CHAPTER 17 (FIN MAN); CHAPTER 3 (MAN) Process Cost Systems
Prob. 17–4A (FIN MAN); Prob. 3–4A (MAN) (Continued)
Hearty Soup Co.
Cost of Production Report—Filling Department
For the Month Ended April 30
UNITS
Whole
Units
Equivalent Units
Direct
Materials
(a)
Conversion
(a)
Units charged to production:
Inventory in process, April 1
800
Received from Cooking Department
7,800
Total units accounted for by the
Inventory in process, April 1
800
550
550
CHAPTER 17 (FIN MAN); CHAPTER 3 (MAN) Process Cost Systems
Prob. 17–4A (FIN MAN); Prob. 3–4A (MAN) (Continued)
Costs
Direct
Materials
Conversion
Total
$ 34,320
$14,9491
÷ 7,800
÷ 8,305
$ 4.40
$ 1.80
$53,129
$ 3,860
$ 0
$ 1,0083
1,008
1 $8,562 + $6,387
2 $34,320 + $8,562 + $6,387
3 560 units × $1.80
4 7,250 units × $4.40
CHAPTER 17 (FIN MAN); CHAPTER 3 (MAN) Process Cost Systems
Prob. 17–4A (FIN MAN); Prob. 3–4A (MAN) (Continued)
2.
Hearty Soup Co.
Cost of Production Report—Filling Department
For the Month Ended May 31
UNITS
Whole
Units
Equivalent Units
Direct
Materials
(a)
Conversion
(a)
Units charged to production:
Inventory in process, May 1
550
Received from Cooking Department
9,600
Total units accounted for by the
Filling Department
10,150
Units to be assigned costs:
Inventory in process, May 1
Started and completed in May
Transferred to finished goods in May
9,850
9,300
Inventory in process, May 31
CHAPTER 17 (FIN MAN); CHAPTER 3 (MAN) Process Cost Systems
Prob. 17–4A (FIN MAN); Prob. 3–4A (MAN) (Concluded)
COSTS
Costs
Direct
Materials
Conversion
Total
Cost per equivalent unit:
Total costs for May in Filling
Department
$44,160
$18,9201
Total equivalent units
Cost per equivalent unit (b)
Inventory in process, May 1
Costs incurred in May
Total costs accounted for by the
Costs allocated to completed and
partially completed units:
Inventory in process, May 1 balance (c)
$ 3,311
To complete inventory in process,
Cost of completed May 1 work in
$ 3,421
Started and completed in May (c)
Transferred to finished goods in
Inventory in process, May 31 (d)
Total costs assigned by the Filling
1 $12,042 + $6,878
2 $44,160 + $12,042 + $6,878
3 55 units × $2.00
4 9,300 units × $4.60
3. The cost per equivalent unit for direct materials increased from $4.30 in March
to $4.40 in April to $4.60 in May. Similarly, the cost per equivalent unit for
conversion costs increased from $1.75 in March to $1.80 in April to $2.00 in
CHAPTER 17 (FIN MAN); CHAPTER 3 (MAN) Process Cost Systems
Appendix Prob. 17–5A (FIN MAN); Appendix Prob. 3–5A (MAN)
Sunrise Coffee Company
Cost of Production Report—Roasting Department
For the Month Ended December 31
UNITS
Whole
Units
Equivalent Units
of Production
Units charged to production:
Inventory in process, December 1
Received from materials storeroom
Total units accounted for by the
Units to be assigned costs:
Transferred to Packing Department in
December
208,900
208,900
Inventory in process, December 31
(25% completed)
12,0001
3,0002
Total units to be assigned costs
220,900
211,900
1 10,500 units + 210,400 units – 208,900 units
2 25% units × 12,000 units
COSTS
Cost per equivalent unit:
Total costs for December in Roasting Department
$ 572,130
Cost per equivalent unit
$ 2.70
Costs charged to production:
Inventory in process, December 1
Total costs accounted for by the Roasting Department
$ 572,130
Costs allocated to completed and partially completed units:
Transferred to Packing Department in December
(208,900 units × $2.70)
$ 564,030
Inventory in process, December 31
Total costs assigned by the Roasting Department
* $246,800 + $135,700 + $168,630
CHAPTER 17 (FIN MAN); CHAPTER 3 (MAN) Process Cost Systems
Prob. 17–1B (FIN MAN); Prob. 3–1B (MAN)
1.
a.
Materials
149,800
Accounts Payable
149,800
Work in Process—Making Department
105,700
Work in Process—Packing Department
31,300
Factory Overhead—Making Department
4,980
Factory Overhead—Packing Department
1,530
143,510
c.
Work in Process—Making Department
32,400
Work in Process—Packing Department
40,900
Factory Overhead—Making Department
15,400
Factory Overhead—Packing Department
18,300
Wages Payable
107,000
Factory Overhead—Making Department
10,700
Factory Overhead—Packing Department
7,900
Accumulated Depreciation
e.
Factory Overhead—Making Department
2,000
Factory Overhead—Packing Department
1,500
Prepaid Insurance
3,500
Work in Process—Making Department
32,570
Work in Process—Packing Department
30,050
Factory Overhead—Making Department
Factory Overhead—Packing Department
g.
Work in Process—Packing Department
166,790
Work in Process—Making Department
166,790
h.
Finished Goods
263,400
Work in Process—Packing Department
263,400
Cost of Goods Sold
CHAPTER 17 (FIN MAN); CHAPTER 3 (MAN) Process Cost Systems
Prob. 17–1B (FIN MAN); Prob. 3–1B (MAN) (Concluded)
2.
Work in
Process—
Making Dept.
Work in
Process—
Packing Dept.
Finished
Goods
Materials
Balance, July 1 ………..
$ 5,100
$ 6,790
$ 7,350
$ 13,500
Debits …………………….
149,800
170,6701
269,0402
263,400
3.
Factory Overhead—
Making Dept.
Factory Overhead—
Packing Dept.
Balance, July 1 ……….
$ 0
$ 0
Debits …………………….
33,0801
29,2302
CHAPTER 17 (FIN MAN); CHAPTER 3 (MAN) Process Cost Systems
Prob. 17–2B (FIN MAN); Prob. 3–2B (MAN) 1.
Bavarian Chocolate Company
Cost of Production Report—Blending Department
For the Month Ended October 31
UNITS
Whole
Units
Equivalent Units
Direct
Materials
Conversion
Units charged to production:
Inventory in process, October 1
2,300
Received from materials storeroom
26,000
Total units accounted for by the
28,300
Inventory in process, October 1
2,300
Started and completed in October
23,4002
23,400
23,400
Transferred to Molding Department in
October
25,700
23,400
24,320
Inventory in process, October 31
1 2,300 units × (1 – 3/5)
2 25,700 units – 2,300 units
3 2,300 units + 26,000 units – 25,700 units
4 2,600 units × 1/5
CHAPTER 17 (FIN MAN); CHAPTER 3 (MAN) Process Cost Systems
Prob. 17–2B (FIN MAN); Prob. 3–2B (MAN) (Continued)
COSTS
Costs
Direct
Materials
Conversion
Total
Cost per equivalent unit:
Total costs for October in Blending
Department
$429,000
$149,0401
Total equivalent units
Cost per equivalent unit
Costs charged to production:
Inventory in process, October 1
$ 46,368
Costs incurred in October
578,0402
Total costs accounted for by the
Costs allocated to completed and
Inventory in process, October 1 balance
To complete inventory in process,
October 1
$ 5,5203
5,520
Cost of completed October 1 work in
$ 51,888
process
Started and completed in October
$386,1004
140,4005
526,500
Transferred to Molding Department
in October
Inventory in process, October 31
Total costs assigned by the Blending
$578,388
Costs transferred to Molding Department: $578,388
Work in process, October 31: 2,600 units at a cost of $46,020
1 $100,560 + $48,480
2 $429,000 + $100,560 + $48,480
3 920 units × $6.00
CHAPTER 17 (FIN MAN); CHAPTER 3 (MAN) Process Cost Systems
Prob. 17–2B (FIN MAN); Prob. 3–2B (MAN) (Concluded)
2.
Direct materials:
Decrease of $0.15 ($16.50 – $16.65)
Conversion:
Increase of $0.15 ($6.00 – $5.85)
Computations:
CHAPTER 17 (FIN MAN); CHAPTER 3 (MAN) Process Cost Systems
Prob. 17–3B (FIN MAN); Prob. 3–3B (MAN)
1.
Dover Chemical Company
Cost of Production Report—Filling Department
For the Month Ended January 31
UNITS
Whole
Units
Equivalent Units
Direct
Materials
Conversion
Units charged to production:
Inventory in process, January 1
3,400
Received from Reaction Department
52,300
Total units accounted for by the
Filling Department
55,700
Units to be assigned costs:
Inventory in process, January 1
3,400
49,600
Transferred to finished goods in January
Inventory in process, January 31
2,700
2,700
CHAPTER 17 (FIN MAN); CHAPTER 3 (MAN) Process Cost Systems
Prob. 17–3B (FIN MAN); Prob. 3–3B (MAN) (Continued)
COSTS
Costs
Direct
Materials
Conversion
Total
Cost per equivalent unit:
Total costs for January in Filling
Department
$496,850
$196,7261
Total equivalent units
Cost per equivalent unit
Costs charged to production:
Filling Department
$734,104
Costs allocated to completed and
partially completed units:
Inventory in process, January 1 balance
$ 40,528
To complete inventory in process,
Cost of completed January 1 work in
process
Transferred to finished goods in
January
Total costs assigned by the Filling
1 $101,560 + $95,166
2 $496,850 + $101,560 + $95,166
3 1,360 units × $3.80
CHAPTER 17 (FIN MAN); CHAPTER 3 (MAN) Process Cost Systems
Prob. 17–3B (FIN MAN); Prob. 3–3B (MAN) (Concluded)
2.
Work in Process—Filling Department
496,850
Work in Process—Reaction Department
496,850
3. Direct materials: $(0.08) decrease ($9.50 – $9.58)
Conversion: $(0.10) decrease ($3.80 – $3.90)
4. The cost of production report may be used as the basis for allocating product
costs between Work in Process and Finished Goods. The report can also be
CHAPTER 17 (FIN MAN); CHAPTER 3 (MAN) Process Cost Systems
Prob. 17–4B (FIN MAN); Prob. 3–4B (MAN)
1. and 2.
Work in Process—Rolling
Date
Item
Dr.
Cr.
Balance
Dr.
Cr.
Sept.
1
Bal., 2,600 units, 1/4 completed
45,825
30
Smelting Dept., 28,900 units at
$16.00/unit
462,400
508,225
30
Direct labor
158,920
667,145
$16.50/unit
511,500
577,852
31
Direct labor
162,850
740,702
31
Finished goods*
805,156
31
Bal., 2,000 units, 2/5 completed
CHAPTER 17 (FIN MAN); CHAPTER 3 (MAN) Process Cost Systems
Prob. 17–4B (FIN MAN); Prob. 3–4B (MAN) (Continued)
Pittsburgh Aluminum Company
Cost of Production Report—Rolling Department
For the Month Ended September 30
UNITS
Whole
Units
Equivalent Units
Direct
Materials
(a)
Conversion
(a)
Units charged to production:
Inventory in process, September 1
2,600
Received from Smelting Department
28,900
Total units accounted for by the
Rolling Department
Inventory in process, September 1
(1/4 completed)
2,600
0
1,9501
Started and completed in September
26,0002
26,000
26,000
Transferred to finished goods in
September
28,600
26,000
27,950
Inventory in process, September 30
(4/5 completed)
2,900
2,900
CHAPTER 17 (FIN MAN); CHAPTER 3 (MAN) Process Cost Systems
Prob. 17–4B (FIN MAN); Prob. 3–4B (MAN) (Continued)
COSTS
Costs
Direct
Materials
Conversion
Total
Cost per equivalent unit:
Total costs for September in Rolling
Department
$462,400
$260,3221
Total equivalent units
Cost per equivalent unit (b)
$ 45,825
Costs incurred in September
Total costs accounted for by the
Rolling Department
$768,547
Costs allocated to completed and
partially completed units:
Inventory in process, September 1
balance (c)
$ 45,825
Started and completed in September (c)
Total costs assigned by the Rolling
1 $158,920 + $101,402
2 $462,400 + $158,920 + $101,402
3 1,950 units × $8.60
4 26,000 units × $16.00