Unlock document.
This document is partially blurred.
Unlock all pages and 1 million more documents.
Get Access
76.
Job order and process costing systems
There are two distinct types of cost accounting systems: job order costing systems and
process costing systems. How does management decide whether to use a job order costing
system or a process costing system in any given manufacturing situation? Explain briefly.
18-38
77.
Process costing system-journal entries
Milton Manufacturing uses a process costing system. Products are processed successively
by Department X and Department Y and are then transferred to the finished goods
warehouse. Shown below is cost information for Department Y during the month of May:
The cost of work in process in Department Y at May 31 has been determined to be
$113,500.
In the space provided, prepare a general journal entry to summarize for the month of May
each of the following categories of transactions (you may omit explanations):
(a.) The transfer of production from Department X to Department Y.
(b.) The recording of manufacturing costs incurred in Department Y during May. (Use a
single journal entry.)
(c.) The transfer of completed units from Department Y to the finished goods warehouse.
18-40
78.
Process costing system-journal entries
Joyce Industries uses a process costing system. All of the company's manufacturing
activities take place in a single processing department. There was no beginning inventory
in May. During the month, $60,000 of materials were added and $40,000 of labor and
$75,000 of overhead costs were charged to work in process. The entire work in process
inventory of 20,000 units was completed and transferred to finished goods. Of these 20,000
units, 15,000 were sold on account at $14 per unit.
In the space provided, prepare a general journal entry to summarize each of the following
categories of transactions for the month of May (you may omit explanations):
(a.) The recording of manufacturing costs applied to production (use a single journal entry).
(b.) The transfer of completed units from work in process to the finished goods warehouse.
(c.) The sale of 15,000 units manufactured during the month and the related cost of goods
sold.
18-42
79.
Equivalent units
In the first month of operations, the manufacturing costs for Blue Sun Company were as
follows:
During the month 10,000 units were completed, and 5,000 units were in process at the end
of the month. The 5,000 units in process were 100% completed as to materials and 80%
completed as to direct labor and overhead. Compute the following:
(a) Direct materials cost per equivalent unit: $_______________
(b) Equivalent units of production for direct labor and manufacturing overhead:
________________
(c) Direct labor cost per equivalent unit: $________________
(d) Manufacturing overhead cost per equivalent unit: $________________
(e) Total cost of 10,000 units completed: $________________
(f) Total cost of 5,000 units in process at the end of the month: $________________
18-44
80.
Process costing with equivalent units and beginning inventory
The records of Westminster Manufacturing Company for the month of May show the
following costs in Department A:
The beginning inventory for May consisted of 10,000 units which were 80% complete as to
direct materials and 60% complete as to labor and overhead. A total of 100,000 units were
completed and transferred out during May, and 20,000 units remained in the work in
process inventory. The ending inventory was 80% complete as to direct materials and 40%
complete as to labor and overhead. Compute the following:
(a) Direct materials cost per equivalent unit: $_______________
(b) Equivalent units of production for direct labor and overhead: ________________
(c) Total cost of 100,000 units completed: $________________
(d) Total cost of 20,000 units in process at the end of the month: $________________
18-46
81.
Elmer Corporation has the following information for the month of October, its first month of
operations: Round intermediate calculations to two decimal places
Costs added in October:
(1.) Determine the equivalent units of production for October.
(2.) Determine the cost of the ending work in process.
(3.) Determine the cost of goods completed.
(4.) If the company sold ¾ of its completed goods for $264,000, what is the gross profit?
82.
Monfort Company had the following information
(1.) What are equivalent units of production for materials?
(2.) What was the cost per equivalent unit of production for materials during the period?
(Round your final answer to two decimal places.)
(3.) What were the equivalent units of production for conversion cost?
(4.) What was the cost per equivalent unit of production for conversion costs? (Round your
final answer to two decimal places.)
83.
Equivalent units
What is meant by the term equivalent units? How is this concept used in computing
average unit costs?
84.
Process costing system-determining unit costs
Houston Oil Company uses a process costing system with two departments: (a) a Refining
Department and (b) a Packaging Department. During June, its first month of operations,
the company manufactured and sold 650,000 gallons of motor oil, generating total revenue
of $3,845,000. The company incurred the following manufacturing costs in June:
(a) How much was the unit cost per gallon of oil processed by the Refining Department in
June?
(b) If each case of oil contains four gallons, how much was the unit cost per case incurred
by the Packaging Department in June?
(c) How much was the unit cost per case transferred to finished goods in June? (Round
your final answer to one decimal place.)
(d) How much total gross profit was generated by the company in June? (Do not round
intermediate calculations)
