8-121
118.
The Safety Chemical Company produces a special kind of body oil that is widely used by
professional sports trainers. The oil is produced in three processes: Refining, Blending,
and Mixing. Raw oil materials are introduced at the beginning of the refining process. A
“mountain-air scent” material is added in the blending process when processing is 50%
completed.
The following Work–in-Process account for the Refining Department is available for the
month of July. The July 1 Work-in–Process Inventory contains $1,500 in material costs.
Work-in-Process: Refining
Beginning balance (5,000 gal, 80%
complete)
$6,500
Materials (30,000 gal.)
12,300
Direct labor
14,500
Overhead
21,750
Ending balance (6,000 gal., 2/3 complete)
8-123
119.
The Rosa Lee Manufacturing Company produces a single product in a single processing
department. The material is added when 25% of the conversion costs have been added.
The Work-in-Process Inventory account on April 30th includes the following information:
$1,682
($600 is materials)
5,325
10,863
15,012
8-125
120.
Pattern Corporation uses the FIFO method in its process costing. The following data
pertain to its Cutting Department for August.
Percent Complete
Units
Materials
Conversion
Work-in-process,
August 1
500
50%
45%
Units started into
production during
August
8,100
Units completed
during August and
transferred to the
next department
7,200
Work-in-process,
August 31
1,400
75%
30%
8-127
121.
The following data pertain to the Grinding Department of Dancer Corporation for July. The
company uses the FIFO method in its process costing.
Percent Complete
Units
Materials
Conversion
Work-in-process, July 1
900
60%
25%
Units started into production
during July
6,700
Units completed during July
and transferred to the next
department
5,700
Work-in-process, July 31
1,900
70%
30%
Work-in-process, July 1:
Units started and
completed in July
Work-in-process, July 31:
8-129
122.
Mobility, Inc. uses the FIFO method in its process costing system. The following data
concern the operations of the company’s first processing department – Shaping – for a
recent month.
Work-in-process, beginning:
Units in process
500
Percent complete with respect to
materials
70%
Percent complete with respect to
conversion
40%
Units started into production during the
month
28,000
Work-in-process, ending:
Units in process
100
Percent complete with respect to
materials
50%
Percent complete with respect to
conversion
30%
8-131
123.
Galaxy Corporation uses the FIFO method in its process costing. The following data
pertain to its Assembly Department for June.
Units in process, June 1: materials 55%
complete, conversion 15% complete
800
Units started into production during June
5,200
Units completed and transferred to the
next department
4,300
Units in process, June 30: materials 50%
complete, conversion 40% complete
1,700
Materials: 800 units ×
(100% – 55%)
Ending work-in-process:
8-133
124.
The following data have been provided by Brice Corporation for the 3-D Printing
Department. The company uses the FIFO method in its process costing.
Units in process, August 1: materials 60%
complete, conversion 30% complete
900
Units started into production during August
8,400
Units started and completed during August
6,500
Units completed and transferred to the
next department during August
7,400
Units in process, August 31: materials 65%
complete, conversion 25% complete
1,900
8-135
125.
The Microprocessor Manufacturing Company produces a single product in a single
processing department. The material is added when 25% of the conversion costs have
been added.
The Work-in-Process Inventory account on April 30th includes the following information:
Beginning balance
$1,382
Material
5,325
Labor
10,863
Overhead
15,012
8-137
126.
The Safety Chemical Company produces a special kind of body oil that is widely used by
professional sports trainers. The oil is produced in three processes: Refining, Blending,
and Mixing. Raw oil materials are introduced at the beginning of the refining process. A
“mountain-air scent” material is added in the blending process when processing is 50%
completed.
The following Work–in-Process account for the Refining Department is available for the
month of July. The July 1 Work-in–Process Inventory contains $1,500 in material costs.
Work-in-Process: Refining
Beginning balance (5,000 gal, 80%
complete)
$6,500
Materials (30,000 gal.)
12,300
Direct labor
14,500
Overhead
21,750
Ending balance (6,000 gal., 2/3 complete)
The following Work–in-Process account for the Blending Department is available for the
month of July. The July 1 Work-in–Process inventory contains $5,920 in material costs, and
$1.56/unit in costs transferred in from the Refining Department.
Work-in-Process: Blending
Beginning balance (8,000 gal, 30%
complete)
$22,850
Costs transferred in from Refining
???
Materials
20,810
Direct labor (725 hours)
5,748
Overhead
11,600
Ending balance (4,000 gal., 40%
complete)
The Safety Chemical Company uses first-in, first-out (FIFO) costing for the Refining
Department and weighted-average costing for the Blending Department.
8-138
8-140
127.
The Safety Chemical Company produces a special kind of body oil that is widely used by
professional sports trainers. The oil is produced in three processes: Refining, Blending,
and Mixing. Raw oil materials are introduced at the beginning of the refining process. A
“mountain-air scent” material is added in the blending process when processing is 50%
completed.
The following Work–in-Process account for the Refining Department is available for the
month of July. The July 1 Work-in–Process Inventory contains $1,500 in material costs.
Work-in-Process: Refining
Beginning balance (5,000 gallons, 80%
complete)
$7,500
Materials (30,000 gallons)
12,300
Direct Labor
14,500
Overhead
21,750
Ending balance (6,000 gallons, 2/3
complete)