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Exercise 20-20 (30 minutes)
1.
Units to account for Units Accounted For
Beginning work in process.....................
2,000 Completed & transferred out............................................................................................23,000
2. and 3.
Equivalent Units of Production (EUP)
Direct
Materials
Conversion
Units completed and transferred out.................
23,000 EUP 23,000 EUP
4. and 5.
Cost per EUP
Direct
Materials Conversion
Costs of beginning work in process......... $ 45,000 $ 56,320
[Continued on next page]
Exercise 20-20 (concluded)
6.
Costs transferred out
Direct materials [$14.00 per EUP x 23,000 EUP]....... $322,000
7.
Cost of ending work in process
Direct materials [$14.00 per EUP x 7,000 EUP]......... 98,000
Exercise 20-21 (10 minutes)
1. Raw Materials Inventory ..............................................80,000
Accounts Payable .................................................. 80,000
Purchased materials on credit.
Exercise 20-22 (10 minutes)
1. Work in Process Inventory...........................................75,000
Factory Payroll Payable.......................................... 75,000
Incurred direct labor costs.
Exercise 20-23 (5 minutes)
1. Factory Overhead ........................................................38,750
Exercise 20-24 (5 minutes)
1. Finished Goods Inventory............................................135,600
2. Accounts Receivable....................................................315,000
Exercise 20-25 (25 minutes)
1.
Oct. 31 Work in Process Inventory...........................................522,000
2.
Oct. 31 Work in Process Inventory...........................................130,000
3.
Oct. 31 Work in Process Inventory...........................................227,500
4.
5.
Exercise 20-26 (25 minutes)
a. Purchased raw materials on credit at a cost of $52,000.
b. Used direct materials costing $42,000 in production.
g. Paid total factory payroll of $38,000.
Exercise 20-27 (10 minutes)
A hybrid costing system contains features of both process costing and job
Products or services that might well fit a hybrid costing system would be
PROBLEM SET A
Problem 20-1A (45 minutes)
Part 1: Cost of goods transferred and cost of goods sold
Beginning work in process inventory................................... $ 435,000
Direct materials used in production...................................... 157,500
Part 2: Summary journal entries
a.
May 31 Raw Materials Inventory ..............................................250,000
b.
May 31 Work in Process Inventory...........................................157,500
c.
Problem 20-1A (Continued)
d.
May 31 Work in Process Inventory ..........................................780,000
Factory Payroll Payable.......................................... 780,000
Incurred direct labor costs.
e.
j.
May 31 Accounts Receivable ...................................................2,500,000
Sales ....................................................................... 2,500,000
Sold finished goods.
May 31 Cost of Goods Sold .....................................................1,782,500
To record cost of goods sold for May.
