acct 212 homework 4 chapter 20Problem 20-1A Production cost flow and measurement; journal entries L.O.
P1, P2, P3, P4
[The following information applies to
the questions displayed below.]
Edison
Company manufactures wool blankets and accounts for product costs using
process costing. The following information is available regarding its May
inventories.
Beginning
Inventory
Ending
Inventory
Raw
materials inventory
$
54,000
$
50,000
Goods
in process inventory
436,500
516,000
Finished
goods inventory
620,000
172,001
The
following additional information describes the company’s production
activities for May.
Raw
materials purchases (on credit)
$
250,000
Factory
payroll cost (paid in cash)
2,060,000
Other
overhead cost (Other Accounts credited)
100,000
Materials
used
Direct
$
209,500
Indirect
54,000
Labor
used
Direct
$
1,230,000
Indirect
830,000
Overhead
rate as a percent of direct labor
125
%
Sales
(on credit)
$
4,000,000
The
predetermined overhead rate was computed at the beginning of the year as 125%
of direct labor cost.
rev: 11_02_2011
Section Break
Learning Objective: 20-P1 Record the flow of direct materials costs in
process cost accounting.
Learning Objective: 20-P4 Record the transfer of completed goods to
Finished Goods Inventory and Cost of Goods Sold.
Problem 20-1A Production cost flow and measurement; journal entries
L.O. P1, P2, P3, P4
Learning Objective: 20-P2 Record the flow of direct labor costs in
process cost accounting.
Difficulty: Medium
Learning Objective: 20-P3 Record the flow of factory overhead costs in
process cost accounting.
1.
award:
0 out of
2.00 points
Problem 20-1A Part 1
Required:
1(a)
Compute
the cost of products transferred from production to finished goods. (Omit the “$” sign in your response.)
Cost
of products transferred
$ 902,400 .gif” alt=”incorrect”>
1(b)
Compute
the cost of goods sold. (Omit the
“$” sign in your response.)
Cost
of goods sold
$ 447,999 .gif” alt=”incorrect”>
rev: 10_31_2011
eBook Links (4)
2.
award:
4.55 out of
5.00 points
Problem 20-1A Part 2
2(a)
Prepare
journal entry dated May 31 to record the raw materials purchases. (Omit the “$” sign in your response.)
2(b)
Prepare
journal entry dated May 31 to record the direct materials usage. (Omit the “$” sign in your response.)
2(c)
Prepare
journal entry dated May 31 to record the indirect materials usage. (Omit the “$” sign in your response.)
2(d)
Prepare
journal entry dated May 31 to record the payroll costs. (Omit the “$” sign in your response.)
2(e)
Prepare
journal entry dated May 31 to record the direct labor costs. (Omit the “$” sign in your response.)
2(f)
Prepare
journal entry dated May 31 to record the indirect labor costs. (Omit the “$” sign in your response.)
2(g)
Prepare
journal entry dated May 31 to record the other overhead costs. (Omit the “$” sign in your response.)
2(h)
Prepare
journal entry dated May 31 to record the overhead applied. (Omit the “$” sign in your response.)
2(i)
Prepare
journal entry dated May 31 to record the goods transferred from production to
finished goods.(Omit the “$” sign in
your response.)
2(j)
Prepare
journal entry dated May 31 to record the sale of finished goods. (Omit the “$” sign in your response.)
eBook Links (4)
Worksheet
Learning Objective: 20-P1 Record the flow of direct materials costs in
process cost accounting.
Learning Objective: 20-P4 Record the transfer of completed goods to
Finished Goods Inventory and Cost of Goods Sold.
Problem 20-1A Part 2
Learning Objective: 20-P2 Record the flow of direct labor costs in
process cost accounting.
Difficulty: Medium
Learning Objective: 20-P3 Record the flow of factory overhead costs in
process cost accounting.
Problem 20-2A Cost per equivalent unit; costs assigned to products L.O.
C2, C3
[The following information applies to
the questions displayed below.]
Fairfax
Company uses weighted-average process costing to account for its production
costs. Direct labor is added evenly throughout the process. Direct materials
are added at the beginning of the process. During September, the company
transferred 760,000 units of product to finished goods. At the end of
September, the goods in process inventory consists of 201,000 units that are
40% complete with respect to labor. Beginning inventory had $437,255 of
direct materials and $147,070 of direct labor cost. The direct labor cost
added in September is $2,794,330, and the direct materials cost added is
$2,926,245.
Section Break
Problem 20-2A Cost per equivalent unit; costs assigned to products
L.O. C2, C3
3.
award:
0 out of
2.00 points
Problem 20-2A Part 1
Required:
1(a)
Determine
the equivalent units of production with respect to direct labor.
Equivalent
units
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1(b)
Determine
the equivalent units of production with respect to direct materials.
Equivalent
units
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eBook Links (2)
4.
award:
0 out of
2.00 points
Problem 20-2A Part 2
2.
Compute
both the direct labor cost and the direct materials cost per equivalent unit. (Round your answers to 2 decimal place. Omit the
“$” sign in your response.)
5.
award:
0 out of
2.00 points
Problem 20-2A Part 3
3(a)
Compute
both direct labor cost and direct materials cost assigned to units completed
and transferred out. (Due to rounding of cost
per unit, the total costs accounted for in the cost summary may not equal to
sum of all the costs given in the problem. Round your per unit costs to 2
decimal places and final answers to the nearest dollar amount.)
3(b)
Compute
both direct labor cost and direct materials cost assigned to ending goods in
process inventory. (Due to rounding of cost
per unit, the total costs accounted for in the cost summary may not equal to
sum of all the costs given in the problem. Round your per unit costs to 2
decimal places and final answers to the nearest dollar amount.)
Problem 20-3A Journalizing in process costing; equivalent units and
costs L.O. C2, P1, P2, P3
[The following information applies to
the questions displayed below.]
Li
Company produces large quantities of a standardized product. The following
information is available for its production activities for January.
Raw
materials
Factory
overhead incurred
Beginning
inventory
$
23,000
Indirect
materials used
$
75,500
Raw
materials purchased (on credit)
275,000
Indirect
labor used
45,000
Direct
materials used
(170,000
)
Other
overhead costs
161,040
Indirect
materials used
(75,500
)
Total
factory overhead incurred
$
281,540
Ending
Inventory
$
52,500
Factory
overhead applied
Factory
payroll
(140%
of direct labor cost)
Direct
labor used
$
201,100
Total
factory overhead applied
$
281,540
Indirect
labor used
45,000
Total
payroll cost (paid in cash)
$
246,100
Additional
information about units and costs of production activities follows.
Units
Costs
Beginning
goods in process inventory
2,300
Beginning
goods in process inventory
Started
38,000
Direct
materials
$
3,000
Ending
goods in process inventory
5,400
Direct
labor
2,700
Factory
overhead
4,200
$
9,900
Status of ending goods in
process inventory
Direct
materials added
170,000
MaterialsâPercent
complete
90
%
Direct
labor added
201,100
Labor
and overheadâPercent complete
75
%
Overhead
applied (140% of direct labor)
281,540
Total
costs
$
662,540
Ending
goods in process inventory
$
72,050
During
January, 18,000 units of finished goods are sold for $120 cash each. Cost
information regarding finished goods follows.
Beginning
finished goods inventory
$
165,000
Cost
transferred in
590,490
Cost
of goods sold
(606,390
)
Ending
finished goods inventory
$
149,100
Section Break
Learning Objective: 20-C2 Define and compute equivalent units and
explain their use in process cost accounting.
Learning Objective: 20-P3 Record the flow of factory overhead costs in
process cost accounting.
Problem 20-3A Journalizing in process costing; equivalent units and
costs L.O. C2, P1, P2, P3
Learning Objective: 20-P1 Record the flow of direct materials costs in
process cost accounting.
Difficulty: Hard
Learning Objective: 20-P2 Record the flow of direct labor costs in
process cost accounting.
6.
award:
0 out of
5.00 points
Problem 20-3A Part 1
Required:
1(a)
Prepare
journal entry dated January 31 to record the purchase of raw materials. (Omit the “$” sign in your response.)
Date
General Journal
Debit
Credit
Jan. 31
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n/r .gif” alt=”incorrect”>
n/r .gif” alt=”incorrect”>
n/r .gif” alt=”incorrect”>
1(b)
Prepare
journal entry dated January 31 to record the direct materials usage. (Omit the “$” sign in your response.)
Date
General Journal
Debit
Credit
Jan. 31
n/r .gif” alt=”incorrect”>
n/r .gif” alt=”incorrect”>
n/r .gif” alt=”incorrect”>
n/r .gif” alt=”incorrect”>
1
Date
General Journal
Debit
Credit
Jan. 31
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n/r .gif” alt=”incorrect”>
n/r .gif” alt=”incorrect”>
n/r .gif” alt=”incorrect”>
1(j)
Prepare
journal entries dated January 31 to record the sale of finished goods. (Omit the “$” sign in your response.)
Date
General Journal
Debit
Credit
Jan. 31
n/r .gif” alt=”incorrect”>
n/r .gif” alt=”incorrect”>
n/r .gif” alt=”incorrect”>
n/r .gif” alt=”incorrect”>
n/r .gif” alt=”incorrect”>
n/r .gif” alt=”incorrect”>
n/r .gif” alt=”incorrect”>
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eBook Links (4)
Worksheet
0 out of
5.00 points
Problem 20-3A Part 2
2.
n/r .gif” alt=”incorrect”>
Total
costs to account for
$ n/r .gif” alt=”incorrect”>
eBook Links (3)
Worksheet
Difficulty: Hard
Learning Objective: 20-C3 Define and prepare a process cost summary
and describe its purposes.
Problem 20-5A Part 1
Learning Objective: 20-C2 Define and compute equivalent units and
explain their use in process cost accounting.
Learning Objective: 20-P4 Record the transfer of completed goods to
Finished Goods Inventory and Cost of Goods Sold.
9.
award:
0 out of
2.00 points
Problem 20-5A Part 2
2.
Prepare
the journal entry dated October 31 to transfer the cost of completed units to
finished goods inventory. (Omit the
“$” sign in your response.)
Date
General Journal
Debit
Credit
Oct. 31
n/r .gif” alt=”incorrect”>
n/r .gif” alt=”incorrect”>
n/r .gif” alt=”incorrect”>
n/r .gif” alt=”incorrect”>
eBook Links (3)
Worksheet
Difficulty: Hard
Learning Objective: 20-C3 Define and prepare a process cost summary
and describe its purposes.
Problem 20-5A Part 2
Learning Objective: 20-C2 Define and compute equivalent units and
explain their use in process cost accounting.
Learning Objective: 20-P4 Record the transfer of completed goods to
Finished Goods Inventory and Cost of Goods Sold.
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