost of goods sold for November.
Finished Goods Inventory…………………………
Work in Process Inventory – Molding………
b.
Cost of Goods Sold………………………………
Finished Goods Inventory……………………
212) Prepare general journal entries to record the following production activities for Oaks
Manufacturing.
a. Purchased $82,000 of raw materials on credit.
b. Used $63,500 of direct materials in production.
c. Used $12,800 of indirect materials.
213) Prepare journal entries to record the following production activities for Oaks
Manufacturing.
a. Used $93,900 of direct labor in the production department.
b. Used $11,200 of indirect labor.
214) Prepare journal entries to record the following production activities for Oaks
Manufacturing.
a. Incurred overhead costs of $79,000 (paid in cash).
b. Applied overhead at 110% of direct labor costs which are $93,900.
c. Transferred completed products with a cost of $258,200 to finished goods inventory.
d. Sold $602,000 of product on credit. Cost is $271,000.
145
215) Port Manufacturing Company uses a process costing system. Materials are added at the
beginning of the process. Direct labor and overhead are added evenly throughout the process.
The company uses monthly reporting periods for its weighted-average process costing. The
following are the operating and cost data information for October.
The October 1 beginning Work in Process Inventory consisted of 20,000 units. The costs for this
inventory are $82,500 of direct materials, $24,400 of direct labor, and $48,800 of factory
overhead. Factory overhead is applied at 200% of direct labor cost.
In addition to the beginning inventory costs, the company issued the following costs into Work
in Process Inventory; direct materials, $240,000; direct labor, $68,000; factory overhead,
$136,000.
During October, the company completed and transferred 60,000 units of its product to finished
goods. At the end of the month, the Work in Process inventory consisted of 15,000 units that
were 40% complete with respect to direct labor and factory overhead and 100% complete with
respect to materials.
Prepare the company’s process cost summary for October using the weighted average method.
216) Process operations, also called process manufacturing or process production, is the
________ production of similar products in a ________ flow of sequential steps.
217) An ________is the number of units that could have been started and completed given the
costs incurred during the period.
218) If a process has ________ or ________ inventory of partially completed production,
equivalent units must be calculated so that total costs incurred during the period are assigned to
all units worked on.
219) The second step in accounting for production activity in a period, after determining the
physical flow of units, is to compute ________.
220) The third step in accounting for production activity in a period, before assigning and
reconciling costs, is to compute the ________.
221) The fourth step in accounting for production activity in a period is to prepare a cost
reconciliation, which ________ and ________ costs.
222) Materials and labor costs that are clearly associated with a specific process or department
are known as ________. Those costs that are not clearly associated with a specific process or
department are called ________.
223) A ________ contains features of both process and job order costing systems.
224) In a process costing system, direct materials used are debited to the ________ account, and
indirect materials used are debited to the ________ account.
225) In a manufacturing operation with two process departments (1 and 2), the flow of costs
would proceed from Work in Process, Department #1 to ________.
226) In a process costing accounting system, factory wages are debited to ________, when direct
labor is used. When indirect labor is used, the ________ account is debited. In both cases the
________ is credited.
227) In process costing, a ________ is used to apply factory overhead.
228) A process cost summary involves computations and analysis at four sequential steps. These
are (1) ________ (2) ________, (3) ________, and (4) ________.
229) On a process cost summary, the total costs to account for (the processing costs for the
period plus the Work in Process at the end of the period) should equal ________ (________ plus
________).
230) When the final production department completes goods, the cost of the completed goods are
transferred to ________.
231) When the completed goods are sold, the cost of the completed goods are transferred to
________.