PROBLEM 28.2B
PAGE
POST.
REF.
1 2013 1
2 May 31 Work in Process Inventory—Fabricating Depart. 51 9 2 0 00 2
3 Work in Process—Assembly Depart. 798000 3
12 12
13 31 Work in Process Inventory—Fabricating Depart. 17 2 2 2 00 13
14 Work in Process—Assembly Department 10 4 5 5 00 14
15 Manufacturing Overhead 27 6 7 7 00 15
16 16
17 31 Work in Process—Assembly Department 99 7 5 0 00 17
18 Work in Process—Fabricating Department 99 7 5 0 00 18
19 19
GENERAL JOURNAL
DATE DESCRIPTION DEBIT CREDIT
PROBLEM 28.2B (continued)
Fabricating Department
Materials: Units transferred out to next department: 100% × 21,000 units 21 0 0 0
Work in process: 100% × 1,000 units 1 0 0 0
Equivalent units of production for materials 22 0 0 0
Labor and manufacturing overhead
Labor and manufacturing overhead
Units transferred out to finished goods: 100% × 20,000 units 20 0 0 0
Work in process: 50% × 1,000 units 5 0 0
Equivalent units of production for labor and overhead 20 5 0 0
Box Makers, Inc.
Equivalent Units Production Computations
Month Ended May 31, 2013
PROBLEM 28.2B (continued)
QUANTITY SCHEDULE
(a) Quantity to be accounted for
Started in production 22000
Total to be accounted for 22000
(b) Quantity accounted for
COST SCHEDULE
(c) Costs to be accounted for
Costs in current department
Materials 5192000÷ 22 000= 236
Labor 3488000÷ 21 800= 160
Manufacturing overhead 1722200÷ 21 800= 079
Cumulative cost total 104 0 2 2 00 4 75
(d) Costs accounted for
Box Makers, Inc.
TOTAL COST E.P. UNITS* UNIT COST
Cost of Production Report-Fabricating Department
Month Ended May 31, 2013
UNITS
PROBLEM 28.2B (continued)
QUANTITY SCHEDULE
(a) Quantity to be accounted for
Total accounted for 21000
COST SCHEDULE
(c) Costs to be accounted for
Costs in prior department 9975000÷ 21 000= 475
Costs in current department
Materials 798000÷ 21 000= 038
Labor 1476000÷ 20 500= 072
Manufacturing overhead 1045500÷ 20 500= 051
Total current department costs 3319500 161
TOTAL COST E.P. UNITS* UNIT COST
Box Makers, Inc.
Cost of Production Report-Assembly Department
Month Ended May 31, 2013
UNITS
PROBLEM 28.3B
First Department
Materials: Units transferred out to next department: 100% × 47,000 units 47 0 0 0
Work in process: 100% × 3,000 units 3 0 0 0
Equivalent Unit Production Computations
Month Ended April 30, 2013
NC Chemical Company
PROBLEM 28.3B (continued)
QUANTITY SCHEDULE
(a) Quantity to be accounted for
Work in process—beginning 2000
Started in production 48 0 0 0
COST SCHEDULE
(c) Costs to be accounted for
Costs in current department
Work in process—beginning
Materials 650000
Labor 530000
Overhead 258000
Rounding adjustment 0 00
Total work in process—ending 480000
Total costs accounted for 97 8 6 0 00
*Equivalent Production Units or
Equivalent Units of Production
NC Chemical Company
TOTAL COST E.P. UNITS* UNIT COST
Equivalent Unit Production Computations
Month Ended April 30, 2013
UNITS
CRITICAL THINKING PROBLEM 28.1
Mixing Department
Materials: Units transferred out to next department: 100% × 30,000 units 30 0 0 0
Work in process: 100% × 1,000 units 1 0 0 0
Month Ended May 31, 2013
Texas Manufacturing, Inc.
Equivalent Unit Production Computations
CRITICAL THINKING PROBLEM 28.1 (continued)
(a) Quantity to be accounted for
Work in process—beginning 1000
Started in production 30 0 0 0
COST SCHEDULE
(c) Costs to be accounted for
(d) Costs accounted for
Transferred out to next department 201 0 0 0 00 = 30 0 0 0 × 6 70
Work in process—ending
Materials 261000 = 1 000 × 261
Labor 120000 500 × 240
Texas Manufacturing, Inc.
TOTAL COST E.P. UNITS* UNIT COST
Cost of Production Report
Month Ended May 31, 2013
QUANTITY SCHEDULE
Mixing Department
UNITS
CRITICAL THINKING PROBLEM 28.1 (continued)
Texas Manufacturing, Inc.
Equivalent Unit Production Computations
Month Ended May 31, 2013
Work in Process
,
Jul
y
1
Work
in
Process
,
July
1
$2 150 $500 $300 $2 950
$2
,
150 + $500 + $300 = $2
,
950
$2,150
$500
$300
$2,950
Finished Goods Inventory July 1
Fi
n
i
s
h
e
d
G
oo
d
s
I
nventory,
J
u
l
y
1
y, y
,
,
=
,
Cost
for
$10
000
+
$4
000
$4
Work
in
Process
Inventory,
$6
$1
Fi
i
h
d
G
d
I
J
l
31
$4
$6
$10,000
+
$4,000
$3,500
SOLUTIONS TO BUSINESS CONNECTIONS
Managerial Focus:
1. The choice of system depends on types of products manufactured and how orders are filled (special or
2. Quantity can be easily determined by review of account balance. This facilitates the prompt and efficient
ordering of raw materials to maintain a proper level of finished goods.
Ethical Dilemma:
Financial Statement Analysis:
Teamwork:
Internet Connection:
Virginia overstating the ending inventory has violated business ethics by not recording correct information.
The three processes to create cement lends it to process costing. Each activity is dependent on the previous
activity before it can start its assigned task. Job costing could be used if the process started with a customer order
and only the amount ordered by the customer was produced in a batch.
Part A True-False
1. FALSE 9. TRUE
3. TRUE 11. TRUE
5. TRUE 13. FALSE
7. TRUE 15. TRUE
Part B Completion
1. job order cost
3. service
5. producing (or production)
7. process cost
Part C Exercises
1. Transferred to next department
(5,000 × 100%) = 5,000
2. Transferred to next department
(4,500 × 100%) = 4,500
3. Transferred to next department
(900 × 100%) = 900
SOLUTIONS TO PRACTICE TEST