All Related Questions of Work In Process

Q: Maddox Specialty Company, a division of Lost World Inc., manufactures

Maddox Specialty Company, a division of Lost World Inc., manufactures three models of gear shift components for bicycles that are sold to bicycle manufacturers, retailers, and catalog outlets. Since b...

Q: Prior to 2014, Heberling Inc. excluded manufacturing overhead costs from

Prior to 2014, Heberling Inc. excluded manufacturing overhead costs from work in process and finished goods inventory. These costs have been expensed as incurred. In 2014, the company decided to chang...

Q: Sube Specialty Corp., a division of FH Inc., manufactures three

Sube Specialty Corp., a division of FH Inc., manufactures three models of gearshift components for bicycles that are sold to bicycle manufacturers, retailers, and catalogue outlets. Since beginning op...

Q: O’Reilly Manufacturing, Inc.’s cost of goods sold for the

O’Reilly Manufacturing, Inc.’s cost of goods sold for the month ended July 31 was $345,000. The ending work in process inventory was 90% of the beginning work in process inventory. Factory overhead wa...

Q: Fayetteville Manufacturing Co. produces only one product. You have obtained

Fayetteville Manufacturing Co. produces only one product. You have obtained the following information from the corporation’s books and records for the year ended December 31, 2011: a. Total manufactur...

Q: St. Lawrence Manufacturing Co. manufactures engines that are made only

St. Lawrence Manufacturing Co. manufactures engines that are made only on customers’ orders and to their specifications. During January, the company worked on Jobs 007, 008, 009, 010...

Q: The adjusted trial balance for Indy Furniture Company on November 30,

The adjusted trial balance for Indy Furniture Company on November 30, the end of its first month of operation, is as follows: The general ledger reveals the following additional data: a. There were...

Q: The post-closing trial balance of Beamer Manufacturing Co. on

The post-closing trial balance of Beamer Manufacturing Co. on April 30 is reproduced as follows: During the month of May, the following transactions took place: a. Purchased raw materials at a cost o...

Q: Selected account balances and transactions of Alpine Manufacturing Co. follow:

Selected account balances and transactions of Alpine Manufacturing Co. follow: May Transactions: a. Purchased raw materials and factory supplies on account at costs of $45,000 and $10,000, respectiv...

Q: In tabular form, compare the total materials cost transferred to Work

In tabular form, compare the total materials cost transferred to Work in Process and the cost of the ending inventory for each method used in E2-6, E2-7, and E2-8. Discuss the effect that each method...

Q: Venus, Inc., manufactures tennis clothing. During the month,

Venus, Inc., manufactures tennis clothing. During the month, the company cut and assembled 8,000 skirts. One hundred of the skirts did not meet specifications and were considered ‘‘seconds.’’ Seconds...

Q: Scarlatta’s Manufacturing Company uses a job order cost system. The following

Scarlatta’s Manufacturing Company uses a job order cost system. The following accounts have been taken from the books of the company: Required: 1. Analyze the accounts and describe i...

Q: Yusane Bolts, Inc., produces 50,000 units each day

Yusane Bolts, Inc., produces 50,000 units each day, and the average number of units in work in process is 200,000. The average annual inventory carrying cost percentage is 25%, and the average work in...

Q: The following inventory data relate to Niagara Corp.: /

The following inventory data relate to Niagara Corp.: Calculate the following for the year: a. Direct materials purchased. b. Direct labor costs incurred. c. Cost of goods sold. d. Gross profit.

Q: The purchases and issues of rubber gaskets (Materials Ledger #11216

The purchases and issues of rubber gaskets (Materials Ledger #11216) as shown in the records of HD Corporation for the month of November follow: Required: 1. Complete a materials ledger account simil...

Q: Maintaining internal control over labor cost is necessary for a cost accounting

Maintaining internal control over labor cost is necessary for a cost accounting system to function effectively. What are the internal control procedures regarding the charge to the work in process acc...

Q: The general ledger of Stephens Products, Inc. contains the following

The general ledger of Stephens Products, Inc. contains the following control account: If the materials charged to the one uncompleted job still in process amounted to $3,400, what amount of labor and...

Q: The following form represents an account taken from the general ledger of

The following form represents an account taken from the general ledger of Brodsky Costumes Company: Answer the following questions: a. What is the title of the account? b. Is this a departmentalized f...

Q: Manufacturing Company is studying the results of applying factory overhead to production

Manufacturing Company is studying the results of applying factory overhead to production. The following data have been used: estimated factory overhead, $60,000; estimated materials costs, $50,000; es...

Q: Marblehead Manufacturing, Inc., has two departments, Mixing and Blending

Marblehead Manufacturing, Inc., has two departments, Mixing and Blending. When goods are completed in Mixing, they are transferred to Blending and then to the finished goods storeroom. There was no be...

Q: 1,000 units were started and finished. Case 1

1,000 units were started and finished. Case 1: All prices and quantities for the cost elements are standard, except for materials cost, which is $8.50 per pound. Case 2: All prices and quantities for...

Q: Cost and production data for Biloxi Beverages, Inc., are presented

Cost and production data for Biloxi Beverages, Inc., are presented as follows. Required: 1. Calculate net variances for materials, labor, and factory overhead. 2. a. Calculate specific materials and...

Q: The standard cost summary for the most popular product of Phase-

The standard cost summary for the most popular product of Phase-Five Products Company is shown as follows, together with production and cost data for the period. Standard Cost Summary Materials: 2 gal...

Q: Poway Shirts, Inc., manufactures men’s sport shirts for large stores

Poway Shirts, Inc., manufactures men’s sport shirts for large stores. Folsom produces a single quality shirt in lots of a dozen according to each customer’s order a...

Q: On December 1, Lake George Production Company had a work in

On December 1, Lake George Production Company had a work in process inventory of 1,200 units that were complete as to materials and 50% complete as to labor and overhead. December 1 costs follow: Mate...

Q: Lynne Products Company uses a process cost system and applies actual factory

Lynne Products Company uses a process cost system and applies actual factory overhead to work in process at the end of the month. The following data came from the records for the month of March: Direc...

Q: Using the information presented in E10-1 Prepare comparative income statements

Using the information presented in E10-1 Prepare comparative income statements for March (a) under absorption costing and (b) Under variable costing. Information presented in E10-1 Lynne Products Comp...

Q: Presented below are the monthly factory overhead cost budget (at normal

Presented below are the monthly factory overhead cost budget (at normal capacity of 5,000 units or 20,000 direct labor hours) and the production and cost data for a month. The predetermined overhead r...

Q: Cruise Tire Company’s budgeted unit sales for the year 2011 were:

Cruise Tire Company’s budgeted unit sales for the year 2011 were: Passenger car tires . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ....

Q: Budgeted selling and administrative expenses for Cruise Tire Company in P7-

Budgeted selling and administrative expenses for Cruise Tire Company in P7-2 for the year ended December 31, 2011, were as follows: Advertising expense . . . . . . . . . . . . . . . . . . . . . . . ....

Q: Prepare a cost of goods sold budget for the Summit Manufacturing Company

Prepare a cost of goods sold budget for the Summit Manufacturing Company for the year ended December 31, 2011, from the following estimates. Inventories of production units: Direct materials purchased...

Q: Swedish Navy Company manufactures wristwatches on an assembly line. The work

Swedish Navy Company manufactures wristwatches on an assembly line. The work in process inventory as of March 1 consisted of 1,000 watches that were complete as to materials and 75% complete as to lab...

Q: U.S. Grant Company has two production departments. Blending

U.S. Grant Company has two production departments. Blending had 1,000 units in process at the beginning of the period, two fifths complete. During the period 7,800 units were received from Mixing, 8,2...

Q: What would be the effect on the unit cost of finished goods

What would be the effect on the unit cost of finished goods if an estimate of the stage of completion of work in process was too high?

Q: Why is it necessary to estimate the stage or degree of completion

Why is it necessary to estimate the stage or degree of completion of work in process at the end of the accounting period under the process cost system?

Q: Spaulding Manufacturing Company has determined the cost of manufacturing a unit of

Spaulding Manufacturing Company has determined the cost of manufacturing a unit of product as follows, based on normal production of 100,000 units per year: Direct materials . . . . . . . . . . . . ....

Q: Using the data given for Cases 1–3 and the FIFO

Using the data given for Cases 1–3 and the FIFO cost method, compute the separate equivalent units of production, one for materials and one for labor and overhead, under each of the following assumpti...

Q: Analyze the information presented in the following general ledger account of Mantle

Analyze the information presented in the following general ledger account of Mantle Manufacturing Co., which has three departments: Shaping, Forming, and Finishing: Additional facts: a. 2,000 units w...

Q: Foamy, Inc., manufactures shaving cream and uses an average cost

Foamy, Inc., manufactures shaving cream and uses an average cost system. In November, production is 14,800 equivalent units for materials and 13,300 units for labor and overhead. During the month, mat...

Q: Data concerning a recent period’s activity in the Prep Department, the

Data concerning a recent period’s activity in the Prep Department, the fi rst processing department in a company that uses process costing, appear below: A total of 20,100 units wer...

Q: Lubricants, Inc., produces a special kind of grease that is

Lubricants, Inc., produces a special kind of grease that is widely used by race car drivers. The grease is produced in two processing departments: Refining and Blending. Raw materials are introduced a...

Q: Sunspot Beverages, Ltd., of Fiji makes blended tropical fruit drinks

Sunspot Beverages, Ltd., of Fiji makes blended tropical fruit drinks in two stages. Fruit juices are extracted from fresh fruits and then blended in the Blending Department. The blended juices are the...

Q: Builder Products, Inc., manufactures a caulking compound that goes through

Builder Products, Inc., manufactures a caulking compound that goes through three processing stages prior to completion. Information on work in the first department, Cooking, is given below for May: T...

Q: Weston Products manufactures an industrial cleaning compound that goes through three processing

Weston Products manufactures an industrial cleaning compound that goes through three processing departments—Grinding, Mixing, and Cooking. All raw materials are introduced at the sta...

Q: Amfac Company manufactures a single product. The company keeps careful records

Amfac Company manufactures a single product. The company keeps careful records of manufacturing activities from which the following information has been extracted: The company’s man...

Q: Hector P. Wastrel, a careless employee, left some combustible

Hector P. Wastrel, a careless employee, left some combustible materials near an open flame in Salter Company’s plant. The resulting explosion and fi re destroyed the entire plant and administrative of...

Q: The following cost and inventory data are taken from the accounting records

The following cost and inventory data are taken from the accounting records of Mason Company for the year just completed: Required: 1. Prepare a schedule of cost of goods manufactured. 2. Prepare the...

Q: The Devon Motor Company produces motorcycles. During April, the company

The Devon Motor Company produces motorcycles. During April, the company purchased 8,000 batteries at a cost of $10 per battery. Devon withdrew 7,600 batteries from the storeroom during the month. Of t...

Q: Various cost and sales data for Meriwell Company for the just completed

Various cost and sales data for Meriwell Company for the just completed year appear in the worksheet below: Of the $105,000 of manufacturing overhead, $15,000 is variable and $90,000 is fixed. Requir...

Q: M. K. Gallant is president of Kranbrack Corporation, a

M. K. Gallant is president of Kranbrack Corporation, a company whose stock is traded on a national exchange. In a meeting with investment analysts at the beginning of the year, Gallant had predicted t...

Q: Visic Corporation, a manufacturing company, produces a single product.

Visic Corporation, a manufacturing company, produces a single product. The following information has been taken from the company’s production, sales, and cost records for the just co...

Q: Supply the missing data in the following cases. Each case is

Supply the missing data in the following cases. Each case is independent of the others.

Q: Refer to the data for Provost Industries in Case 4–19

Refer to the data for Provost Industries in Case 4–19. Assume that the company uses the FIFO method in its process costing system. Required: 1. Prepare a report for the Finishing Department for April...

Q: Schroeder Baking Corporation uses a process costing system in its large-

Schroeder Baking Corporation uses a process costing system in its large-scale baking operations. The Mixing Department is one of the company’s processing departments. In the Mixing Department in July,...

Q: “I think we goofed when we hired that new assistant controller

“I think we goofed when we hired that new assistant controller,” said Ruth Scarpino, president of Provost Industries. “Just look at this report th...

Q: Gary Stevens and Mary James are production managers in the Consumer Electronics

Gary Stevens and Mary James are production managers in the Consumer Electronics Division of General Electronics Company, which has several dozen plants scattered in locations throughout the world. Mar...

Q: Maria Am Corporation uses a process costing system. The Baking Department

Maria Am Corporation uses a process costing system. The Baking Department is one of the processing departments in its strudel manufacturing facility. In June in the Baking Department, the cost of begi...

Q: Pureform, Inc., manufactures a product that passes through two departments

Pureform, Inc., manufactures a product that passes through two departments. Data for a recent month for the first department follow: The beginning work in process inventory was 80% complete with resp...

Q: Helix Corporation produces prefabricated flooring in a series of steps carried out

Helix Corporation produces prefabricated flooring in a series of steps carried out in production departments. All of the material that is used in the first production department is added at the beginn...

Q: Scribners Corporation produces fi ne papers in three production departments—Pulping

Scribners Corporation produces fi ne papers in three production departments—Pulping, Drying, and Finishing. In the Pulping Department, raw materials such as wood fiber and rag cotton...

Q: Data concerning a recent period’s activity in the Assembly Department, the

Data concerning a recent period’s activity in the Assembly Department, the first processing department in a company that uses process costing, appear below: A total of 26,000 units...

Q: Refer to the data for the Blending Department of Sunspots Beverages,

Refer to the data for the Blending Department of Sunspots Beverages, Ltd., in Problem 4–13. Assume that the company uses the FIFO method rather than the weighted-average method in its process costing...

Q: Selzik Company makes super-premium cake mixes that go through two

Selzik Company makes super-premium cake mixes that go through two processing departments, Blending and Packaging. The following activity was recorded in the Blending Department during July: All mater...

Q: You have recently accepted a position with Vitex, Inc., the

You have recently accepted a position with Vitex, Inc., the manufacturer of a popular consumer product. During your first week on the job, the vice president has been favorably impressed with your wor...

Q: Miller Toy Company manufactures a plastic swimming pool at its Westwood Plant

Miller Toy Company manufactures a plastic swimming pool at its Westwood Plant. The plant has been experiencing problems as shown by its June contribution format income statement below: Janet Dunn, wh...

Q: Why can undue emphasis on labor efficiency variances lead to excess work

Why can undue emphasis on labor efficiency variances lead to excess work in process inventories?

Q: Presented next are the ending balances of accounts for the Kansas Instruments

Presented next are the ending balances of accounts for the Kansas Instruments Corporation at December 31, 2018. Additional Information: 1. The note receivable, along with any accrued interest, is due...

Q: The following incomplete balance sheet for the Sanderson Manufacturing Company was prepared

The following incomplete balance sheet for the Sanderson Manufacturing Company was prepared by the company’s controller. As accounting manager for Sanderson, you are attempting to re...

Q: How many Work in Process accounts are maintained in a company that

How many Work in Process accounts are maintained in a company that uses process costing?

Q: Assume that a company has two processing departments—Mixing and Firing

Assume that a company has two processing departments—Mixing and Firing. Prepare a journal entry to show a transfer of work in process from the Mixing Department to the Firing Department

Q: Assume that a company has two processing departments—Mixing followed by

Assume that a company has two processing departments—Mixing followed by Firing. Explain what costs might be added to the Firing Department’s Work in Process account during a period.

Q: Match the type of inventory with the type of business in the

Match the type of inventory with the type of business in the following matrix:

Q: Van Goe produces paints. On January 1, it had no

Van Goe produces paints. On January 1, it had no work-in-process inventory. It starts production of 300,000 gallons of paint in January and completes 240,000 gallons. The costs of the resources used b...

Q: Opech, Inc., produces oil and ships it in a pipeline

Opech, Inc., produces oil and ships it in a pipeline. On May 1, it had no work-in-process inventory. It started production of 300 million barrels of oil in May and shipped 270 million barrels in the p...

Q: Oholics, Ltd., produces chocolate that it sells to candy makers

Oholics, Ltd., produces chocolate that it sells to candy makers. On April 1, it had no work-in-process inventory. It started production of 20,000 pounds of chocolate in April and completed production...

Q: Old Tyme Soda produces one flavor of a popular local soft drink

Old Tyme Soda produces one flavor of a popular local soft drink. It had no work in process on October 31 in its only inventory account. During November, Old Tyme started 10,000 barrels. Work in proces...

Q: Tappan, Inc., manufactures one product and accounts for costs using

Tappan, Inc., manufactures one product and accounts for costs using a job cost system. You have obtained the following information from the corporation’s books and records for the year ended December...

Q: Butte Components produces a variety of hardware products, primarily for the

Butte Components produces a variety of hardware products, primarily for the do-it-yourself (DIY) market. As part of your job interview as a summer intern at Butte, the cost accountant provides you wit...

Q: Toby Manufacturing produces three different products in the same plant and uses

Toby Manufacturing produces three different products in the same plant and uses a job order costing system to estimate product costs. A flexible budget is used to forecast overhead costs. Total budget...

Q: Alexander Products manufactures dental equipment and uses a standard cost system.

Alexander Products manufactures dental equipment and uses a standard cost system. A new product (HV65) that is being introduced requires a particular type of stainless steel. Alexander purchased a qua...

Q: The Easton plant produces sheet metal chassis for television sets. Its

The Easton plant produces sheet metal chassis for television sets. Its customer is General Electric Appliances. The chassis are manufactured on a computerized, numerically controlled (NC) machine that...

Q: Department 100 is the first step in the firm’s manufacturing process.

Department 100 is the first step in the firm’s manufacturing process. Data for the current quarter’s operations are as follows:...

Q: DeJure Scents manufactures an aftershave and uses process costing. All materials

DeJure Scents manufactures an aftershave and uses process costing. All materials are added at the beginning of the process and conversion costs are incurred uniformly over time. In May, DeJure started...

Q: Neweway Plastics manufactures an acrylic compound used in automobile bumpers in a

Neweway Plastics manufactures an acrylic compound used in automobile bumpers in a continuous flow process. Raw material is added at the beginning of the process and conversion costs are incurred unifo...

Q: Chemtrex is an agricultural chemical producer. Process costing is used in

Chemtrex is an agricultural chemical producer. Process costing is used in its mixing department. At the beginning of July, Chemtrex had 700,000 gallons 70 percent complete in work in process. During J...

Q: Simple Plant manufactures DNA test strips. Manufacturing overhead is applied to

Simple Plant manufactures DNA test strips. Manufacturing overhead is applied to units produced using direct labor dollars as the allocation base. The overhead rate is calculated prior to the beginning...

Q: The following figures were taken from the records of Wellington Co.

The following figures were taken from the records of Wellington Co. for the year 2008. At the end of the year, two jobs were still in process. Details about the two jobs include: Wellington Co. applie...

Q: Warren City, with sales of $2 billion, produces and

Warren City, with sales of $2 billion, produces and sells farm equipment. The manufacturing division produces some parts internally and purchases other parts from external suppliers and assembles farm...

Q: Why is it acceptable to close overallocated or underallocated manufacturing overhead to

Why is it acceptable to close overallocated or underallocated manufacturing overhead to Cost of Goods Sold rather than allocating it proportionately to Work in Process Inventory, Finished Goods Invent...

Q: When using the weighted-average method of process costing, total

When using the weighted-average method of process costing, total equivalent units produced for a given period equal: a. The number of units started and completed during the period plus the number of u...

Q: Missouri Corporation shows the following information concerning the work in process at

Missouri Corporation shows the following information concerning the work in process at its plant: • Beginning inventory was partially complete (materials are 100 percent complete; conversion costs are...

Q: Refer to the data in Exercise 8-18.

Refer to the data in Exercise 8-18. In Exercise 8-18. Missouri Corporation shows the following information concerning the work in process at its plant: • Beginning inventory was partially complete (m...

Q: The following information pertains to the Davenport plant for the month of

The following information pertains to the Davenport plant for the month of May (all materials are added at the beginning of the process): Required Compute the cost per equivalent unit for materials...

Q: Refer to the data in Exercise 8-22.

Refer to the data in Exercise 8-22. In Exercise 8-22. The following information pertains to the Davenport plant for the month of May (all materials are added at the beginning of the process): Requi...

Q: Materials are added at the beginning of the production process at Santiago

Materials are added at the beginning of the production process at Santiago Company, which uses a FIFO process costing system. The following information on the physical flow of units is available for t...

Q: Refer to the data in Exercise 8-24. Cost

Refer to the data in Exercise 8-24. Cost data for April show the following: Beginning WIP inventory Direct materials costs . . . . . . . . . . . . . . $ 24,300 Conversion costs . . . . . . . . . . ....

Q: Select the best answer for each of the following independent multiple-

Select the best answer for each of the following independent multiple-choice questions. a. Adams Company’s production cycle starts in Department A. The following information is avai...

Q: Miller Outdoor Equipment (MOE) makes four models of tents.

Miller Outdoor Equipment (MOE) makes four models of tents. The model names are Rookie, Novice, Hiker, and Expert. MOE manufactures the tents in two departments: Stitching and Customizing. All four mod...

Q: Vermont Company uses continuous processing to produce stuffed bears and FIFO process

Vermont Company uses continuous processing to produce stuffed bears and FIFO process costing to account for its production costs. It uses FIFO because costs are quite unstable due to the volatile pric...

Q: Bouwens Corporation manufactures a solvent used in airplane maintenance shops. Bouwens

Bouwens Corporation manufactures a solvent used in airplane maintenance shops. Bouwens sells the solvent to both U.S. military services and commercial airlines. The solvent is produced in a single pla...

Q: Selected data concerning the past year’s operations of the Lone Star Leather

Selected data concerning the past year’s operations of the Lone Star Leather Company are as follows: Required: 1. What was the cost of raw materials purchased during the year? 2. Wh...

Q: Biloxi Billiards Company uses normal costing, and manufacturing overhead is applied

Biloxi Billiards Company uses normal costing, and manufacturing overhead is applied to work in process on the basis of machine hours. On January 1 of the current year there were no balances in work-in...

Q: Birmingham Bowling Ball Company (BBBC) uses a job-order

Birmingham Bowling Ball Company (BBBC) uses a job-order costing system to accumulate manufacturing costs. The company’s work-in-process on December 31, 20x3, consisted of one job (no. 3088), which was...

Q: Marvelous Marshmallow Company’s cost of goods sold for January was $690

Marvelous Marshmallow Company’s cost of goods sold for January was $690,000. January 31 working process inventory was 90 percent of January 1 work-in-process inventory. Manufacturing overhead applied...

Q: Conundrum, Inc. manufactures puzzles. Due to a fire in

Conundrum, Inc. manufactures puzzles. Due to a fire in the administrative offices, the accounting records for September of the current year were partially destroyed. You have been able to piece togeth...

Q: The following data pertain to the Fantasia Flour Milling Company for the

The following data pertain to the Fantasia Flour Milling Company for the month of October. Work in process, October 1 (in units) ..................................... ? Units started during October .....

Q: The following data pertain to the Canandaigua Carpet Company for January.

The following data pertain to the Canandaigua Carpet Company for January. Work in process, January 1 (in units) ........................... 25,000 Units started during January ...........................

Q: (Based on a problem contributed by Roland Minch.) Celestial Glass

(Based on a problem contributed by Roland Minch.) Celestial Glass Company manufactures a variety of glass windows in its Charleston plant. In department I clear glass sheets are produced, and some of...

Q: Orbital Industries of Canada, Ltd. manufactures a variety of materials

Orbital Industries of Canada, Ltd. manufactures a variety of materials and equipment for the aerospace industry. A team of R&D engineers in the firm's Winnipeg plant has developed a new material t...

Q: A food processing company has two sequential production departments: mixing and

A food processing company has two sequential production departments: mixing and cooking. The cost of the January 1 work in process in the cooking department is detailed as follows: Direct material ......

Q: Opticom, Inc. a manufacturer of fiber optic communications equipment,

Opticom, Inc. a manufacturer of fiber optic communications equipment, uses a j ob-order costing system. Since the production process is heavily automated, manufacturing overhead is applied on the basi...

Q: The following selected information was extracted from the 20x1 accounting records of

The following selected information was extracted from the 20x1 accounting records of Surgical Products, Inc.: Raw-material-purchases .................................................. $350,000 Direct...

Q: Determine the missing amounts in each of the following independent cases.

Determine the missing amounts in each of the following independent cases.

Q: Scranton Refrigeration Corporation began operations at the beginning of the current year

Scranton Refrigeration Corporation began operations at the beginning of the current year. One of the company’s products, a compressor, sells for $370 per unit. Information related to the current year’...

Q: / A city included the schedule above in its financial statements

A city included the schedule above in its financial statements. 1. Prepare entries to reflect the activity relating to improvements and equipment in both the general-fund and the government-wide state...

Q: The Leblanc Company employs a job order costing system to account for

The Leblanc Company employs a job order costing system to account for its costs. The company has three production departments. Separate departmental cost driver rates are employed because the demand f...

Q: SMY Corporation produces 60,000 videophones per year. The company

SMY Corporation produces 60,000 videophones per year. The company estimates its direct material costs for the videophone to be $300 per unit and its conversion (direct labor plus support) costs to be...

Q: E. Cain, Ltd. produces decorative lamps in several styles

E. Cain, Ltd. produces decorative lamps in several styles and finishes. The company uses a job order costing system to accumulate product costs. Because much of the production process is automated, E....

Q: ErgoFurn, Inc. manufactures ergonomically designed computer furniture. ErgoFurn uses

ErgoFurn, Inc. manufactures ergonomically designed computer furniture. ErgoFurn uses a job order costing system. On November 30, the Work in Process Inventory consisted of the following jobs: On Nov...

Q: Refer to Problem 4-28. Reference from Problem

Refer to Problem 4-28. Reference from Problem 4-28: ErgoFurn, Inc. manufactures ergonomically designed computer furniture. ErgoFurn uses a job order costing system. On November 30, the Work in Proces...

Q: Maverick Wings, Inc. manufactures airplanes for use in stunt shows

Maverick Wings, Inc. manufactures airplanes for use in stunt shows. Maverick’s factory is highly automated, using the latest in robotic technology. To keep costs low, the company emp...

Q: Healthful Foods, Inc. a manufacturer of breakfast cereals and snack

Healthful Foods, Inc. a manufacturer of breakfast cereals and snack bars, has experienced several years of steady growth in sales, profits, and dividends while maintaining a relatively low level of de...

Q: Revisit Exercise 4-14 about Drew Corp. Reference

Revisit Exercise 4-14 about Drew Corp. Reference from Exercise 4-14: Drew Corp. designs and manufactures mascot uniforms for high school, college, and professional sports teams. Since each teamâ...

Q: The following T-accounts record the operations of Roddick Co.:

The following T-accounts record the operations of Roddick Co.: Required: a. Calculate the amount of direct materials purchased during the period. b. Calculate the direct materials used in productio...

Q: The following information is taken from the accounting records of four different

The following information is taken from the accounting records of four different companies. Provide the missing amounts. Assume there are no indirect materials used in the company’s...

Q: Drew Corp. designs and manufactures mascot uniforms for high school,

Drew Corp. designs and manufactures mascot uniforms for high school, college, and professional sports teams. Since each team’s uniform is unique in color and design, Drew uses a job...

Q: Jestus Church Furniture manufactures custom pews, altars, and pulpits for

Jestus Church Furniture manufactures custom pews, altars, and pulpits for churches across the southern United States. Since each order is unique, Jestus uses a job order costing system. During the mon...

Q: The following events occurred over the course of a year at Bagby

The following events occurred over the course of a year at Bagby Corp., which uses a job order costing system: 1. Direct materials purchases totaled $460,000. 2. $230,000 of indirect materials were us...

Q: Kim-Brooks, Inc. makes costumes for movies and television

Kim-Brooks, Inc. makes costumes for movies and television shows. Brooks Kimberly, the company’s owner, prepared the following estimates for the upcoming year: Manufacturing overhead cost………………..$800,...

Q: Of all the times this hard drive could crash, it had

Of all the times this hard drive could crash, it had to be now,” Marcy cried. “How can I finish the June financial reports without all the information? I knew I should have backed up the disk last nig...

Q: Oberti Guitar Company makes high-quality customized guitars. Oberti uses

Oberti Guitar Company makes high-quality customized guitars. Oberti uses a job order costing system. Because the guitars are handmade, the company applies overhead based on direct labor hours. At the...

Q: Paladin Parabolics Company produces high-quality microscopes for education and health

Paladin Parabolics Company produces high-quality microscopes for education and health care uses. The company uses a job order costing system. Because the microscopes’ optics require...

Q: Refer to the data in the preceding exercise. Use diagrams similar

Refer to the data in the preceding exercise. Use diagrams similar to those in Exhibits 11–6 and 11–8 to compute (1) the variable-overhead spending and efficiency va...

Q: Manitoba Paper Company packages paper for photocopiers. The company has developed

Manitoba Paper Company packages paper for photocopiers. The company has developed standard overhead rates based on a monthly practical capacity of 90,000 direct-labor hours as follows: Standard costs...

Q: Western A uto Parts Company manufactures replacement parts for automobile repair.

Western A uto Parts Company manufactures replacement parts for automobile repair. The company recently installed a flexible manufacturing system (FMS), which has significantly changed the production p...

Q: Draw a flowchart similar to the one in Exhibit 9–1

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Metro Fashions, Inc., manufactures women’s blouses of one quality, which are produced in lots to fill each special order. Its customers are department stores in various cities. Metro...

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MacGyver Corporation manufactures a product called Miracle Goo, which comes in handy for just about anything. The thick tarry substance is sold in six-gallon drums. Two raw materials are used; these a...

Q: Custom Granite, Inc., uses an absorption cost system for accumulating

Custom Granite, Inc., uses an absorption cost system for accumulating product cost. The following data are available for the past year: • Raw materials purchases totaled $480,000. &a...

Q: York Co. uses a standard cost system. When raw materials

York Co. uses a standard cost system. When raw materials are purchased, the standard cost of the raw materials purchased is recorded as an increase in the Raw Materials Inventory account. When raw mat...

Q: Silverstone’s production budget for March called for making 200,000 units

Silverstone’s production budget for March called for making 200,000 units of a single product. The firm’s production standards allow one-quarter of a machine hour per unit produced. The fixed overhead...

Q: Lamp Art Co. makes specialty table lamps. Manufacturing overhead is

Lamp Art Co. makes specialty table lamps. Manufacturing overhead is applied to production on a direct labor hour’s basis. During November, the first month of the company’s fiscal year, $173,250 of man...

Q: Slaps hot Company makes ice hockey sticks. During the month of

Slaps hot Company makes ice hockey sticks. During the month of June, the company purchased $132,000 of materials. Also during the month of June, Slaps hot Company incurred direct labor cost of $113,00...

Q: In March, Chilton Company purchased materials costing $25,000

In March, Chilton Company purchased materials costing $25,000 and incurred direct labor cost of $10,000. Overhead totaled $42,000 for the month. Information on inventories was as follows: Required:...

Q: Jasper Company provided the following information for last year:

Jasper Company provided the following information for last year: Sales in units ………………………………………………. 280,000 Selling price ………………………………………………………. $ 12 Direct materials …………………………………………… 180,000 Direct...

Q: Gateway Construction Company, run by Jack Gateway, employs 25 to

Gateway Construction Company, run by Jack Gateway, employs 25 to 30 people as subcontractors for laying gas, water, and sewage pipelines. Most of Gateway’s work comes from contracts...

Q: Jasper Company provided the following information for last year:

Jasper Company provided the following information for last year: Sales in units ………………………………………………. 280,000 Selling price ………………………………………………………. $ 12 Direct materials …………………………………………… 180,000 Direct...

Q: Match the type of inventory with the type of business in the

Match the type of inventory with the type of business in the following matrix:

Q: The balance in beginning Work in Process at Bing Rubber Company for

The balance in beginning Work in Process at Bing Rubber Company for direct labor was $140,000. During the month of March, an additional $800,000 of direct labor was incurred, and 35,000 pounds of rubb...

Q: Simply Shine Shampoo is manufactured in two departments: Mixing and Packing

Simply Shine Shampoo is manufactured in two departments: Mixing and Packing. Once the shampoo mixture is completed in the Mixing Department, it is sent to Packaging, where a machine fills and seals in...

Q: The Carnival Caramel Company makes a high-quality caramel candy.

The Carnival Caramel Company makes a high-quality caramel candy. The manufacturing process involves mixing ingredients (Mixing Department) and shaping the processed mixture into 1-pound balls (Shaping...

Q: The Kioda Corporation assembles various components used in the electronics industry.

The Kioda Corporation assembles various components used in the electronics industry. The company’s major product, a computer chip, is the result of assembling three parts: X1, Y2, and Z3. The followin...

Q: Sassy Cotton produces fine cotton fabrics. The cotton is processed and

Sassy Cotton produces fine cotton fabrics. The cotton is processed and finished before being shipped out to clothing companies. Material is added in the beginning of processing, and conversion costs a...

Q: Lindy Manufacturing uses a process costing system to track the production of

Lindy Manufacturing uses a process costing system to track the production of the single product it makes in one department. At the start of November, there were 8,000 units in process that were 100 pe...

Q: The Newberry Company accumulates costs for its product using a process costing

The Newberry Company accumulates costs for its product using a process costing system. Direct materials are added at the beginning of the production process, and conversion occurs evenly throughout th...

Q: Marquita Filters produces an air filter for use in jet aircraft.

Marquita Filters produces an air filter for use in jet aircraft. Parts are added at several points in the production process. In August, production began with 600 filters in Work in Process, 80 percen...

Q: Kao Tiles is a specialized producer of ceramic tiles. Its production

Kao Tiles is a specialized producer of ceramic tiles. Its production process involves highly skilled workers and top-quality ceramic crafters. Work in Process is relatively large because each tile is...

Q: Aussie Yarn is a U.S. producer of woolen yarn

Aussie Yarn is a U.S. producer of woolen yarn made from wool imported from Australia. Raw wool is processed, spun, and finished before being shipped out to knitting and weaving companies. Material is...

Q: Place Y (yes) beside the general ledger accounts related to

Place Y (yes) beside the general ledger accounts related to inventory in a job-order cost system and N (no) by those that are not. a. Raw Materials Inventory b. Administrative Expense c. Work in Pr...

Q: Terra Cotta Designs manufactures custom tiles. The following information relates to

Terra Cotta Designs manufactures custom tiles. The following information relates to the fiscal year ending December 31, 2017: Beginning balance in Raw Material Inventory……………………$ 450,000 Purchases of...

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Renton Custom Windows produces custom windows for business and residential customers who supply Renton with architectural specifications. At the start of 2017, three jobs were in process: Cost incurr...

Q: Fill in the missing information: / /

Fill in the missing information:

Q: The Western Beverage Company is marketing a new product, Tech-

The Western Beverage Company is marketing a new product, Tech-Tonic Sports Drink Syrup. The product sells for $16 per gallon, and in recent months the company has had sales of more than 525,000 gallon...

Q: At the start of July, the Classic Car Wax Company had

At the start of July, the Classic Car Wax Company had beginning Work in Process of 2,500 units that were 90 percent complete with respect to material and 45 percent complete with respect to conversion...

Q: At the start of November, Penco Refinery had Work in Process

At the start of November, Penco Refinery had Work in Process inventory consisting of 4,000 units that were 90 percent complete with respect to materials and 50 percent complete with respect to convers...

Q: The McMillian Tire Company produces tires used on small trailers. The

The McMillian Tire Company produces tires used on small trailers. The month of June ended with 600 tires in process, 90 percent complete as to direct materials, and 50 percent complete as to conversio...

Q: For the month of September, the Wilber Pickle Company had cost

For the month of September, the Wilber Pickle Company had cost per equivalent unit of $0.80 for materials (pickles, vinegar, spices, etc.) and $.90 for conversion costs (labor and overhead). At Wilber...

Q: Magi-Clean Vacuum produces a single product, a vacuum cleaner

Magi-Clean Vacuum produces a single product, a vacuum cleaner, in a continuous production process. At the beginning of production, 85 percent of materials are added; the other 15 percent are added imm...

Q: The following information is available for the first month of operations of

The following information is available for the first month of operations of Bahadir Company, a manufacturer of mechanical pencils: Sales……………………………………………………..$792,000 Gross profit…………………………………………….46...

Q: The budget director of Gold Medal Athletic Co., with the assistance

The budget director of Gold Medal Athletic Co., with the assistance of the controller, treasurer, production manager, and sales manager, has gathered the following data for use in developing the budge...

Q: Greeson Clothes Company produced 25,000 units during June of the

Greeson Clothes Company produced 25,000 units during June of the current year. The Cutting Department used 6,380 direct labor hours at an actual rate of $10.90 per hour. The Sewing Department used 9,8...

Q: Prepare a cost of goods sold budget for Daybook Inc. using

Prepare a cost of goods sold budget for Daybook Inc. using the information in Practice Exercises 22-3A and 22-4A. Assume the estimated inventories on January 1, 20Y6, for finished goods and work in pr...

Q: From the choices presented in parentheses, choose the appropriate term for

From the choices presented in parentheses, choose the appropriate term for completing each of the following sentences: a. Advertising costs are usually viewed as (period, product) costs. b. Feedback i...

Q: Partial balance sheet data for Diesel Additives Company at August 31

Partial balance sheet data for Diesel Additives Company at August 31 are as follows: Prepare the Current assets section of Diesel Additives Company’s balance sheet at August 31.

Q: The budget director of Birds of a Feather Inc., with the

The budget director of Birds of a Feather Inc., with the assistance of the controller, treasurer, production manager, and sales manager, has gathered the following data for use in developing the budge...

Q: Two items are omitted from each of the following three lists of

Two items are omitted from each of the following three lists of cost of goods manufactured statement data. Determine the amounts of the missing items, identifying them by letter

Q: Fire Rock Company manufactures designer paddle boards in a wide variety of

Fire Rock Company manufactures designer paddle boards in a wide variety of sizes and styles. The following incomplete ledger accounts refer to transactions that are summarized for June: In addition,...

Q: Several items are omitted from the income statement and cost of goods

Several items are omitted from the income statement and cost of goods manufactured statement data for two different companies for the month of December. Instructions 1. Determine the amo...

Q: Ginocera Inc. is a designer, manufacturer, and distributor of

Ginocera Inc. is a designer, manufacturer, and distributor of low ­ cost, high ­ quality stainless steel kitchen knives. A new kitchen knife series called the Kitchen Ninja was released for production...

Q: Tybee Industries Inc. uses a job order cost system. The

Tybee Industries Inc. uses a job order cost system. The following data summarize the operations related to production for January, the first month of operations: a. Materials purchased on account, $2...

Q: The following information is available for Shanika Company for 20Y6:

The following information is available for Shanika Company for 20Y6: Instructions 1. Prepare the statement of cost of goods manufactured. 2. Prepare the income statement

Q: The controller of MingWare Ceramics Inc. wants to prepare a cost

The controller of MingWare Ceramics Inc. wants to prepare a cost of goods sold budget for September. The controller assembled the following information for constructing the cost of goods sold budget:...

Q: The following events took place for Digital Vibe Manufacturing Company during January

The following events took place for Digital Vibe Manufacturing Company during January, the first month of its operations as a producer of digital video monitors: a. Purchased $168,500 of materials. b...

Q: Cost data for Disksan Manufacturing Company for the month ended January 31

Cost data for Disksan Manufacturing Company for the month ended January 31 are as follows a. Prepare a cost of goods manufactured statement for January. b. Determine the cost of goods sold for January...

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The following is a list of costs incurred by several businesses: a. Cost of fabric used by clothing manufacturer b. Maintenance and repair costs for factory equipment c. Rent for a warehouse used...

Q: Several items are omitted from the income statement and cost of goods

Several items are omitted from the income statement and cost of goods manufactured statement data for two different companies for the month of May. Instructions 1. Determine the amounts of the missi...

Q: The following information is available for Robstown Corporation for 20Y8:

The following information is available for Robstown Corporation for 20Y8: Instructions 1. Prepare the statement of cost of goods manufactured. 2. Prepare the income statement.

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Jackson Sound produces amplifiers and mixing boards in a modern production facility. The company is well known for its quality products. Each item is thoroughly tested before it leaves the plant. Work...

Q: Refer to the summary of variances in Exercise 11-16.

Refer to the summary of variances in Exercise 11-16. At Bell Computers, the ending balance in Finished Goods Inventory is $117,000; the ending balance in Work in Process Inventory is $54,000, and the...

Q: Under Stanford Corporation’s job costing system, manufacturing overhead is applied to

Under Stanford Corporation’s job costing system, manufacturing overhead is applied to work in process using a predetermined annual overhead rate. During November, Year 1, Stanford’s transactions inclu...

Q: Atlanta Office Equipment manufactures and sells metal shelving. It began operations

Atlanta Office Equipment manufactures and sells metal shelving. It began operations on January 1, 2017. Costs incurred for 2017 are as follows (V stands for variable; F stands for fixed): Direct mater...

Q: Solar Electronics has enjoyed tremendous sales growth during the last 10 years

Solar Electronics has enjoyed tremendous sales growth during the last 10 years. However, even though sales have steadily increased, the company’s CEO, Dana Byrnes, is concerned about...

Q: Suppose the following information is from the 2017 annual report of American

Suppose the following information is from the 2017 annual report of American Greetings Corporation (all dollars in thousands). The notes to the company’s financial statements also i...

Q: Jagjit Company designs and builds retaining walls for individual customers. On

Jagjit Company designs and builds retaining walls for individual customers. On August 1, there were two jobs in process: Job 93 with a beginning balance of $8,750, and Job 94 with a beginning balance...

Q: Gorman Company builds internal conveyor equipment to client specifications. On October

Gorman Company builds internal conveyor equipment to client specifications. On October 1, Job 877 was in process with a cost of $18,640 to date. During October, Jobs 878, 879, and 880 were started....

Q: Derry Company uses job-order costing. At the end of

Derry Company uses job-order costing. At the end of the month, the following information was gathered: The beginning balance of Finished Goods was $300, consisting of Job 300 which was not sold by t...

Q: Ensign Landscape Design designs landscape plans and plants the material for clients

Ensign Landscape Design designs landscape plans and plants the material for clients. On April 1, there were three jobs in process, Jobs 39, 40, and 41. During April, two more jobs were started, Jobs 4...

Q: Heurion Company is a job-order costing firm that uses a

Heurion Company is a job-order costing firm that uses a plant wide overhead rate based on direct labor hours. Estimated information for the year is as follows: Overhead …â&#...

Q: Pavlovich Prosthetics Company produces artificial limbs for individuals. Each prosthetic is

Pavlovich Prosthetics Company produces artificial limbs for individuals. Each prosthetic is unique. On January 1, three jobs, identified by the name of the person being fitted with the prosthetic, wer...

Q: Barrymore Costume Company, located in New York City, sews costumes

Barrymore Costume Company, located in New York City, sews costumes for plays and musicals. Barrymore considers itself primarily a service firm, as it never produces costumes without a preexisting orde...

Q: To record the transfer of costs from a prior process to a

To record the transfer of costs from a prior process to a subsequent process, the following entry would be made: a. debit Finished Goods and credit Work in Process. b. debit Work in Process (subseque...

Q: At the beginning of June, Rhone Company had two jobs in

At the beginning of June, Rhone Company had two jobs in process, Job 44 and Job 45, with the following accumulated cost information: During June, two more jobs (46 and 47) were started. The followin...

Q: Consider the following conversation between Gary Means, manager of a division

Consider the following conversation between Gary Means, manager of a division that produces industrial machinery, and his controller, Donna Simpson, a certified management accountant and certified pub...

Q: When a job costing $2,000 is finished but not

When a job costing $2,000 is finished but not sold, the following journal entry is made:

Q: Describe how the following occurrences should be accounted for based on the

Describe how the following occurrences should be accounted for based on the fact pattern presented: a. Certain amounts of spoilage and waste are normal in the production system and affect all jobs. b....

Q: Nottaway Flooring produces custom-made floor tiles. The company’s Raw

Nottaway Flooring produces custom-made floor tiles. The company’s Raw Material Inventory account contains both direct and indirect materials. Until the end of April 2010, the company worked solely on...

Q: Croftmark Co. began operations on May 1, 2010. Its

Croftmark Co. began operations on May 1, 2010. Its Work in Process Inventory account on May 31 appeared as follows: The company applies overhead on the basis of direct labor cost. Only one job was sti...

Q: The following costs were incurred in February 2010 by Container Corp.,

The following costs were incurred in February 2010 by Container Corp., which produces customized steel storage bins: The balance in Work in Process Inventory on February 1 was $16,800, which consisted...

Q: Blaine Corp. makes floats for Mardi Gras in New Orleans.

Blaine Corp. makes floats for Mardi Gras in New Orleans. The company’s fiscal year ends on March 31. On January 1, 2010, the company’s WIP Inventory account appeare...

Q: On September 25, 2010, a hurricane destroyed the work in

On September 25, 2010, a hurricane destroyed the work in process inventory of Biloxi Corporation. At that time, the company was in the process of manufacturing two custom jobs (B325 and Q428). Althoug...

Q: You have applied for a cost accounting position with Chelsea Containers.

You have applied for a cost accounting position with Chelsea Containers. The company controller has asked all candidates to take a quiz to demonstrate their knowledge of job order costing. Chelsea&aci...

Q: Edward Nabors owns Enclose, which designs and manufactures perimeter fencing for

Edward Nabors owns Enclose, which designs and manufactures perimeter fencing for large retail and commercial buildings. Each job goes through three stages: design, production, and installation. Three...

Q: Pip Squeaks Inc. is a manufacturer of furnishings for infants and

Pip Squeaks Inc. is a manufacturer of furnishings for infants and children. The company uses a job order cost system. Pip Squeaks’ Work in Process Inventory on April 30, 2010, consis...

Q: Polaski Inc. uses an actual cost, job order system.

Polaski Inc. uses an actual cost, job order system. The following transactions are for August 2010. At the beginning of the month, Direct Material Inventory was $2,000, Work in Process Inventory was $...

Q: Ialani Corp. uses a job order costing system for the yachts

Ialani Corp. uses a job order costing system for the yachts it constructs. On September 1, 2010, the company had the following account balances: Raw Material Inventory …………………………………$ 332,400 Work in P...

Q: Production data for the first week in November 2010 for Florida Fabricators

Production data for the first week in November 2010 for Florida Fabricators were as follows: Finished Goods Inventory, Nov. 1: $23,800 Finished Goods Inventory, Nov. 5: $0 Direct labor hours worked in...

Q: During August 2010, Berman Company’s Department Y equivalent unit product costs

During August 2010, Berman Company’s Department Y equivalent unit product costs, computed under the weighted average method, were as follows: Material …………………………$2 Conversion ………………………6 Transferred in...

Q: Lamb Inc. produces calendars in a two-process, two

Lamb Inc. produces calendars in a two-process, two-department operation. In the Printing Department, calendars are printed and cut. In the Assembly Department, the material received from Printing is a...

Q: Use the information in Exercise 36 and assume that Lamb Inc.

Use the information in Exercise 36 and assume that Lamb Inc. uses the FIFO method of process costing. For the Assembly Department, compute the following: a. equivalent units of production for each cos...

Q: Ynugai Corp. uses a process costing system to assign costs to

Ynugai Corp. uses a process costing system to assign costs to its steel production. During March 2010, Ynugai had beginning Work in Process Inventory of 180,000 tons of steel (100 percent complete as...

Q: Be-at-Ease Industries manufactures a series of three models

Be-at-Ease Industries manufactures a series of three models of molded plastic chairs: standard (without arms), deluxe (with arms), and executive (with arms and padding). All are variations of the same...

Q: Gary’s Tools manufactures one of its products in a two-department

Gary’s Tools manufactures one of its products in a two-department process. A separate Work in Process Inventory account is maintained for each department, and the company uses a weig...

Q: Strongarm manufactures various lines of bicycles. Because of the high volume

Strongarm manufactures various lines of bicycles. Because of the high volume of each type of product, the company employs a process cost system using the weighted average method to determine unit cost...

Q: Ro-Day-O Inc. manufactures belt buckles in a

Ro-Day-O Inc. manufactures belt buckles in a single-step production process. The following information is available for June 2010: Beginning inventory units were 100 percent complete as to material an...

Q: Spangenberg Products manufactures computer cases. All material is added at the

Spangenberg Products manufactures computer cases. All material is added at the start of production and overhead is applied to each product at the rate of 70 percent of direct labor cost. At the beginn...

Q: Delacroix Co. had 800 units of inventory at the beginning of

Delacroix Co. had 800 units of inventory at the beginning of March 2010. Other information about that beginning Work in Process Inventory is as follows: Direct labor costs were extremely high during F...

Q: Use the Fresh Seasons information from Problem 4, except assume that

Use the Fresh Seasons information from Problem 4, except assume that the company uses a FIFO process costing system. Information form Problem 4: Delacroix Co. had 800 units of inventory at the beginn...

Q: Use the information from Problem 4 for Delacroix Co. a

Use the information from Problem 4 for Delacroix Co. a. Prepare a cost of production report for March using the FIFO method. b. In general, what differences exist between the WA and FIFO methods of pr...

Q: How do the weighted average and first-in, first-

How do the weighted average and first-in, first-out methods of process costing differ in their treatment of beginning Work in Process Inventory units?

Q: At year-end 2010, the trial balance of Pennopscott Corp

At year-end 2010, the trial balance of Pennopscott Corp. showed the following accounts and amounts: Assume that, taken together, the variances are believed to be significant. Prepare the journal entri...

Q: Since opening in 2009, Akron Aviation has built light aircraft engines

Since opening in 2009, Akron Aviation has built light aircraft engines and has gained a reputation for reliable and quality products. Factory overhead is applied to production using direct labor hours...

Q: Tomm’s T’s is a New York–based company that produces and

Tomm’s T’s is a New York–based company that produces and sells t-shirts. The firm uses variable costing for internal purposes and absorption costi...

Q: Gap’O has projected sales of 325,000 hospital gowns in October

Gap’O has projected sales of 325,000 hospital gowns in October. Each gown requires 2.5 yards of fabric. The beginning inventory of fabric and gowns, respectively, are 5,000 yards and 21,000 gowns. Gap...

Q: Kalogridis Corp. manufactures industrial dye. The company is preparing its

Kalogridis Corp. manufactures industrial dye. The company is preparing its 2011 master budget and has presented you with the following information: a. The projected December 31, 2010, balance sheet fo...

Q: Caleb Corp. has prepared the following unit sales forecast for 2011

Caleb Corp. has prepared the following unit sales forecast for 2011: Estimated ending Finished Goods Inventories are 50,000 units at December 31, 2010; 72,000 units at June 30, 2011; and 120,000 units...

Q: Shredder Manufacturing has the following projected unit sales (at $18

Shredder Manufacturing has the following projected unit sales (at $18 per unit) for four months of operations: January ……………………………………………25,000 February ………………………………………….30,000 March ………………………………………………...

Q: For 2010, Omaha Mechanical has a monthly overhead cost formula of

For 2010, Omaha Mechanical has a monthly overhead cost formula of $42,900+$6 per direct labor hour. The firm’s 2010 expected annual capacity is 78,000 direct labor hours, to be incurred evenly each mo...

Q: At the end of 2010, Jackson Tank Company’s accounts showed a

At the end of 2010, Jackson Tank Company’s accounts showed a $66,000 credit balance in Manufacturing Overhead Control. In addition, the company had the following account balances: Work in Process Inve...

Q: Davidson’s Dolls had the following information in its Work in Process Inventory

Davidson’s Dolls had the following information in its Work in Process Inventory account for June 2010: All workers are paid the same rate per hour. Factory overhead is applied to Wor...

Q: At year-end 2010, Dub’s Wind Generator Co. had

At year-end 2010, Dub’s Wind Generator Co. had a $40,000 debit balance in its Manufacturing Overhead Control account. Overhead is applied to products based on direct labor cost. Rele...

Q: Pete’s Plant Stands manufactures wooden stands used by plant nurseries. In

Pete’s Plant Stands manufactures wooden stands used by plant nurseries. In May 2010, the company manufactured 18,000 and sold 16,560 stands. The cost per unit for the 18,000 stands produced was as fol...

Q: Data concerning a recent period’s activity in the Assembly Department, the

Data concerning a recent period’s activity in the Assembly Department, the first processing department in a company that uses process costing, appear below: A total of 26,000 units...

Q: Refer to the data for Pureform, Inc., in Exercise 4

Refer to the data for Pureform, Inc., in Exercise 4–8. In Exercise 4–8 Pureform, Inc., manufactures a product that passes through two departments. Data for a recen...

Q: Refer to the data for the Blending Department of Sunspot Beverages,

Refer to the data for the Blending Department of Sunspot Beverages, Ltd., in Problem 4–13A. Assume that the company uses the FIFO method rather than the weighted-average method in it...

Q: Selzik Company makes super-premium cake mixes that go through two

Selzik Company makes super-premium cake mixes that go through two processing departments, Blending and Packaging. The following activity was recorded in the Blending Department during July: Production...

Q: Lompac Products manufactures a variety of products in its factory. Data

Lompac Products manufactures a variety of products in its factory. Data for the most recent month’s operations appear below: Beginning raw materials inventory ............... $60,000 Purchases of raw...

Q: Lompac Products manufactures a variety of products in its factory. Data

Lompac Products manufactures a variety of products in its factory. Data for the most recent month’s operations appear below: Beginning raw materials inventory ................ $60,000 Purchases of raw...

Q: Following are a number of cost terms introduced in the chapter:

Following are a number of cost terms introduced in the chapter: Variable cost Fixed cost Prime cost Opportunity cost Product cost Sunk cost Conversion cost Period cost Required: Choose the term or t...

Q: The following cost and inventory data are taken from the accounting records

The following cost and inventory data are taken from the accounting records of Mason Company for the year just completed: Costs incurred: Direct labor cost ........................................ $70...

Q: The Devon Motor Company produces motorcycles. During April, the company

The Devon Motor Company produces motorcycles. During April, the company purchased 8,000 batteries at a cost of $10 per battery. Devon withdrew 7,600 batteries from the storeroom during the month. Of t...

Q: Swift Company was organized on March 1 of the current year.

Swift Company was organized on March 1 of the current year. After five months of start-up losses, management had expected to earn a profit during August. Management was disappointed, however, when the...

Q: Various cost and sales data for Meriwell Company for the just completed

Various cost and sales data for Meriwell Company for the just completed year appear in the worksheet below: Of the $105,000 of manufacturing overhead, $15,000 is variable and $90,000 is fixed. Requ...

Q: Supply the missing data in the following cases. Each case is

Supply the missing data in the following cases. Each case is independent of the others.

Q: Estimated cost and operating data for three companies for the upcoming year

Estimated cost and operating data for three companies for the upcoming year follow: Predetermined overhead rates are computed using the following allocation bases in the three companies: ___________...

Q: The following information is taken from the accounts of Latta Company.

The following information is taken from the accounts of Latta Company. The entries in the T-accounts are summaries of the transactions that affected those accounts during the year The overhead that...

Q: Harwood Company uses a job-order costing system. Overhead costs

Harwood Company uses a job-order costing system. Overhead costs are applied to jobs on the basis of machine-hours. At the beginning of the year, management estimated that the company would incur $192,...

Q: The Polaris Company uses a job-order costing system. The

The Polaris Company uses a job-order costing system. The following data relate to October, the first month of the company’s fiscal year. a. Raw materials purchased on account, $210,000. b. Raw materia...

Q: Leeds Architectural Consultants began operations on January 2. The following activity

Leeds Architectural Consultants began operations on January 2. The following activity was recorded in the company’s Work in Process account for the first month of operations: Leeds...

Q: Dillon Products manufactures various machined parts to customer specifications. The company

Dillon Products manufactures various machined parts to customer specifications. The company uses a job-order costing system and applies overhead cost to jobs on the basis of machine-hours. At the begi...

Q: Vista Landscaping uses a job-order costing system to track the

Vista Landscaping uses a job-order costing system to track the costs of its landscaping projects. The company provides garden design and installation services for its clients. The table below provides...

Q: Gitano Products operates a job-order costing system and applies overhead

Gitano Products operates a job-order costing system and applies overhead cost to jobs on the basis of direct materials used in production (not on the basis of raw materials purchased). All materials a...

Q: Selected T-accounts of Moore Company are given below for the

Selected T-accounts of Moore Company are given below for the just completed year: Required: 1. What was the cost of raw materials put into production during the year? 2. How much of the materials in...

Q: Primare Corporation has provided the following data concerning last month’s manufacturing operations

Primare Corporation has provided the following data concerning last month’s manufacturing operations. Required: 1. Prepare a schedule of cost of goods manufactured for the month. 2...

Q: Munoz Corporation uses activity-based costing to determine product costs for

Munoz Corporation uses activity-based costing to determine product costs for external financial reports. At the beginning of the year, management made the following estimates of cost and activity in t...

Q: Hunter Corporation uses activity-based costing to determine product costs for

Hunter Corporation uses activity-based costing to determine product costs for external financial reports. At the beginning of the year, management made the following estimates of cost and activity in...

Q: Pearl Products Limited of Shenzhen, China, manufactures and distributes toys

Pearl Products Limited of Shenzhen, China, manufactures and distributes toys throughout South East Asia. Three cubic centimeters (cc) of solvent H300 are required to manufacture each unit of Supermix,...

Q: Visic Corporation, a manufacturing company, produces a single product.

Visic Corporation, a manufacturing company, produces a single product. The following information has been taken from the company’s production, sales, and cost records for the just co...

Q: Refer to the data for Provost Industries in Analytical Thinking in Chapter

Refer to the data for Provost Industries in Analytical Thinking in Chapter 4. Assume that the company uses the FIFO method in its process costing system. In Analytical Thinking in Chapter 4 “I think...

Q: M. K. Gallant is president of Kranbrack Corporation, a

M. K. Gallant is president of Kranbrack Corporation, a company whose stock is traded on a national exchange. In a meeting with investment analysts at the beginning of the year, Gallant had predicted t...

Q: Hector P. Wastrel, a careless employee, left some combustible

Hector P. Wastrel, a careless employee, left some combustible materials near an open flame in Salter Company’s plant. The resulting explosion and fire destroyed the entire plant and administrative off...

Q: After a dispute concerning wages, Orville Arson tossed an incendiary device

After a dispute concerning wages, Orville Arson tossed an incendiary device into the Sparkle Company’s record vault. Within moments, only a few charred fragments were readable from t...

Q: “I think we goofed when we hired that new assistant controller

“I think we goofed when we hired that new assistant controller,” said Ruth Scarpino, president of Provost Industries. “Just look at this report that he prepared for last month for the Finishing Depart...

Q: Gary Stevens and Mary James are production managers in the Consumer Electronics

Gary Stevens and Mary James are production managers in the Consumer Electronics Division of General Electronics Company, which has several dozen plants scattered in locations throughout the world. Mar...

Q: How many Work in Process accounts are maintained in a company that

How many Work in Process accounts are maintained in a company that uses process costing

Q: Assume that a company has two processing departments—Mixing and Firing

Assume that a company has two processing departments—Mixing and Firing. Prepare a journal entry to show a transfer of work in process from the Mixing Department to the Firing Department.

Q: Assume that a company has two processing departments—Mixing followed by

Assume that a company has two processing departments—Mixing followed by Firing. Explain what costs might be added to the Firing Department’s Work in Process account during a period.

Q: Why can undue emphasis on labor efficiency variances lead to excess work

Why can undue emphasis on labor efficiency variances lead to excess work in process inventories?

Q: The standard cost card for the single product manufactured by Cutter,

The standard cost card for the single product manufactured by Cutter, Inc., is given below: Standard Cost Card—per Unit Direct materials, 3 yards at $6.00 per yard ....................

Q: Genola Fashions began production of a new product on June 1.

Genola Fashions began production of a new product on June 1. The company uses a standard cost system and has established the following standards for one unit of the new product: During June, the fol...

Q: Miller Toy Company manufactures a plastic swimming pool at its Westwood Plant

Miller Toy Company manufactures a plastic swimming pool at its Westwood Plant. The plant has been experiencing problems as shown by its June contribution format income statement below: Janet Dunn, w...

Q: Data concerning a recent period’s activity in the Prep Department, the

Data concerning a recent period’s activity in the Prep Department, the first processing department in a company that uses process costing, appear below: A total of 20,100 units wer...

Q: Maria Am Corporation uses a process costing system. The Baking Department

Maria Am Corporation uses a process costing system. The Baking Department is one of the processing departments in its strudel manufacturing facility. In June in the Baking Department, the cost of begi...

Q: Pureform, Inc., manufactures a product that passes through two departments

Pureform, Inc., manufactures a product that passes through two departments. Data for a recent month for the first department follow: The beginning work in process inventory was 80% complete with res...

Q: Helix Corporation produces prefabricated flooring in a series of steps carried out

Helix Corporation produces prefabricated flooring in a series of steps carried out in production departments. All of the material that is used in the first production department is added at the beginn...

Q: Scribners Corporation produces fine papers in three production departments—Pulping,

Scribners Corporation produces fine papers in three production departments—Pulping, Drying, and Finishing. In the Pulping Department, raw materials such as wood fiber and rag cotton...

Q: Sunspot Beverages, Ltd., of Fiji makes blended tropical fruit drinks

Sunspot Beverages, Ltd., of Fiji makes blended tropical fruit drinks in two stages. Fruit juices are extracted from fresh fruits and then blended in the Blending Department. The blended juices are the...

Q: Builder Products, Inc., manufactures a caulking compound that goes through

Builder Products, Inc., manufactures a caulking compound that goes through three processing stages prior to completion. Information on work in the first department, Cooking, for May follows: Productio...

Q: Old Country Links Inc. produces sausages in three production departments—

Old Country Links Inc. produces sausages in three production departments—Mixing, Casing and Curing, and Packaging. In the Mixing Department, meats are prepared and ground and then mi...

Q: Weston Products manufactures an industrial cleaning compound that goes through three processing

Weston Products manufactures an industrial cleaning compound that goes through three processing departments—Grinding, Mixing, and Cooking. All raw materials are introduced at the sta...

Q: Lubricants, Inc., produces a special kind of grease that is

Lubricants, Inc., produces a special kind of grease that is widely used by race car drivers. The grease is produced in two processing departments: Refining and Blending. Raw materials are introduced a...

Q: Amfac Company manufactures a single product. The company keeps careful records

Amfac Company manufactures a single product. The company keeps careful records of manufacturing activities from which the following information has been extracted: The company’s ma...

Q: Presented below are selected accounts of Aramis Company at December 31,

Presented below are selected accounts of Aramis Company at December 31, 2012. The following additional information is available. 1. Inventories are valued at lower-of-cost-or-market using LIFO. 2. E...

Q: Below are the titles of a number of debit and credit accounts

Below are the titles of a number of debit and credit accounts as they might appear on the balance sheet of Hayduke Corporation as of October 31, 2012. Instructions Select the current asset and curre...

Q: Dimitri Company, a manufacturer of small tools, provided the following

Dimitri Company, a manufacturer of small tools, provided the following information from its accounting records for the year ended December 31, 2012. Inventory at December 31, 2012 (based on physical...

Q: Prab Robots, Inc., reported the following information regarding 2011–

Prab Robots, Inc., reported the following information regarding 2011–2012 inventory. Notes to Consolidated Financial Statements Note 1 (in part): Nature of Business and Significant...

Q: Skulas, Inc., manufactures and sells snowboards. Skulas manufactures a

Skulas, Inc., manufactures and sells snowboards. Skulas manufactures a single model, the Pipex. In late 2017, Skulas’s management accountant gathered the following data to prepare bu...

Q: Refer to the information in Problem 6-42. Budgeted balances

Refer to the information in Problem 6-42. Budgeted balances at January 31, 2018 are as follows: Cash…………â€&br...

Q: Assuming beginning work in process is zero, the equivalent units of

Assuming beginning work in process is zero, the equivalent units of production computed using FIFO versus weighted average will have the following relationship: 1. FIFO equivalent units will be greate...

Q: Visual Company produces gadgets for the coveted small appliance market. The

Visual Company produces gadgets for the coveted small appliance market. The following data reflect activity for the year 2017: Costs Incurred Purchases of direct materials (net) on creditâ€...

Q: The Ride-On-Wave Company (ROW) produces a

The Ride-On-Wave Company (ROW) produces a line of non-motorized boats. ROW uses a normal-costing system and allocates manufacturing overhead using direct manufacturing labor cost. The following data a...

Q: Estevez Company uses normal costing in its job-costing system.

Estevez Company uses normal costing in its job-costing system. The company produces kitchen cabinets. The beginning balances (December 1) and ending balances (as of December 30) in their inventory acc...

Q: Resource Room prints custom training material for corporations. The business was

Resource Room prints custom training material for corporations. The business was started January 1, 2017. The company uses a normal-costing system. It has two direct-cost pools, materials and labor, a...

Q: Prior to 2012, Heberling Inc. excluded manufacturing overhead costs from

Prior to 2012, Heberling Inc. excluded manufacturing overhead costs from work in process and finished goods inventory. These costs have been expensed as incurred. In 2012, the company decided to chang...

Q: Natural Beauty Corp. uses a joint process to make two main

Natural Beauty Corp. uses a joint process to make two main products: Forever perfume and Fantasy lotion. Production is organized in two sequential departments: Combining and Heating. The products do n...

Q: Powisett Farms Dairy began operations at the start of May 2010.

Powisett Farms Dairy began operations at the start of May 2010. Powisett Farms operates a fleet of trucks to gather whole milk from local farmers. The whole milk is then separated into two joint produ...

Q: Refer to the information in Problem 4. a. Calculate

Refer to the information in Problem 4. a. Calculate the sales price per gallon for skim milk and cream. b. Using relative sales value, allocate the joint cost to the joint production. c. Calculate end...

Q: The following information is available for Chemco Inc’s inventories as of June

The following information is available for Chemco Inc’s inventories as of June 30, 2015: We used the LIFO method of valuing our inventories for approximately 40% and 44% of total...

Q: Supply the missing information on the following schedule of cost of goods

Supply the missing information on the following schedule of cost of goods manufactured:

Q: Antioch Company makes eBook readers. The company had the following amounts

Antioch Company makes eBook readers. The company had the following amounts at the beginning of 2018: Cash, $660,000; Raw Materials Inventory, $51,000; Work in Process Inventory, $18,000; Finished Good...

Q: Randomly select annual reports for 10 publicly traded manufacturing companies. On

Randomly select annual reports for 10 publicly traded manufacturing companies. On the balance sheet, or in the related footnotes, for each firm, find the amounts for the three inventory accounts: raw...

Q: Cosmo Industries recorded the following transactions for its first month of operations

Cosmo Industries recorded the following transactions for its first month of operations: Because Cosmo employs JIT, the company’s CEO has asked how the accounting system could be sim...

Q: Wisconsin Wire (WW) has implemented a just-in-

Wisconsin Wire (WW) has implemented a just-in-time inventory system for the production of its insulated wire. Inventories of raw material and work in process are so small that WW uses a Raw and In-Pro...

Q: Koss Corp. makes high-quality headphones for a variety of

Koss Corp. makes high-quality headphones for a variety of applications. Koss is a Milwaukee-based company but has significant manufacturing operations in China. When manufacturing operations were move...

Q: FB Badpoore Aerospace makes carbon brake discs for large airplanes with a

FB Badpoore Aerospace makes carbon brake discs for large airplanes with a proprietary “cross weave” of the carbon fibers. The brake discs are 4 feet in diameter but...

Q: Assume that a company has two processing departments—Mixing followed by

Assume that a company has two processing departments—Mixing followed by Firing. Explain what costs might be added to the Firing Department’s Work in Process account during a period.

Q: Star Videos, Inc., produces short musical videos for sale to

Star Videos, Inc., produces short musical videos for sale to retail outlets. The company’s balance sheet accounts as of January 1 are given below. Because the videos differ in lengt...

Q: Brooks Corporation uses a job-order costing system to apply manufacturing

Brooks Corporation uses a job-order costing system to apply manufacturing costs to jobs. The company closes its underapplied or overapplied overhead to cost of goods sold. Its balance sheet on March 1...

Q: Refer to the data for Alaskan Fisheries, Inc., in Exercise

Refer to the data for Alaskan Fisheries, Inc., in Exercise 4–10. Exercise 4–10: Alaskan Fisheries, Inc., processes salmon for various distributors and it uses the...

Q: Refer to the data for Pureform, Inc., in Exercise 4

Refer to the data for Pureform, Inc., in Exercise 4–9. Exercise 4–9: Pureform, Inc., uses the weighted-average method in its process costing system. It manufacture...

Q: The Excel worksheet form that appears below is to be used to

The Excel worksheet form that appears below is to be used to recreate part of the example relating to Turbo Crafters that appears earlier in the chapter. Download the workbook containing this form Yo...

Q: This exercise relates to the Double Diamond Skis’ Shaping and Milling Department

This exercise relates to the Double Diamond Skis’ Shaping and Milling Department that was discussed earlier in the chapter.The Excel worksheet form that appears below consolidates da...

Q: Cheryl Montoya picked up the phone and called her boss, Wes

Cheryl Montoya picked up the phone and called her boss, Wes Chan, the vice president of marketing at Piedmont Fasteners Corporation: “Wes, I’m not sure how to go ab...

Q: Refer to the data given in Exercise 1–7. Answer

Refer to the data given in Exercise 1–7. Answer all questions independently. Data from Exercise 1-7: The Devon Motor Company produces automobiles. On April 1st the company had no beginning inventorie...

Q: The Devon Motor Company produces automobiles. On April 1st the company

The Devon Motor Company produces automobiles. On April 1st the company had no beginning inventories and it purchased 8,000 batteries at a cost of $80 per battery. It withdrew 7,600 batteries from the...

Q: The following data from the just completed year are taken from the

The following data from the just completed year are taken from the accounting records of Mason Company Required: 1. Prepare a schedule of cost of goods manufactured. Assume all raw materials used in...

Q: Harwood Company uses a job-order costing system that applies overhead

Harwood Company uses a job-order costing system that applies overhead cost to jobs on the basis of machine-hours. The company’s predetermined overhead rate of $2.40 per machine-hour...

Q: Maria Am Corporation uses the weighted-average method in its process

Maria Am Corporation uses the weighted-average method in its process costing system. The Baking Department is one of the processing departments in its strudel manufacturing facility. In June in the Ba...

Q: Helix Corporation uses the weighted-average method in its process costing

Helix Corporation uses the weighted-average method in its process costing system. It produces prefabricated flooring in a series of steps carried out in production departments. All of the material tha...

Q: Pureform, Inc., uses the weighted-average method in its

Pureform, Inc., uses the weighted-average method in its process costing system. It manufactures a product that passes through two departments. Data for a recent month for the first department follow:...

Q: Question: Superior Company provided the following data for the year ended

Superior Company provided the following data for the year ended December 31 (all raw materials are used in production as direct materials): Selling expenses ..............................................

Q: Old Country Links, Inc., produces sausages in three production departments

Old Country Links, Inc., produces sausages in three production departments—Mixing, Casing and Curing, and Packaging. In the Mixing Department, meats are prepared and ground and then...

Q: Question: Sunspot Beverages, Ltd., of Fiji uses the weighted

Sunspot Beverages, Ltd., of Fiji uses the weighted-average method in its process costing system. It makes blended tropical fruit drinks in two stages. Fruit juices are extracted from fresh fruits and...

Q: Builder Products, Inc., uses the weighted-average method in

Builder Products, Inc., uses the weighted-average method in its process costing system. It manufactures a caulking compound that goes through three processing stages prior to completion. Information o...

Q: Bunnell Corporation is a manufacturer that uses job-order costing.

Bunnell Corporation is a manufacturer that uses job-order costing. On January 1, the company’s inventory balances were as follows: Raw materials.......................$40,000 Work in process............

Q: Clopack Company manufactures one product that goes through one processing department called

Clopack Company manufactures one product that goes through one processing department called Mixing. All raw materials are introduced at the start of work in the Mixing Department. The company uses the...

Q: Suppose that Hoffman Company uses the FIFO method instead of the weighted

Suppose that Hoffman Company uses the FIFO method instead of the weighted-average method in all of its departments. The only changes to Problem 17-39 under the FIFO method are that total transferred-i...

Q: Required: 1. Complete Problem 17-41 using the

Required: 1. Complete Problem 17-41 using the FIFO method of process costing. 2. If you did Problem 17-41, explain any difference between the cost of work completed and transferred out and the cost o...

Q: Spelling Sports, which produces basketballs, has two departments: cutting

Spelling Sports, which produces basketballs, has two departments: cutting and stitching. Each department has one direct-cost category (direct materials) and one indirect-cost category (conversion cost...

Q: Suppose that Spelling Sports uses the FIFO method instead of the weighted

Suppose that Spelling Sports uses the FIFO method instead of the weighted-average method. Assume that all other information, including the cost of beginning WIP, is unchanged. From problem 43: Spell...

Q: Amanda McNall is the corporate controller of Scott Quarry. Scott Quarry

Amanda McNall is the corporate controller of Scott Quarry. Scott Quarry operates 12 rock-crushing plants in Scott County, Kentucky, that process huge chunks of limestone rock extracted from undergroun...

Q: Refer to the information in Problem 18-35.

Refer to the information in Problem 18-35. Required: Do Problem 18-35 using the FIFO method of process costing. (Problem 18-38 explores additional facets of this problem.) From problem 35: World Cla...

Q: In the shipping department of World Class Steaks, conversion costs are

In the shipping department of World Class Steaks, conversion costs are added evenly during the process, and direct materials are added at the end of the process. Spoiled units are detected upon inspec...

Q: Refer to the information in Problem 18-37 except that the

Refer to the information in Problem 18-37 except that the transferred-in costs of beginning work in process on May 1 are $66,180 (instead of $67,397). Transferred-in costs for May equal the total cost...

Q: SunEnergy produces solar panels. A key step in the conversion of

SunEnergy produces solar panels. A key step in the conversion of raw silicon to a completed solar panel occurs in the assembly department, where lightweight photovoltaic cells are assembled into modul...

Q: Refer to requirement 2 of Exercise 17-21. Prepare summary

Refer to requirement 2 of Exercise 17-21. Prepare summary journal entries for the use of direct materials and incurrence of conversion costs. Also prepare a journal entry to transfer out the cost of g...

Q: Dot and Ken Ice Cream uses a mixing department and a freezing

Dot and Ken Ice Cream uses a mixing department and a freezing department in producing its ice cream. Its process-costing system in the mixing department has two direct materials cost categories (ice c...

Q: The assembly division of Quality Time Pieces, Inc. uses the

The assembly division of Quality Time Pieces, Inc. uses the weighted-average method of process costing. Consider the following data for the month of May 2017: Required: Compute equivalent units for d...

Q: Required: For the data in Exercise 17-24,

Required: For the data in Exercise 17-24, summarize the total costs to account for, calculate the cost per equivalent unit for direct materials and conversion costs, and assign costs to the units comp...

Q: Suppose the assembly division at Quality Time Pieces, Inc. uses

Suppose the assembly division at Quality Time Pieces, Inc. uses the FIFO method of process costing instead of the weighted average method. From exercise 24: The assembly division of Quality Time Pie...

Q: Required: For the data in Exercise 17-24,

Required: For the data in Exercise 17-24, use the FIFO method to summarize the total costs to account for, calculate the cost per equivalent unit for direct materials and conversion costs, and assign...

Q: Trendy Clothing, Inc. is a manufacturer of winter clothes.

Trendy Clothing, Inc. is a manufacturer of winter clothes. It has a knitting department and a finishing department. This exercise focuses on the finishing department. Direct materials are added at the...

Q: Suppose that Trendy uses the FIFO method instead of the weighted-

Suppose that Trendy uses the FIFO method instead of the weighted-average method in all of its departments. The only changes to Exercise 17-31 under the FIFO method are that total transferred-in costs...

Q: Lawrence Company is a manufacturer of contemporary door handles. The

Lawrence Company is a manufacturer of contemporary door handles. The vice president of Design attends home shows twice a year so the company can keep current with home trends. Because of its volume,...

Q: LaCroix Company produces handbags from leather of moderate quality. It distributes

LaCroix Company produces handbags from leather of moderate quality. It distributes the product through outlet stores and department store chains. At LaCroix’s facility in northeast O...

Q: Required: 1. Do Exercise 18-25 using the

Required: 1. Do Exercise 18-25 using the FIFO method. 2. What are the managerial issues involved in selecting or reviewing the percentage of spoilage considered normal? How would your answer to requi...

Q: LogicCo is a fast-growing manufacturer of computer chips. Direct

LogicCo is a fast-growing manufacturer of computer chips. Direct materials are added at the start of the production process. Conversion costs are added evenly during the process. Some units of this pr...

Q: Refer to the information in Exercise 18-29.

Refer to the information in Exercise 18-29. Required: 1. Do Exercise 18-29 using the FIFO method of process costing. 2. Should LogicCo’s managers choose the weighted-average method...

Q: Suppose LogicCo determines standard costs of $215 per equivalent unit for

Suppose LogicCo determines standard costs of $215 per equivalent unit for direct materials and $92 per equivalent unit for conversion costs for both beginning work in process and work done in the cu...

Q: Qualcomm Incorporated (QCOM) is a leading developer and manufacturer of

Qualcomm Incorporated (QCOM) is a leading developer and manufacturer of digital wireless telecommunications products and services. Qualcomm reported the following inventories (in millions) in the note...

Q: (a) What are the three cost elements entering into work

(a) What are the three cost elements entering into work in process and finished goods? (b) What items enter into manufacturing overhead?

Q: An incomplete subsidiary ledger of wire cable for July is as follows

An incomplete subsidiary ledger of wire cable for July is as follows: a. Complete the materials issuances and balances for the wire cable subsidiary ledger. Assume a first-in, first-out cost flow. b...

Q: Materials issued for the current month are as follows:

Materials issued for the current month are as follows: a. Determine the amount of materials transferred to Work in Process and Factory Overhead for the current month. b. Illustrate the effect on the...

Q: Big Timber Furniture Company manufactures furniture. Big Timber Furniture uses a

Big Timber Furniture Company manufactures furniture. Big Timber Furniture uses a job order cost system. Balances on June 1 from the materials ledger are as follows: The materials purchased during Ju...

Q: The weekly time tickets indicate the following distribution of labor hours for

The weekly time tickets indicate the following distribution of labor hours for three direct labor employees: The direct labor rate earned by the three employees is as follows: Leavitt â€&...

Q: Chamlee Industries Inc. manufactures recreational vehicles. Chamlee Industries uses a

Chamlee Industries Inc. manufactures recreational vehicles. Chamlee Industries uses a job order cost system. The time tickets from May jobs are summarized below. Job 5-100 ………………………………. $6,400 Job 5-1...

Q: The following events took place for Bridger Bikes Inc. during July

The following events took place for Bridger Bikes Inc. during July 20Y6, the first month of operations, as a producer of road bikes: ▪ Purchased $340,000 of materials. ▪ Used $329,000 of direct materia...

Q: The controller of Pueblo Ceramics Inc. wishes to prepare a cost

The controller of Pueblo Ceramics Inc. wishes to prepare a cost of goods sold budget for April. The controller assembled the following information for constructing the cost of goods sold budget: U...

Q: Summer Boards Company manufactures surf boards in a wide variety of sizes

Summer Boards Company manufactures surf boards in a wide variety of sizes and styles. The following incomplete ledger accounts refer to transactions that are summarized for May: In addition, the fo...

Q: The budget director of Jupiter Helmets Inc., with the assistance of

The budget director of Jupiter Helmets Inc., with the assistance of the controller, treasurer, production manager, and sales manager, has gathered the following data for use in developing the budgeted...

Q: Describe the source of the data for increasing Work in Process for

Describe the source of the data for increasing Work in Process for (a) direct materials, (b) direct labor, and (c) factory overhead.

Q: Five selected transactions for the current month are indicated by letters in

Five selected transactions for the current month are indicated by letters in the following accounts in a job order cost accounting system: Describe each of the five transactions.

Q: A summary of the time tickets for January is as follows:

A summary of the time tickets for January is as follows: a. Determine the amounts of factory labor costs transferred to Work in Process and Factory Overhead for January. b. Illustrate the effect on...

Q: Suppose the following information is from the 2014 annual report of American

Suppose the following information is from the 2014 annual report of American Greetings Corporation (all dollars in thousands). The notes to the company’s financial statements also...

Q: Heineken Electronics has enjoyed tremendous sales growth during the last 10 years

Heineken Electronics has enjoyed tremendous sales growth during the last 10 years. However, even though sales have steadily increased, the company’s CEO, Beth Dains, is concerned abo...

Q: Phoenix Company manufactures only one product and uses a standard cost system

Phoenix Company manufactures only one product and uses a standard cost system. The company uses a plantwide predetermined overhead rate that relies on direct labor-hours as the allocation base The pre...

Q: Bowen Company manufactures one product, it does not maintain any beginning

Bowen Company manufactures one product, it does not maintain any beginning or ending inventories, and its uses a standard cost system. Its predetermined overhead rate includes $1,000,000 of fixed over...

Q: Vitex, Inc. manufactures a popular consumer product and it has

Vitex, Inc. manufactures a popular consumer product and it has provided the following data excerpts from its standard cost system: The company’s manufacturing overhead cost is appli...

Q: Vitex, Inc. manufactures a popular consumer product and it has

Vitex, Inc. manufactures a popular consumer product and it has provided the following data excerpts from its standard cost system: The company’s manufacturing overhead cost is appli...

Q: Vitex, Inc. manufactures a popular consumer product and it has

Vitex, Inc. manufactures a popular consumer product and it has provided the following data excerpts from its standard cost system: The company’s manufacturing overhead cost is appli...

Q: Hartwell Company manufactures one product, it does not maintain any beginning

Hartwell Company manufactures one product, it does not maintain any beginning or ending inventories, and its uses a standard cost system. Its predetermined overhead rate includes $1,760,000 of fixed m...

Q: Wallis Company manufactures only one product and uses a standard cost system

Wallis Company manufactures only one product and uses a standard cost system.The company uses a predetermined plantwide overhead rate that relies on direct labor-hours as the allocation base. All of t...

Q: Miller Toy Company manufactures a plastic swimming pool at its Westwood Plant

Miller Toy Company manufactures a plastic swimming pool at its Westwood Plant. The plant has been experiencing problems as shown by its June contribution format income statement below: Janet Dunn, wh...

Q: The purpose of this team activity is to ensure that each team

The purpose of this team activity is to ensure that each team member understands process operations and the related accounting entries. Find the activities and flows identified in Exhibit 20.14 with n...

Q: Refer to Exercise 23-13. Hart Company records standard costs

Refer to Exercise 23-13. Hart Company records standard costs in its accounts and its materials variances in separate accounts when it assigns materials costs to the Work in Process Inventory account....

Q: The following information is available for Fishel Company. /

The following information is available for Fishel Company. Materials purchased in April $ 98,000 Direct labor in April 80,000 Manufacturing overhead in April 180,000 Prepare the cost of goods manufa...

Q: Refer to P14-5A and add the following requirement.

Refer to P14-5A and add the following requirement. Prepare a letter to the president of the company, Shelly Phillips, describing the changes you made. Explain clearly why net income is different afte...

Q: Incomplete manufacturing costs, expenses, and selling data for two different

Incomplete manufacturing costs, expenses, and selling data for two different cases are as follows. Instructions: (a) Indicate the missing amount for each letter. (b) Prepare a condensed cost of good...

Q: The following data were taken from the records of Clarkson Company for

The following data were taken from the records of Clarkson Company for the fiscal year ended June 30, 2014. Instructions: (a) Prepare a cost of goods manufactured schedule. (Assume all raw materials...

Q: Phillips Company is a manufacturer of computers. Its controller resigned in

Phillips Company is a manufacturer of computers. Its controller resigned in October 2014. An inexperienced assistant accountant has prepared the following income statement for the month of October 201...

Q: Incomplete manufacturing costs, expenses, and selling data for two different

Incomplete manufacturing costs, expenses, and selling data for two different cases are as follows. Instructions: (a) Indicate the missing amount for each letter. (b) Prepare a condensed cost of good...

Q: The following data were taken from the records of Moxie Company for

The following data were taken from the records of Moxie Company for the year ended December 31, 2014. Instructions: (a) Prepare a cost of goods manufactured schedule. (Assume all raw materials used...

Q: Ortiz Company is a manufacturer of toys. Its controller resigned in

Ortiz Company is a manufacturer of toys. Its controller resigned in August 2014. An inexperienced assistant accountant has prepared the following income statement for the month of August 2014. Prior...

Q: Use the same data from BE14–10 above and the data

Use the same data from BE14–10 above and the data below. Determine the missing amounts. Data from BE 14:

Q: Wendall Company specializes in producing fashion outfits. On July 31,

Wendall Company specializes in producing fashion outfits. On July 31, 2014, a tornado touched down at its factory and general office. The inventories in the warehouse and the factory were completely d...

Q: Chambers Company produces blankets. From its accounting records, it prepares

Chambers Company produces blankets. From its accounting records, it prepares the following schedule and financial statements on a yearly basis. (a) Cost of goods manufactured schedule. (b) Income stat...

Q: The determination of the cost of goods manufactured involves the following factors

The determination of the cost of goods manufactured involves the following factors: (A) beginning work in process inventory, (B) total manufacturing costs, and (C) ending work in process inventory....

Q: Manufacturing cost data for Copa Company are presented below.

Manufacturing cost data for Copa Company are presented below. Instructions: Indicate the missing amount for each letter (a) through (i).

Q: Joyce Tombert, the bookkeeper for Marks Consulting, a political consulting

Joyce Tombert, the bookkeeper for Marks Consulting, a political consulting firm, has recently completed a managerial accounting course at her local college. One of the topics covered in the course was...

Q: The following information is available for Aikman Company /

The following information is available for Aikman Company Instructions: (a) Compute cost of goods manufactured. (b) Prepare an income statement through gross profit. (c) Show the presentation of the...

Q: An analysis of the accounts of Roberts Company reveals the following manufacturing

An analysis of the accounts of Roberts Company reveals the following manufacturing cost data for the month ended June 30, 2014. Costs incurred: raw materials purchases $54,000, direct labor $47,000,...

Q: An incomplete cost of goods manufactured schedule is presented below.

An incomplete cost of goods manufactured schedule is presented below. Instructions: Complete the cost of goods manufactured schedule for Molina Company.

Q: Francum Company has the following data: direct labor $209,

Francum Company has the following data: direct labor $209,000, direct materials used $180,000, total manufacturing overhead $208,000, and beginning work in process $25,000. Compute (a) total manufactu...

Q: Tate Inc. has beginning work in process $26,000

Tate Inc. has beginning work in process $26,000, direct materials used $240,000, direct labor $220,000, total manufacturing overhead $180,000, and ending work in process $32,000. What are the total ma...

Q: Using the data in Question 17, what are (a

Using the data in Question 17, what are (a) the total cost of work in process and (b) the cost of goods manufactured?

Q: Compute ending work in process inventory for a manufacturer with the following

Compute ending work in process inventory for a manufacturer with the following information.

Q: Compute cost of goods sold for 2015 using the following information.

Compute cost of goods sold for 2015 using the following information.

Q: Refer to the information in QS 19-11. During the

Refer to the information in QS 19-11. During the month, the jobs used direct labor as shown below. Jobs 1 and 3 are not finished by the end of March, and Job 2 is finished but not sold by the end of M...

Q: The Carlberg Company has two manufacturing departments, assembly and painting.

The Carlberg Company has two manufacturing departments, assembly and painting. The assembly department started 10,000 units during November. The following production activity unit and cost information...

Q: Refer to the information in QS 20-10. Calculate the

Refer to the information in QS 20-10. Calculate the assembly department’s cost per equivalent unit of production for materials and for conversion for November. Use the FIFO method....

Q: Refer to the information in QS 20-10. Assign costs

Refer to the information in QS 20-10. Assign costs to the assembly department’s output—specifically, the units transferred out to the painting department and the un...

Q: Refer to the information in QS 20-10. Calculate the

Refer to the information in QS 20-10. Calculate the assembly department’s cost per equivalent unit of production for materials and for conversion for November. Use the weighted-avera...

Q: The Plastic Flowerpots Company has two manufacturing departments, molding and packaging

The Plastic Flowerpots Company has two manufacturing departments, molding and packaging. At the beginning of the month, the molding department has 2,000 units in inventory, 70% complete as to material...

Q: Refer to information in QS 20-18. Using the weighted

Refer to information in QS 20-18. Using the weighted-average method, assign direct materials costs to the molding department’s output—specifically, the units transf...

Q: Azule Co. manufactures in two sequential processes, cutting and binding

Azule Co. manufactures in two sequential processes, cutting and binding. The two departments report the information below for a recent month. Determine the ending balances in the Work in Process Inven...

Q: BOGO Inc. has two sequential processing departments, roasting and mixing

BOGO Inc. has two sequential processing departments, roasting and mixing. At the beginning of the month, the roasting department has 2,000 units in inventory, 70% complete as to materials. During the...

Q: Refer to QS 20-21. Using the FIFO method,

Refer to QS 20-21. Using the FIFO method, assign direct materials costs to the roasting department’s output—specifically, the units transferred out to the mixing de...

Q: Refer to the information in QS 20-10. Assign costs

Refer to the information in QS 20-10. Assign costs to the assembly department’s output—specifically, the units transferred out to the painting department and the un...

Q: Refer to the information in QS 20-10. Calculate the

Refer to the information in QS 20-10. Calculate the assembly department’s equivalent units of production for materials and for conversion for November. Use the FIFO method. Informat...

Q: The following refers to units processed in Sunflower Printing’s binding department in

The following refers to units processed in Sunflower Printing’s binding department in March. Prepare a physical flow reconciliation.

Q: Refer to QS 20-4. Compute the total equivalent units

Refer to QS 20-4. Compute the total equivalent units of production with respect to conversion for March using the FIFO inventory method. Data from QS 20-4: The following refers to units processed in...

Q: The following refers to units processed by an ice cream maker in

The following refers to units processed by an ice cream maker in July. Compute the total equivalent units of production with respect to conversion for July using the weighted-average inventory method....

Q: Refer to QS 20-8 and compute the total equivalent units

Refer to QS 20-8 and compute the total equivalent units of production with respect to conversion for July using the FIFO inventory method. Data from QS 20-8: The following refers to units processed...

Q: Refer to the information in QS 20-10. Prepare the

Refer to the information in QS 20-10. Prepare the November 30 journal entry to record the transfer of units (and costs) from the assembly department to the painting department. Use the weighted-averag...

Q: Refer to the information in QS 20-10. Prepare the

Refer to the information in QS 20-10. Prepare the November 30 journal entry to record the transfer of units (and costs) from the assembly department to the painting department. Use the FIFO method. I...

Q: In a job order costing system, what records serve as a

In a job order costing system, what records serve as a subsidiary ledger for Work in Process Inventory? For Finished Goods Inventory?

Q: Refer to QS 20-4. Compute the total equivalent units

Refer to QS 20-4. Compute the total equivalent units of production with respect to conversion for March using the weighted-average inventory method. Data from QS 20-4: The following refers to units...

Q: Use the following information to compute the cost of direct materials used

Use the following information to compute the cost of direct materials used for the current year.

Q: Refer to the information in QS 23-16. Alvarez records

Refer to the information in QS 23-16. Alvarez records standard costs in its accounts. Prepare the journal entry to charge overhead costs to the Work in Process Inventory account and to record any vari...

Q: Marcelino Co.’s March 31 inventory of raw materials is $

Marcelino Co.’s March 31 inventory of raw materials is $80,000. Raw materials purchase in April are $500,000, and factory payroll cost in April is $363,000. Overhead costs incurred i...

Q: Bergamo Bay’s computer system generated the following trial balance on December 31

Bergamo Bay’s computer system generated the following trial balance on December 31, 2015. The company’s manager knows something is wrong with the trial balance beca...

Q: Widmer Watercraft’s predetermined overhead rate for 2015 is 200% of direct

Widmer Watercraft’s predetermined overhead rate for 2015 is 200% of direct labor. Information on the company’s production activities during May 2015 follows. a. Pur...

Q: Sager Company manufactures variations of its product, a technopress, in

Sager Company manufactures variations of its product, a technopress, in response to custom orders from its customers. On May 1, the company had no inventories of work in process or finished goods but...

Q: Sierra Company manufactures woven blankets and accounts for product costs using process

Sierra Company manufactures woven blankets and accounts for product costs using process costing. The company uses a single processing department. The following information is available regarding its M...

Q: Victory Company uses weighted-average process costing to account for its

Victory Company uses weighted-average process costing to account for its production costs. Conversion cost is added evenly throughout the process. Direct materials are added at the beginning of the pr...

Q: Fast Co. produces its product through a single processing department.

Fast Co. produces its product through a single processing department. Direct materials are added at the start of production, and conversion costs are added evenly throughout the process. The company u...

Q: Tamar Co. manufactures a single product in one department. All

Tamar Co. manufactures a single product in one department. All direct materials are added at the beginning of the manufacturing process. Conversion costs are added evenly throughout the process. Durin...

Q: Refer to the data in Problem 20-4A. Assume that

Refer to the data in Problem 20-4A. Assume that Tamar uses the FIFO method to account for its process costing system. The following additional information is available: * Beginning work in process con...

Q: During May, the production department of a process manufacturing system completed

During May, the production department of a process manufacturing system completed a number of units of a product and transferred them to finished goods. Of these transferred units, 37,500 were in proc...

Q: Dengo Co. makes a trail mix in two departments: roasting

Dengo Co. makes a trail mix in two departments: roasting and blending. Direct materials are added at the beginning of each process, and conversion costs are added evenly throughout each process. The c...

Q: Perez Mfg.’s August 31 inventory of raw materials is $

Perez Mfg.’s August 31 inventory of raw materials is $150,000. Raw materials purchase in September are $400,000, and factory payroll cost in September is $232,000. Overhead costs inc...

Q: Cavallo Mfg.’s computer system generated the following trial balance on

Cavallo Mfg.’s computer system generated the following trial balance on December 31, 2015. The company’s manager knows that the trial balance is wrong because it do...

Q: Starr Mfg.’s predetermined overhead rate is 200% of direct

Starr Mfg.’s predetermined overhead rate is 200% of direct labor. Information on the company’s production activities during September 2015 follows. a. Purchased raw...

Q: King Company produces variations of its product, a megatron, in

King Company produces variations of its product, a megatron, in response to custom orders from its customers. On June 1, the company had no inventories of work in process or finished goods but held th...

Q: Dream Toys Company manufactures video game consoles and accounts for product costs

Dream Toys Company manufactures video game consoles and accounts for product costs using process costing. The company uses a single processing department. The following information is available regard...

Q: Abraham Company uses process costing to account for its production costs.

Abraham Company uses process costing to account for its production costs. Conversion is added evenly throughout the process. Direct materials are added at the beginning of the process. During Septembe...

Q: Braun Company produces its product through a single processing department. Direct

Braun Company produces its product through a single processing department. Direct materials are added at the beginning of the process. Conversion costs are added to the product evenly throughout the p...

Q: Switch Co. manufactures a single product in one department. Direct

Switch Co. manufactures a single product in one department. Direct labor and overhead are added evenly throughout the process. Direct materials are added as needed. The company uses monthly reporting...

Q: Refer to the information in Problem 20-4B. Assume that

Refer to the information in Problem 20-4B. Assume that Switch uses the FIFO method to account for its process costing system. The following additional information is available. * Beginning work in pro...

Q: During May, the production department of a process manufacturing system completed

During May, the production department of a process manufacturing system completed a number of units of a product and transferred them to finished goods. Of these transferred units, 62,500 were in proc...

Q: Belda Co. makes organic juice in two departments: cutting and

Belda Co. makes organic juice in two departments: cutting and blending. Direct materials are added at the beginning of each process, and conversion costs are added evenly throughout each process. The...

Q: Match each of the following items A through G with the best

Match each of the following items A through G with the best numbered description of its purpose. A. Factory Overhead account B. Process cost summary C. Equivalent units of production D. Work in Proces...

Q: Refer to the data in Exercise 18-8. Compute the

Refer to the data in Exercise 18-8. Compute the total (1) prime costs and (2) conversion costs for each company. Data from Exercise 18-8:

Q: For each of the following accounts for a manufacturing company, place

For each of the following accounts for a manufacturing company, place a ✓ in the appropriate column indicating that it appears on the balance sheet, the income statement, the schedul...

Q: Given the following selected account balances of Delray Mfg. prepare its

Given the following selected account balances of Delray Mfg. prepare its schedule of cost of goods manufactured for the year ended December 31, 2015. Include a listing of the individual overhead accou...

Q: Use the information in Exercise 18-13 to prepare an income

Use the information in Exercise 18-13 to prepare an income statement for Delray Mfg. (a manufacturer). Assume that its cost of goods manufactured is $534,390. Information from Exercise 18-13: Follo...

Q: Beck Manufacturing reports the information below for 2015. Using this information

Beck Manufacturing reports the information below for 2015. Using this information: 1. Prepare the schedule of cost of goods manufactured for the year. 2. Compute cost of goods sold for the year.

Q: Current assets for two different companies at fiscal year-end 2015

Current assets for two different companies at fiscal year-end 2015 are listed here. One is a manufacturer, Rayzer Skis Mfg., and the other, Sunrise Foods, is a grocery distribution company. (1) Identi...

Q: Using the following data, compute (1) the cost

Using the following data, compute (1) the cost of goods manufactured and (2) the cost of goods sold for both Garcon Company and Pepper Company for the year ended December 31, 2015.

Q: Use the data in Exercise 18-8 to prepare an income

Use the data in Exercise 18-8 to prepare an income statement and the current assets section of the balance sheet for each company. Ignore income taxes. Data from Exercise 18-8:

Q: Using Exhibit 19.17 as a guide, prepare summary journal

Using Exhibit 19.17 as a guide, prepare summary journal entries to record the following transactions and events a through g for a company in its first month of operations. a. Raw materials purchased o...

Q: Moonrise Bakery applies factory overhead based on direct labor costs. The

Moonrise Bakery applies factory overhead based on direct labor costs. The company incurred the following costs during 2015: direct materials costs, $650,000; direct labor costs, $3,000,000; and factor...

Q: Custom Cabinetry has one job in process (Job 120) as

Custom Cabinetry has one job in process (Job 120) as of June 30; at that time, its job cost sheet reports direct materials of $6,000, direct labor of $2,800, and applied overhead of $2,240. Custom Cab...

Q: The following information is available for Lock-Tite Company, which

The following information is available for Lock-Tite Company, which produces special-order security products and uses a job order costing system. Compute the following amounts for the month of May....

Q: Refer to the information in Exercise 20-12. Prepare a

Refer to the information in Exercise 20-12. Prepare a process cost summary using the FIFO method. (Round cost per equivalent unit calculations to two decimal places.) Information from Exercise 20-12:...

Q: Pro-Weave manufactures stadium blankets by passing the products through a

Pro-Weave manufactures stadium blankets by passing the products through a weaving department and a sewing department. The following information is available regarding its June inventories: The follo...

Q: Refer to the information in Exercise 20-14. Prepare journal

Refer to the information in Exercise 20-14. Prepare journal entries dated June 30 to record: (a) raw materials purchase, (b) direct materials usage, (c) indirect materials usage, (d) direct labor usag...

Q: Elliott Company produces large quantities of a standardized product. The following

Elliott Company produces large quantities of a standardized product. The following information is available for its production activities for March. Prepare a process cost summary report for this co...

Q: Oslo Company produces large quantities of a standardized product. The following

Oslo Company produces large quantities of a standardized product. The following information is available for its production activities for May. Prepare a process cost summary report for this company...

Q: The flowchart below shows the August production activity of the punching and

The flowchart below shows the August production activity of the punching and bending departments of Wire Box Company. Use the amounts shown on the flowchart to compute the missing numbers identified b...

Q: Hi-Test Company uses the weighted-average method of process

Hi-Test Company uses the weighted-average method of process costing to assign production costs to its products. Information for September follows. Assume that all materials are added at the beginning...

Q: The following journal entries are recorded in Kiesha Co.’s process

The following journal entries are recorded in Kiesha Co.’s process costing system. Kiesha produces apparel and accessories. Overhead is applied to production based on direct labor co...

Q: The Fields Company has two manufacturing departments, forming and painting.

The Fields Company has two manufacturing departments, forming and painting. The company uses the weighted-average method of process costing. At the beginning of the month, the forming department has 2...

Q: Refer to the information in Exercise 20-6. Assume that

Refer to the information in Exercise 20-6. Assume that Fields uses the FIFO method of process costing. 1. Calculate the equivalent units of production for the forming department. 2. Calculate the cost...

Q: The production department described in Exercise 20-8 had $850

The production department described in Exercise 20-8 had $850,368 of direct materials and $649,296 of conversion costs charged to it during April. Also, its beginning inventory of $167,066 consists of...

Q: Refer to information in Exercise 19-7. Prepare the journal

Refer to information in Exercise 19-7. Prepare the journal entry to allocate (close) overapplied or underapplied overhead to Cost of Goods Sold. Information from Exercise 19-7: The following informat...

Q: Use information in Exercise 19-7 to prepare journal entries for

Use information in Exercise 19-7 to prepare journal entries for the following events for the month of May. 1. Raw materials purchases for cash. 2. Direct materials usage. 3. Indirect materials usage....

Q: The following chart shows how costs flow through a business as a

The following chart shows how costs flow through a business as a product is manufactured. Some boxes in the flowchart show cost amounts. Compute the cost amounts for the boxes that contain question ma...

Q: RSTN Co. produces its product through two sequential processing departments.

RSTN Co. produces its product through two sequential processing departments. Direct materials and conversion are added to the product evenly throughout the process. The company uses monthly reporting...

Q: Lorenzo Company uses a job order costing system that charges overhead to

Lorenzo Company uses a job order costing system that charges overhead to jobs on the basis of direct material cost. At year-end, the Work in Process Inventory account shows the following. 1. Determi...

Q: Use information in Exercise 19-7 to prepare journal entries for

Use information in Exercise 19-7 to prepare journal entries for the following events for the month of May. 1. Direct labor usage. 2. Indirect labor usage. 3. Total payroll paid in cash. Information...

Q: Use information in Exercise 19-7 to prepare journal entries for

Use information in Exercise 19-7 to prepare journal entries for the following events for the month of May. 1. Incurred other overhead costs (record credit to Other Accounts). 2. Application of overhea...

Q: Harrelson Company manufactures pizza sauce through two production departments: Cooking and

Harrelson Company manufactures pizza sauce through two production departments: Cooking and Canning. In each process, materials and conversion costs are incurred evenly throughout the process. For the...

Q: The ledger of Custer Company has the following work in process account

The ledger of Custer Company has the following work in process account. Production records show that there were 400 units in the beginning inventory, 30% complete, 1,400 units started, and 1,500 uni...

Q: The Cutting Department of Cassel Company has the following production and cost

The Cutting Department of Cassel Company has the following production and cost data for July. Materials are entered at the beginning of the process. Conversion costs are incurred uniformly during th...

Q: The Blending Department of Luongo Company has the following cost and production

The Blending Department of Luongo Company has the following cost and production data for the month of April Costs: Work in process, April 1 Direct materials: 100% complete ………………………………………$100,000 Conv...

Q: Kostrivas Company has gathered the following information. Units in

Kostrivas Company has gathered the following information. Units in beginning work in process …………………………………………….–0– Units started into production …………………………………………………40,000 Units in e...

Q: In the course of routine checking of all journal entries prior to

In the course of routine checking of all journal entries prior to preparing year-end reports, Betty Eller discovered several strange entries. She recalled that the president’s son Jo...

Q: Florida Beach Company manufactures suntan lotion, called Surtan, in 11

Florida Beach Company manufactures suntan lotion, called Surtan, in 11-ounce plastic bottles. Surtan is sold in a competitive market. As a result, management is very cost-conscious. Surtan is manufact...

Q: Harris Furniture Company manufactures living room furniture through two departments: Framing

Harris Furniture Company manufactures living room furniture through two departments: Framing and Upholstering. Materials are entered at the beginning of each process. For May, the following cost data...

Q: For the year ended December 31, 2014, the job cost

For the year ended December 31, 2014, the job cost sheets of Cinta Company contained the following data Other data: 1. Raw materials inventory totaled $15,000 on January 1. During the year, $140,00...

Q: Stellar Inc. is a construction company specializing in custom patios.

Stellar Inc. is a construction company specializing in custom patios. The patios are constructed of concrete, brick, fiberglass, and lumber, depending upon customer preference. On June 1, 2014, the ge...

Q: Rodman Corporation’s fiscal year ends on November 30. The following accounts

Rodman Corporation’s fiscal year ends on November 30. The following accounts are found in its job order cost accounting system for the first month of the new fiscal year. Other dat...

Q: Rondeli Company manufactures bicycles and tricycles. For both products, materials

Rondeli Company manufactures bicycles and tricycles. For both products, materials are added at the beginning of the production process, and conversion costs are incurred uniformly. Rondeli Company use...

Q: Rosenthal Company manufactures bowling balls through two processes: Molding and Packaging

Rosenthal Company manufactures bowling balls through two processes: Molding and Packaging. In the Molding Department, the urethane, rubber, plastics, and other materials are molded into bowling balls....

Q: Seagren Industries Inc. manufactures in separate processes furniture for homes.

Seagren Industries Inc. manufactures in separate processes furniture for homes. In each process, materials are entered at the beginning, and conversion costs are incurred uniformly. Production and cos...

Q: Rivera Company has several processing departments. Costs charged to the Assembly

Rivera Company has several processing departments. Costs charged to the Assembly Department for November 2014 totaled $2,280,000 as follows. Production records show that 35,000 units were in beginni...

Q: Morse Company manufactures basketballs. Materials are added at the beginning of

Morse Company manufactures basketballs. Materials are added at the beginning of the production process and conversion costs are incurred uniformly. Production and cost data for the month of July 2014...

Q: Sanderson Company has the following production data for March: no beginning

Sanderson Company has the following production data for March: no beginning work in process, units started and completed 30,000, and ending work in process 5,000 units that are 100% complete for mater...

Q: Pedriani Company uses a job order cost system and applies overhead to

Pedriani Company uses a job order cost system and applies overhead to production on the basis of direct labor hours. On January 1, 2014, Job No. 25 was the only job in process. The costs incurred prio...

Q: For the year ended December 31, 2014, the job cost

For the year ended December 31, 2014, the job cost sheets of Dosey Company contained the following data. Other data: 1. Raw materials inventory totaled $20,000 on January 1. During the year, $100,00...

Q: Robert Perez is a contractor specializing in custom-built jacuzzis.

Robert Perez is a contractor specializing in custom-built jacuzzis. On May 1, 2014, his ledger contains the following data. Raw Materials Inventory ……â&#...

Q: Bell Company’s fiscal year ends on June 30. The following accounts

Bell Company’s fiscal year ends on June 30. The following accounts are found in its job order cost accounting system for the first month of the new fiscal year. Other data: 1. On J...

Q: Holiday Company manufactures basketballs and soccer balls. For both products,

Holiday Company manufactures basketballs and soccer balls. For both products, materials are added at the beginning of the production process and conversion costs are incurred uniformly. Holiday uses t...

Q: Steiner Corporation manufactures water skis through two processes: Molding and Packaging

Steiner Corporation manufactures water skis through two processes: Molding and Packaging. In the Molding Department, fiberglass is heated and shaped into the form of a ski. In the Packaging Department...

Q: Using the data in BE16-10, prepare the cost section

Using the data in BE16-10, prepare the cost section of the production cost report for Sanderson Company. Data in BE16-10: Sanderson Company has the following production data for March: no beginning w...

Q: Borman Corporation manufactures in separate processes refrigerators and freezers for homes.

Borman Corporation manufactures in separate processes refrigerators and freezers for homes. In each process, materials are entered at the beginning and conversion costs are incurred uniformly. Product...

Q: Luxman Company has several processing departments. Costs charged to the Assembly

Luxman Company has several processing departments. Costs charged to the Assembly Department for October 2014 totaled $1,298,400 as follows. Production records show that 25,000 units were in beginnin...

Q: Swinn Company manufactures bicycles. Materials are added at the beginning of

Swinn Company manufactures bicycles. Materials are added at the beginning of the production process, and conversion costs are incurred uniformly. Production and cost data for the month of May are as f...

Q: How can the agreement of Work in Process Inventory and job cost

How can the agreement of Work in Process Inventory and job cost sheets be verified?

Q: Milner Company is working on two job orders. The job cost

Milner Company is working on two job orders. The job cost sheets showthe following. Prepare the three summary entries to record the assignment of costs to Work in Process from the data on the job co...

Q: The assembly department has the following production data for the cur

The assembly department has the following production data for the cur Materials are entered at the beginning of the process. The ending work in process units are 70% complete as to conversion costs....

Q: Diane Barone was a good friend of yours in high school and

Diane Barone was a good friend of yours in high school and is from your home town. While you chose to major in accounting when you both went away to college, she majored in marketing and management. Y...

Q: Clauss Company transfers out 14,000 units and has 2,

Clauss Company transfers out 14,000 units and has 2,000 units of ending work in process that are 25% complete. Materials are entered at the beginning of the process and there is no beginning work in p...

Q: Reyes Company transfers out 12,000 units and has 2,

Reyes Company transfers out 12,000 units and has 2,000 units of ending work in process that are 25% complete. Materials are entered at the beginning of the process and there is no beginning work in pr...

Q: At Trent Company, there are 800 units of ending work in

At Trent Company, there are 800 units of ending work in process that are 100% complete as to materials and 40% complete as to conversion costs. If the unit cost of materials is $3 and the total costs...

Q: Indicate whether each of the following statements is true or false.

Indicate whether each of the following statements is true or false. 1. Many hospitals use job order costing for small, routine medical procedures. 2. A manufacturer of computer flash drives would use...

Q: Langdon Company produced 9,000 units during the past year,

Langdon Company produced 9,000 units during the past year, but only 8,200 of the units were sold. The following additional information is also available. Direct materials used ……………………………………………………. $...

Q: Robert Mallory has prepared the following list of statements about process cost

Robert Mallory has prepared the following list of statements about process cost accounting. 1. Process cost systems are used to apply costs to similar products that are mass produced in a continuous f...

Q: Stine Company uses a job order cost system. On May 1

Stine Company uses a job order cost system. On May 1, the company has a balance in Work in Process Inventory of $3,500 and two jobs in process: Job No. 429 $2,000, and Job No. 430 $1,500. During May,...

Q: A job order cost sheet for Lowry Company is shown below.

A job order cost sheet for Lowry Company is shown below. Instructions: (a) On the basis of the foregoing data, answer the following questions. (1) What was the balance in Work in Process Inventory o...

Q: Manufacturing cost data for Orlando Company, which uses a job order

Manufacturing cost data for Orlando Company, which uses a job order cost system, are presented below. Instructions: Indicate the missing amount for each letter. Assume that in all cases manufacturin...

Q: In Wayne Company, materials are entered at the beginning of each

In Wayne Company, materials are entered at the beginning of each process. Work in process inventories, with the percentage of work done on conversion costs, and production data for its Sterilizing Dep...

Q: At May 31, 2014, the accounts of Mantle Company show

At May 31, 2014, the accounts of Mantle Company show the following. 1. May 1 inventories—finished goods $12,600, work in process $14,700, and raw materials $8,200. 2. May 31 inventories—finished goods...

Q: Tierney Company begins operations on April 1. Information from job cost

Tierney Company begins operations on April 1. Information from job cost sheets shows the following. Job 12 was completed in April. Job 10 was completed in May. Jobs 11 and 13 were completed in June....

Q: The Welding Department of Thorpe Company has the following production and manufacturing

The Welding Department of Thorpe Company has the following production and manufacturing cost data for February 2014. All materials are added at the beginning of the process. Instructions: Prepare a...

Q: The Cutting Department of Keigi Company has the following production and\

The Cutting Department of Keigi Company has the following production and\ cost data for August. Materials are entered at the beginning of the process. Conversion costs are incurred uniformly during...

Q: The Smelting Department of Polzin Company has the following production and cost

The Smelting Department of Polzin Company has the following production and cost data for September. Production: Beginning work in process 2,000 units that are 100% complete as to materials and 20% com...

Q: The ledger of Hannon Company has the following work in process account

The ledger of Hannon Company has the following work in process account. Production records show that there were 800 units in the beginning inventory, 30% complete, 1,200 units started, and 1,500 uni...

Q: The Welding Department of Majestic Company has the following production and manufacturing

The Welding Department of Majestic Company has the following production and manufacturing cost data for February 2014. All materials are added at the beginning of the process. Majestic uses the FIFO m...

Q: Overton Company has gathered the following information. Units in

Overton Company has gathered the following information. Units in beginning work in process ……………………………………20,000 Units started into production …………………………………………..164,000 Units in ending work in process...

Q: Sanchez Co. has zero units of beginning work in process.

Sanchez Co. has zero units of beginning work in process. During the period, 12,000 units were completed, and there were 500 units of ending work in process one-fifth complete as to conversion cost and...

Q: Goode Company has the following production data for selected months.

Goode Company has the following production data for selected months. Compute equivalent units of production for materials and conversion costs, assuming materials are entered at the beginning of the...

Q: Trek Company has the following production data for April: units transferred

Trek Company has the following production data for April: units transferred out 40,000, and ending work in process 5,000 units that are 100% complete for materials and 40% complete for conversion cost...

Q: Data for Cascio Company are given in BE16-7. Production

Data for Cascio Company are given in BE16-7. Production records indicate that 18,000 units were transferred out, and 2,000 units in ending work in process were 50% complete as to conversion cost and 1...

Q: The Smelting Department of Mathews Company has the following production and cost

The Smelting Department of Mathews Company has the following production and cost data for November. Production: Beginning work in process 2,000 units that are 100% complete as to materials and 20% com...

Q: A receiver was appointed by the court to manage the affairs of

A receiver was appointed by the court to manage the affairs of Davis Manufacturing Company on March 31, 2015. On this date, the following balance sheet applied: Additional Information: 1. The cash a...

Q: Prost Company has filed a bankruptcy petition. Its account balances at

Prost Company has filed a bankruptcy petition. Its account balances at December 31, 2015, are presented here: The following additional information is available: 1. All notes receivable with the exce...

Q: Stiller Company uses a standard cost accounting system. Some of the

Stiller Company uses a standard cost accounting system. Some of the ledger accounts have been destroyed in a fire. The controller asks your help in reconstructing some missing entries and balances. I...

Q: At the end of 2015, Klaproth finds himself in a difficult

At the end of 2015, Klaproth finds himself in a difficult situation. He is a partner in a residential construction company, and the housing market has been adversely impacted by interest rates, mortga...

Q: Presented below are excerpts from the 2015 annual report of Daimler AG

Presented below are excerpts from the 2015 annual report of Daimler AG, a German company that manufactures luxury automobiles. Inventories are comprised as shown in table E.41. The amount of write-dow...

Q: The following inventory note appears in General Electric’s Year 3 annual report

The following inventory note appears in General Electric’s Year 3 annual report. LIFO revaluations decreased $70 million in Year 3, compared with decreases of $169 million in ear 2...

Q: Heurion Company is a job-order costing firm that uses a

Heurion Company is a job-order costing firm that uses a plantwide overhead rate based on direct labor hours. Estimated information for the year is as follows: Overhead …â
...

Q: At the beginning of March, Mendez Company had two jobs in

At the beginning of March, Mendez Company had two jobs in process, Job 86 and Job 87, with the following accumulated cost information: During March, two more jobs (88 and 89) were started. The follo...

Q: Gateway Construction Company, run by Jack Gateway, employs 25 to

Gateway Construction Company, run by Jack Gateway, employs 25 to 30 people as subcontractors for laying gas, water, and sewage pipelines. Most of Gateway’s work comes from contracts...

Q: Refer to the information for Lauren Ashley above. Required

Refer to the information for Lauren Ashley above. Required: 1. What was the cost of direct materials used in September? 2. What was the total manufacturing cost in September? 3. What was the cost of...

Q: Refer to the information for Lauren Ashely Company above.

Refer to the information for Lauren Ashely Company above. Required: What was the cost of goods sold for September? Data for Exercise 46: In September, Lauren Ashley Company purchased materials cost...

Q: Prull Company, a job-order costing firm, worked on

Prull Company, a job-order costing firm, worked on three jobs in July. Data are as follows: Overhead is applied to jobs at the rate of $10 per machine hour. By July 31, Jobs 86 and 88 were complet...

Q: Morning Smiles Coffee Company manufactures Stoneware French Press coffee makers. During

Morning Smiles Coffee Company manufactures Stoneware French Press coffee makers. During the month of March, the company purchased $350,000 of materials. Also during the month of March, Morning Smiles...

Q: Sedan Corporation, a Japanese automobile manufacturer, follows U.S

Sedan Corporation, a Japanese automobile manufacturer, follows U.S. GAAP and reports its results in millions of yen (Â¥). On March 31, 2013 and 2012, Sedan reported the following information...

Q: The Minevik Group is a Swedish-based, high-technology

The Minevik Group is a Swedish-based, high-technology engineering firm. It follows IFRS and reports its results in millions of Swedish kronor (SEK). For the years ended December 31, 2013 and 2012, Min...

Q: Refer to the information in Problem 40 concerning Sedan Corporation’s inventory for

Refer to the information in Problem 40 concerning Sedan Corporation’s inventory for the years ended March 31, 2013 and 2012. The notes to Sedan’s financial statemen...

Q: Golding Company, a job-order costing firm, worked on three jobs

Golding Company, a job-order costing firm, worked on three jobs in July. Data are as follows:Overhead is applied to jobs at the rate of $16 per machine hour. By July 31, Jobs 106 and 108 were complete...

Q: Jasper Company provided the following information for last year:

Jasper Company provided the following information for last year:Sales in units ………………………………………………. 280,000Selling price ………………………………………………………. $ 12Direct materials …………………………………………… 180,000Direct labo...

Q: Soo Office Equipment manufactures and sells metal shelving. It began operations

Soo Office Equipment manufactures and sells metal shelving. It began operations on January 1, 2016. Costs incurred for 2016 are as follows (V stands for variable; F stands for fixed): Direct material...

Q: Roary Chemicals has a mixing department and a refining department. Its

Roary Chemicals has a mixing department and a refining department. Its process-costing system in the mixing department has two direct materials cost categories (Chemical P and Chemical Q) and one conv...

Q: A number of terms are listed below: equivalent unit

A number of terms are listed below: equivalent unit (EU)………………………………………………….first-in, first-out (FIFO) weighted-average process-costing method………………standard-costing method Required: Select the terms...

Q: Refer to the information in Exercise 17-16. Suppose Bio

Refer to the information in Exercise 17-16. Suppose Bio Doc determines standard costs of $6.60 per equivalent unit for direct materials and $10.40 per equivalent unit for conversion costs for both beg...

Q: Consider the following data for the assembly division of a satellite manufacturer

Consider the following data for the assembly division of a satellite manufacturer: The assembly division uses the weighted-average method of process costing. Required: 1. Compute equivalent units f...

Q: For the data in Exercise 17-19, summarize total costs

For the data in Exercise 17-19, summarize total costs to account for, and assign these costs to units completed (and transferred out) and to units in ending work in process. Data from Exercise 17-19:...

Q: Refer to the information in Exercise 17-19. Suppose the

Refer to the information in Exercise 17-19. Suppose the assembly division uses the FIFO method of process costing instead of the weighted-average method. Required: 1. Compute equivalent units for dir...

Q: For the data in Exercise 17-19, use the FIFO

For the data in Exercise 17-19, use the FIFO method to summarize total costs to account for, and assign these costs to units completed and transferred out, and to units in ending work in process. Dat...

Q: Refer to the information in Exercise 17-19. Suppose the

Refer to the information in Exercise 17-19. Suppose the assembly division uses the standard-costing method of process costing. Suppose further that the assembly division determines standard costs of $...

Q: Asaya Clothing Inc. is a manufacturer of winter clothes. It

Asaya Clothing Inc. is a manufacturer of winter clothes. It has a knitting department and a finishing department. This exercise focuses on the finishing department. Direct materials are added at the e...

Q: Refer to the information in Exercise 17-24. Suppose that

Refer to the information in Exercise 17-24. Suppose that Asaya uses the FIFO method instead of the weighted-average method in all of its departments. The only changes to Exercise 17-24 under the FIFO...

Q: Consider the following data for the assembly division of Fenton Watches Inc

Consider the following data for the assembly division of Fenton Watches Inc.: The assembly division uses the weighted-average method of process costing. Required: Compute equivalent units for direc...

Q: For the data in Exercise 17-26, summarize total costs

For the data in Exercise 17-26, summarize total costs to account for, calculate cost per equivalent unit for direct materials and conversion costs, and assign total costs to units completed (and trans...

Q: Refer to the information in Exercise 17-26. Suppose the

Refer to the information in Exercise 17-26. Suppose the assembly division at Fenton Watches Inc. uses the FIFO method of process costing instead of the weighted-average method. Required: Compute equi...

Q: For the data in Exercise 17-26, use the FIFO

For the data in Exercise 17-26, use the FIFO method to summarize total costs to account for, calculate cost per equivalent unit for direct materials and conversion costs, and assign total costs to uni...

Q: Bucky’s Boxes makes boxes for moving. It sells its boxes to

Bucky’s Boxes makes boxes for moving. It sells its boxes to major national moving companies. Because of the simple nature of the production process, Bucky’s uses st...

Q: Refer to the information in Problem 17-34. Suppose that

Refer to the information in Problem 17-34. Suppose that Larsen Corp. uses the FIFO method instead of the weighted average method in all of its departments. The only changes to Problem 17-34 under the...

Q: Do Problem 17-36 using the FIFO method of process costing

Do Problem 17-36 using the FIFO method of process costing. If you did Problem 17-36, explain any difference between the cost of work completed and transferred out and the cost of ending work in proces...

Q: Publish Inc. has two departments: printing and binding. Each

Publish Inc. has two departments: printing and binding. Each department has one direct cost category (direct materials) and one indirect cost category (conversion costs). This problem focuses on the b...

Q: Refer to the information in Problem 17-39. Suppose that

Refer to the information in Problem 17-39. Suppose that Publish Inc. uses the FIFO method instead of the weighted-average method in all of its departments. The only changes to Problem 17-39 under the...

Q: Frito-Lay Inc. manufactures convenience foods, including potato chips

Frito-Lay Inc. manufactures convenience foods, including potato chips and corn chips. Production of corn chips occurs in four departments: cleaning, mixing, cooking, and drying and packaging. Consider...

Q: Paquita’s Pearls Company (PPC) is a manufacturer of knock-

Paquita’s Pearls Company (PPC) is a manufacturer of knock-off jewellery. Paquita attends Fashion Week in New York City every September and February to gauge the latest fashion trends...

Q: Plastco Industries manufactures a variety of plastic products, including a series

Plastco Industries manufactures a variety of plastic products, including a series of moulded chairs. The three models of moulded chairs, which are all variations of the same design, are standard (can...

Q: Margaret Major is the corporate controller of Leisure Suits. Leisure Suits

Margaret Major is the corporate controller of Leisure Suits. Leisure Suits has 20 plants worldwide that manufacture basic suits for retail stores. Each plant uses a process-costing system. At the end...

Q: Dimitri Company, a manufacturer of small tools, provided the following

Dimitri Company, a manufacturer of small tools, provided the following information from its accounting records for the year ended December 31, 2017. Inventory at December 31, 2017 (based on physical...

Q: Maddox Specialty Company, a division of Lost World Inc., manufactures

Maddox Specialty Company, a division of Lost World Inc., manufactures three models of gear shift components for bicycles that are sold to bicycle manufacturers, retailers, and catalog outlets. Since b...

Q: Robots, Inc. reported the following information regarding 2016–2017

Robots, Inc. reported the following information regarding 2016–2017 inventory. Instructions a. Comment on why Robots, Inc., might disclose how its LIFO inventories would be valued...

Q: Prior to 2017, Heberling Inc. excluded manufacturing overhead costs from

Prior to 2017, Heberling Inc. excluded manufacturing overhead costs from work in process and finished goods inventory. These costs have been expensed as incurred. In 2017, the company decided to chang...

Q: The objectives of internal control for an inventory management process are to

The objectives of internal control for an inventory management process are to provide assurance that transactions are properly authorized and recorded and that a. Independent internal verification of...

Q: Which of the following would most likely be an internal control activity

Which of the following would most likely be an internal control activity designed to detect errors and fraud concerning the custody of inventory? a. Periodic reconciliation of work in process with job...

Q: Which business process (conversion, financing, or human resources)

Which business process (conversion, financing, or human resources) is most closely associated with each transaction listed below?

Q: Lily Window Glass Co. (Lily) is a glass manufacturer

Lily Window Glass Co. (Lily) is a glass manufacturer that operates from a large production facility, where it undertakes continuous production 24 hours a day, seven days a week. Also on this site are...

Q: Refer to Professional Application Question 11.4 regarding Lily Window Glass

Refer to Professional Application Question 11.4 regarding Lily Window Glass Co. Now assume that you are the audit senior of Daffodil & Co. and are responsible for the audit of inventory for Lily. You w...

Q: You are the auditor of John Benson Ltd, a manufacturer of

You are the auditor of John Benson Ltd, a manufacturer of a variety of paper and cardboard stationery products. Product lines range from everyday items that are low value but high volume to more expen...

Q: The following are the job cost related accounts for the law firm

The following are the job cost related accounts for the law firm of Colaw Associates and their manufacturing equivalents: Cost data for the month of March follow. 1. Purchased supplies on account $1...

Q: The following information is available for Aikman Company. /

The following information is available for Aikman Company. Instructions a. Compute cost of goods manufactured. b. Prepare an income statement through gross profit. c. Show the presentation of the en...

Q: University Company produces collegiate apparel. From its accounting records, it

University Company produces collegiate apparel. From its accounting records, it prepares the following schedule and financial statements on a yearly basis. a. Cost of goods manufactured schedule. b. I...

Q: An analysis of the accounts of Roberts Company reveals the following manufacturing

An analysis of the accounts of Roberts Company reveals the following manufacturing cost data for the month ended June 30, 2020. Costs incurred: raw materials purchases $54,000, direct labor $47,000,...

Q: At May 31, 2020, the accounts of Lopez Company show

At May 31, 2020, the accounts of Lopez Company show the following. 1. May 1 inventories—finished goods $12,600, work in process $14,700, and raw materials $8,200. 2. May 31 inventories—finished goods...

Q: Robert Wilkins has prepared the following list of statements about process cost

Robert Wilkins has prepared the following list of statements about process cost accounting. 1. Process cost systems are used to apply costs to similar products that are mass-produced in a continuous f...

Q: The Welding Department of Healthy Company has the following production and manufacturing

The Welding Department of Healthy Company has the following production and manufacturing cost data for February 2020. All materials are added at the beginning of the process. Instructions Prepare a...

Q: The Cutting Department of Lasso Company has the following production and cost

The Cutting Department of Lasso Company has the following production and cost data for August. Materials are entered at the beginning of the process. Conversion costs are incurred uniformly during t...

Q: The ledger of American Company has the following work in process account

The ledger of American Company has the following work in process account. Production records show that there were 400 units in the beginning inventory, 30% complete, 1,600 units started, and 1,700 u...

Q: In Shady Company, materials are entered at the beginning of each

In Shady Company, materials are entered at the beginning of each process. Work in process inventories, with the percentage of work done on conversion costs, and production data for its Sterilizing Dep...

Q: Baden Company has gathered the following information. Units in

Baden Company has gathered the following information. Units in beginning work in process …………………………………………… –0– Units started into production ……………………………………………… 36,000 Units in ending work in process...

Q: The ledger of Hasgrove Company has the following work in process account

The ledger of Hasgrove Company has the following work in process account. Production records show that there were 800 units in the beginning inventory, 30% complete, 1,100 units started, and 1,500 u...

Q: Francum Company has the following data: direct labor $209,

Francum Company has the following data: direct labor $209,000, direct materials used $180,000, total manufacturing overhead $208,000, and beginning work in process $25,000. Compute (a) total manufactu...

Q: Data pertaining to job cost sheets for Dieker Company are given in

Data pertaining to job cost sheets for Dieker Company are given in BE20.3 and BE20.4. Prepare the job cost sheets for each of the three jobs using the format shown in Illustration 20.8. Data from BE2...

Q: Pix Company has the following production data for March: no beginning

Pix Company has the following production data for March: no beginning work in process, units started and completed 30,000, and ending work in process 5,000 units that are 100% complete for materials a...

Q: Using the data in BE21.10, prepare the cost section

Using the data in BE21.10, prepare the cost section of the production cost report for Pix Company using the FIFO approach. Data from BE21.10: Pix Company has the following production data for March:...

Q: The Smelting Department of Kiner Company has the following production data for

The Smelting Department of Kiner Company has the following production data for November. Beginning work in process 2,000 units that are 100% complete as to materials and 20% complete as to conversion...

Q: Data for Hollins Company are given in BE21.8. Production

Data for Hollins Company are given in BE21.8. Production records indicate that 18,000 units were transferred out, and 2,000 units in ending work in process were 50% complete as to conversion costs and...

Q: Lopez Company uses a standard cost accounting system. Some of the

Lopez Company uses a standard cost accounting system. Some of the ledger accounts have been destroyed in a fi re. The controller asks your help in reconstructing some missing entries and balances. In...

Q: Keisha Tombert, the bookkeeper for Washington Consulting, a political consulting

Keisha Tombert, the bookkeeper for Washington Consulting, a political consulting firm, has recently completed a managerial accounting course at her local college. One of the topics covered in the cour...

Q: An incomplete cost of goods manufactured schedule is presented below.

An incomplete cost of goods manufactured schedule is presented below. Instructions Complete the cost of goods manufactured schedule for Hobbit Company.

Q: Florida Beach Company manufactures sunscreen, called NoTan, in 11-

Florida Beach Company manufactures sunscreen, called NoTan, in 11-ounce plastic bottles. NoTan is sold in a competitive market. As a result, management is very cost-conscious. NoTan is manufactured th...

Q: The following information is available for Tomlin Company. /

The following information is available for Tomlin Company. Prepare the cost of goods manufactured schedule for the month of April.

Q: The Assembly Department for Right pens has the following production data for

The Assembly Department for Right pens has the following production data for the current month. Materials are entered at the beginning of the process. The ending work in process units are 70% comple...

Q: A job order cost sheet for Ryan Company is shown below.

A job order cost sheet for Ryan Company is shown below. Instructions a. On the basis of the foregoing data, answer the following questions. 1. What was the balance in Work in Process Inventory on Ja...

Q: Using the data in Question 14, what are (a

Using the data in Question 14, what are (a) the total cost of work in process and (b) the cost of goods manufactured? Data from Question 14: Tate Inc. has beginning work in process $26,000, direct ma...

Q: Wendall Company specializes in producing fashion outfits. On July 31,

Wendall Company specializes in producing fashion outfits. On July 31, 2020, a tornado touched down at its factory and general office. The inventories in the warehouse and the factory were completely d...

Q: Refer to P19.5A and add the following requirement.

Refer to P19.5A and add the following requirement. Prepare a letter to the president of the company, Shelly Phillips, describing the changes you made. Explain clearly why net income is different after...

Q: Empire Company is a manufacturer of smart phones. Its controller resigned

Empire Company is a manufacturer of smart phones. Its controller resigned in October 2020. An inexperienced assistant accountant has prepared the following income statement for the month of October 20...

Q: For the year ended December 31, 2020, the job cost

For the year ended December 31, 2020, the job cost sheets of Cinta Company contained the following data. Other data: 1. Raw materials inventory totaled $15,000 on January 1. During the year, $140,00...

Q: Case Inc. is a construction company specializing in custom patios.

Case Inc. is a construction company specializing in custom patios. The patios are constructed of concrete, brick, fiberglass, and lumber, depending upon customer preference. On June 1, 2020, the gener...

Q: The following data were taken from the records of Clarkson Company for

The following data were taken from the records of Clarkson Company for the fiscal year ended June 30, 2020. Instructions a. Prepare a cost of goods manufactured schedule. (Assume all raw materials u...

Q: Phillips Corporation’s fiscal year ends on November 30. The following accounts

Phillips Corporation’s fiscal year ends on November 30. The following accounts are found in its job order cost accounting system for the first month of the new fiscal year. Other d...

Q: Rosenthal Company manufactures bowling balls through two processes: Molding and Packaging

Rosenthal Company manufactures bowling balls through two processes: Molding and Packaging. In the Molding Department, the urethane, rubber, plastics, and other materials are molded into bowling balls....

Q: Thakin Industries Inc. manufactures dorm furniture in separate processes. In

Thakin Industries Inc. manufactures dorm furniture in separate processes. In each process, materials are entered at the beginning, and conversion costs are incurred uniformly. Production and cost data...

Q: Rivera Company has several processing departments. Costs charged to the Assembly

Rivera Company has several processing departments. Costs charged to the Assembly Department for November 2020 totaled $2,280,000 as follows. Production records show that 35,000 units were in beginni...

Q: Polk Company manufactures basketballs. Materials are added at the beginning of

Polk Company manufactures basketballs. Materials are added at the beginning of the production process and conversion costs are incurred uniformly. Production and cost data for the month of July 2020 a...

Q: Owen Company manufactures bicycles and tricycles. For both products, materials

Owen Company manufactures bicycles and tricycles. For both products, materials are added at the beginning of the production process, and conversion costs are incurred uniformly. Owen Company uses the...

Q: Stone street Enterprises makes garage doors. During the month of February

Stone street Enterprises makes garage doors. During the month of February, the company had four job orders: 205, 206, 207, and 208. Overhead was applied at predetermined rates, while actual factory ov...

Q: M. Evans & Sons manufactures parts for radios. For each

M. Evans & Sons manufactures parts for radios. For each job order, it maintains ledger sheets on which it records direct labor, direct materials, and factory overhead applied. The factory overhead con...

Q: Why must Work in Process Inventory be adjusted for factory overhead applied

Why must Work in Process Inventory be adjusted for factory overhead applied at year-end?

Q: Ortiz Company produced 9,000 units during the past year but

Ortiz Company produced 9,000 units during the past year but sold only 8,200 of the units. The following additional information is also available: Determine the ending inventory under variable costing;...

Q: The vice-president of Abscorp Ltd. is not happy.

The vice-president of Abscorp Ltd. is not happy. Sales have been rising steadily, but profits have been falling. In September 2020, Abscorp had record sales, but the lowest profits ever. The results f...

Q: Boat Refit Inc. produces and sells custom parts for powerboats.

Boat Refit Inc. produces and sells custom parts for powerboats. The company uses a costing system based on actual costs. Selected accounting and production information for fiscal 2020 is as follows: C...

Q: Wingfoot Co. began operations on July 1, 2019. By

Wingfoot Co. began operations on July 1, 2019. By the end of its first fiscal year, ended June 30, 2020, Wingfoot had sold 10,000 wingers. Selected data on operations for the year ended June 30, 2020,...

Q: Suraya Collier, the bookkeeper for Danner, Letourneau, and Majewski

Suraya Collier, the bookkeeper for Danner, Letourneau, and Majewski, a political consulting firm, has recently completed a managerial accounting course at her local community college. One of the topic...

Q: The following information is available for Sassafras Company: Prepare a

The following information is available for Sassafras Company: Prepare a cost of goods manufactured schedule and a partial income statement. Instructions a. Calculate the cost of goods manufactured....

Q: Corbin Manufacturing Company produces blankets. From its accounting records it prepares

Corbin Manufacturing Company produces blankets. From its accounting records it prepares the following schedule and financial statements on a yearly basis: Indicate in which schedule or financial state...

Q: An analysis of the accounts of Kananaskis Manufacturing reveals the following manufacturing

An analysis of the accounts of Kananaskis Manufacturing reveals the following manufacturing cost data for the month ended June 30, 2020: Prepare a cost of goods manufactured schedule, and present the...

Q: Tombert Company is a manufacturer of computers. Its controller resigned in

Tombert Company is a manufacturer of computers. Its controller resigned in October 2020. An inexperienced assistant accountant has prepared the following income statement for the month of October 2020...

Q: Last night, the sprinkler system at Plant A was accidentally set

Last night, the sprinkler system at Plant A was accidentally set off. The ensuing deluge destroyed most of the cost records in Plant A for the month just completed (May). The plant manager has come to...

Q: The following incomplete data are for Atlantic Pride Manufacturing: Calculate

The following incomplete data are for Atlantic Pride Manufacturing: Calculate prime cost, conversion cost, and cost of goods manufactured. Additional information for 2020: Direct materials â&...

Q: The following incomplete income statement information is available for Sawchule Ltd.

The following incomplete income statement information is available for Sawchule Ltd. for 2020: Prepare income statement schedules for the cost of goods sold and cost of goods manufactured. Sales …………...

Q: On January 31, 2020, the manufacturing facility of a mediumsized

On January 31, 2020, the manufacturing facility of a mediumsized company was severely damaged by an accidental fire. As a result, the company’s direct materials, work in process, and finished goods in...

Q: On January 31, a snowstorm damaged the office of a small

On January 31, a snowstorm damaged the office of a small business, and some of the accounting information stored in the computer’s memory was lost. The following information pertaining to January acti...

Q: In January 2020, Sayers Manufacturing incurred the following costs in manufacturing

In January 2020, Sayers Manufacturing incurred the following costs in manufacturing Detecto, its only product: Direct materials purchased ……â€&brvba...

Q: Match Manufacturing Company specializes in producing fashion outfits. On July

Match Manufacturing Company specializes in producing fashion outfits. On July 31, 2020, a tornado touched down at its factory and general office. The inventories in the warehouse and the factory were...

Q: Marvel Manufacturing Inc. provides you with the following data for the

Marvel Manufacturing Inc. provides you with the following data for the month of June: Calculate production and period costs, manufacturing overhead, and the cost of materials and labour. Prime costs w...

Q: Use the same data from BE2.12 above and the data

Use the same data from BE2.12 above and the data below to determine the missing amounts. Determine missing amounts in calculating cost of goods manufactured. Data from BE 2.12: //

Q: A job cost sheet for Rolen Company is shown below.

A job cost sheet for Rolen Company is shown below. Analyze a job cost sheet and prepare entries for manufacturing costs. Instructions a. On the basis of the foregoing data, answer the following ques...

Q: Manufacturing cost data for Pena Company, which uses a job-

Manufacturing cost data for Pena Company, which uses a job-order cost system, are presented below. Analyze costs of manufacturing and determine missing amounts. Instructions Indicate the missing amo...

Q: At May 31, 2020, the accounts of Hannifan Manufacturing Company

At May 31, 2020, the accounts of Hannifan Manufacturing Company show the following: Prepare cost of goods manufactured schedule and partial financial statements. 1. May 1 inventories—Finished Goods $1...

Q: Laubitz Company begins operations on April 1. Information from job cost

Laubitz Company begins operations on April 1. Information from job cost sheets shows the following: Calculate work in process and finished goods from job cost sheets. Each job was sold for 25% above...

Q: Shown below are the job cost-related accounts for the law

Shown below are the job cost-related accounts for the law firm of De Witte, Ozols, and Morton and their manufacturing equivalents: Prepare entries for costs of services provided. Law Firm Accounts ……...

Q: Pedro Morales and Associates, a CPA firm, uses joborder costing

Pedro Morales and Associates, a CPA firm, uses joborder costing to capture the costs of its audit jobs. There were no audit jobs in process at the beginning of November. Listed below are data concerni...

Q: For the year ended December 31, 2020, the job cost

For the year ended December 31, 2020, the job cost sheets of DeVoe Company contained the following data: Prepare entries in a job-order cost system and a partial income statement. Other data: 1. Raw...

Q: Enos Inc. is a construction company specializing in custom patios.

Enos Inc. is a construction company specializing in custom patios. The patios are constructed of concrete, brick, fibreglass, and lumber, depending on customer preference. On June 1, 2020, the general...

Q: Nicole Limited is a company that produces machinery to customer orders,

Nicole Limited is a company that produces machinery to customer orders, using a normal job-order cost system. It applies manufacturing overhead to production using a predetermined rate. This overhead...

Q: On November 30, 2020, there was a fire in the

On November 30, 2020, there was a fire in the factory of Able Manufacturing Limited, where you work as the controller. The work in process inventory was completely destroyed, but both the materials an...

Q: Vargas Corporation's fiscal year ends on June 30. The following

Vargas Corporation's fiscal year ends on June 30. The following accounts are found in its job-order cost accounting system for the first month of the new fiscal year: Analyze manufacturing accounts an...

Q: Lowry Manufacturing uses a job-order cost system and applies overhead

Lowry Manufacturing uses a job-order cost system and applies overhead to production on the basis of direct labour hours. On January 1, 2020, Job No. 25 was the only job in process. The costs incurred...

Q: For the year ended December 31, 2020, the job cost

For the year ended December 31, 2020, the job cost sheets of Mazzone Company contained the following data: Prepare entries in a job-order cost system and a partial income statement. Other data: 1. R...

Q: Giovanni Lofaro is a contractor specializing in custombuilt Jacuzzis. On May

Giovanni Lofaro is a contractor specializing in custombuilt Jacuzzis. On May 1, 2020, his ledger contains the following data: Prepare entries in a job-order cost system and cost of goods manufactured...

Q: Price-Gordon Architectural Consultants Ltd. Uses a modified job-

Price-Gordon Architectural Consultants Ltd. Uses a modified job-order costing system to keep track of project costs. During October 2020, the firm worked on four projects. The following table provides...

Q: Avid Assemblers uses normal job-order costing to assign costs to

Avid Assemblers uses normal job-order costing to assign costs to products. The company assembles and packages 25 different products according to customer specifications. Products are worked on in batc...

Q: The following data were taken from the records of Cougar Enterprises,

The following data were taken from the records of Cougar Enterprises, a Canadian manufacturer that uses a normal job-order costing system: During December, the company worked on jobs numbered 70 thr...

Q: Baehr Company is a manufacturer with a fiscal year that runs from

Baehr Company is a manufacturer with a fiscal year that runs from July 1 to June 30. The company uses a normal job-order cost accounting system for its production costs. It uses a predetermined overhe...

Q: Triple C Ltd. is in the business of manufacturing cabinets,

Triple C Ltd. is in the business of manufacturing cabinets, computer stands, and countertops. Most of its jobs are contracts for home builders. The following information is available for the month of...

Q: Based on the compatibility and efficiency of its newly designed sprinkler systems

Based on the compatibility and efficiency of its newly designed sprinkler systems, Waterways was successful in its bid to upgrade the irrigation systems for 10 soccer fields owned by the local municip...

Q: In its first year of operation, Montreal Printing Shop estimated manufacturing

In its first year of operation, Montreal Printing Shop estimated manufacturing overhead costs and activity in order to determine a predetermined overhead rate. At year end, overhead was over-applied b...

Q: Fishel Company is working on two job orders. The job cost

Fishel Company is working on two job orders. The job cost sheets show the following: Assign costs to work in process. Prepare the three summary entries to record the assignment of costs to Work in P...

Q: Milner Manufacturing uses a job-order costing system. On

Milner Manufacturing uses a job-order costing system. On May 1, the company has a balance in Work in Process Inventory of $3,500 and two jobs in process: Job No. 429 $2,000, and Job No. 430 $1,500. Du...

Q: Refer to requirement 2 of Exercise 17-16.

Refer to requirement 2 of Exercise 17-16. Required: Prepare summary journal entries for the use of direct materials and incurrence of conversion costs. Also prepare a journal entry to transfer out th...

Q: Roary Chemicals has a mixing department and a refining department. Its

Roary Chemicals has a mixing department and a refining department. Its process-costing system in the mixing department has two direct materials cost categories (chemical P and chemical Q) and one conv...

Q: Consider the following data for the assembly division of Fenton Watches,

Consider the following data for the assembly division of Fenton Watches, Inc.: The assembly division uses the weighted-average method of process costing. Required: Compute equivalent units for direc...

Q: Required: For the data in Exercise 17-19,

Required: For the data in Exercise 17-19, summarize total costs to account for, calculate cost per equivalent unit for direct materials and conversion costs, and assign total costs to units completed...

Q: Refer to the information in Exercise 17-19. Suppose the

Refer to the information in Exercise 17-19. Suppose the assembly division at Fenton Watches, Inc., uses the FIFO method of process costing instead of the weighted-average method. Required: Compute eq...

Q: Required: For the data in Exercise 17-19,

Required: For the data in Exercise 17-19, use the FIFO method to summarize total costs to account for, calculate cost per equivalent unit for direct materials and conversion costs, and assign total co...

Q: Refer to the information in Exercise 17-24. Suppose Bio

Refer to the information in Exercise 17-24. Suppose Bio Doc determines standard costs of $8.25 per equivalent unit for direct materials and $12.70 per equivalent unit for conversion costs for both beg...

Q: Asaya Clothing, Inc., is a manufacturer of winter clothes.

Asaya Clothing, Inc., is a manufacturer of winter clothes. It has a knitting department and a finishing department. This exercise focuses on the finishing department. Direct materials are added at the...

Q: .Refer to the information in Exercise 17-27. Suppose

.Refer to the information in Exercise 17-27. Suppose that Asaya uses the FIFO method instead of the weighted-average method in all of its departments. The only changes to Exercise17-27 under the FIFO...

Q: Appleton Company makes wooden toys in its forming department, and it

Appleton Company makes wooden toys in its forming department, and it uses the weighted-average method of process costing. All direct materials are added at the beginning of the process, and conversion...

Q: Chipcity is a fast-growing manufacturer of computer chips. Direct

Chipcity is a fast-growing manufacturer of computer chips. Direct materials are added at the start of the production process. Conversion costs are added evenly during the process. Some units of this p...

Q: Refer to the information in Exercise 18-24.

Refer to the information in Exercise 18-24. Required: Do Exercise 18-24 using the FIFO method of process costing. Data from Exercise 18-24: Chipcity is a fast-growing manufacturer of computer chips...

Q: Refer to the information in Exercise 18-24. Suppose Chipcity

Refer to the information in Exercise 18-24. Suppose Chipcity determines standard costs of $200 per equivalent unit for direct materials and $75 per equivalent unit for conversion costs for both beginn...

Q: Denver Office Equipment manufactures and sells metal shelving. It began operations

Denver Office Equipment manufactures and sells metal shelving. It began operations on January 1, 2011. Costs incurred for 2011 are as follows (V stands for variable; F stands for fixed): Variable ma...

Q: New Rise, Inc., produces porcelain figurines. The production is

New Rise, Inc., produces porcelain figurines. The production is semi-automated where the figurine is molded almost entirely by operator-less machines and then individually hand-painted. The overhead i...

Q: Brady Company uses normal costing in its job-costing system.

Brady Company uses normal costing in its job-costing system. The company produces custom bikes for toddlers. The beginning balances (December 1) and ending balances (as of December 30) in their invent...

Q: Tamden, Inc., prints custom marketing materials. The business was

Tamden, Inc., prints custom marketing materials. The business was started January 1, 2010. The company uses a normal-costing system. It has two direct cost pools, materials and labor and one indirect...

Q: Slopes, Inc., manufactures and sells snowboards. Slopes manufactures a

Slopes, Inc., manufactures and sells snowboards. Slopes manufactures a single model, the Pipex. In the summer of 2011, Slopes’ management accountant gathered the following data to pr...

Q: Ozumo’s Gardening makes several different kinds of mulch. Its busy period

Ozumo’s Gardening makes several different kinds of mulch. Its busy period is in the summer months. In August, the controller suddenly quit due to a stress-related disorder. He took w...

Q: Lester Company makes metal products and has a forging department. In

Lester Company makes metal products and has a forging department. In this department, materials are added at the beginning of the process and conversion takes place uniformly. At the start of November...

Q: Refer to the information in Problem 17-33. Suppose that

Refer to the information in Problem 17-33. Suppose that Larsen Company uses the FIFO method instead of the weighted-average method in all of its departments. The only changes to Problem 17-33 under th...

Q: Required: Do Problem 17-35 using the FIFO method

Required: Do Problem 17-35 using the FIFO method of process costing. If you did Problem 17-35, explain any difference between the cost of work completed and transferred out and the cost of ending work...

Q: Bookworm, Inc., has two departments: printing and binding.

Bookworm, Inc., has two departments: printing and binding. Each department has one direct-cost category (direct materials) and one indirect-cost category (conversion costs). This problem focuses on th...

Q: Refer to the information in Problem 17-38. Suppose that

Refer to the information in Problem 17-38. Suppose that Bookworm, Inc., uses the FIFO method instead of the weighted-average method in all of its departments. The only changes to Problem 17-38 under t...

Q: Frito-Lay, Inc., manufactures convenience foods, including potato

Frito-Lay, Inc., manufactures convenience foods, including potato chips and corn chips. Production of corn chips occurs in four departments: cleaning, mixing, cooking, and drying and packaging. Consid...

Q: Penelope’s Pearls Company (PPC) is a manufacturer of knock off

Penelope’s Pearls Company (PPC) is a manufacturer of knock off jewelry. Penelope attends Fashion Week in New York City every September and February to gauge the latest fashion trends...

Q: The Boston Company is a food-processing company based in San

The Boston Company is a food-processing company based in San Francisco. It operates under the weighted-average method of process costing and has two departments: cleaning and packaging. For the cleani...

Q: Refer to the information in Problem 18-30.

Refer to the information in Problem 18-30. Required: Do Problem 18-30 using the FIFO method of process costing. (Problem 18-33 explores additional facets of this problem.) Data from Problem 18-30:...

Q: In Boston Company’s packaging department, conversion costs are added evenly during

In Boston Company’s packaging department, conversion costs are added evenly during the process, and direct materials are added at the end of the process. Spoiled units are detected u...

Q: Refer to the information in Problem 18-32 except for the

Refer to the information in Problem 18-32 except for the transferred-in costs for May, which equal the total cost of good units completed and transferred out in May from the cleaning department, which...

Q: The Kim Company is a furniture manufacturer with two departments: molding

The Kim Company is a furniture manufacturer with two departments: molding and finishing. The company uses the weighted-average method of process costing. In August, the following data were recorded fo...

Q: The Ride-On-Wave Company (ROW) produces a

The Ride-On-Wave Company (ROW) produces a line of non-motorized boats. ROW uses a normal-costing system and allocates manufacturing overhead using direct manufacturing labor cost. The following data a...

Q: Delta Manufacturing Company uses a standard cost system in accounting for the

Delta Manufacturing Company uses a standard cost system in accounting for the cost of its main product. The following standards have been established for the direct manufacturing costs per unit: Dire...

Q: Tovar Company uses a standard cost accounting system. Some of the

Tovar Company uses a standard cost accounting system. Some of the ledger accounts have been destroyed in a fire. The controller asks for your help in reconstructing some missing entries and balances....

Q: Cost data for Sandusky Manufacturing Company for the month ended January 31

Cost data for Sandusky Manufacturing Company for the month ended January 31 are as follows: A. Prepare a cost of goods manufactured statement for January. B. Determine the cost of goods sold for Jan...

Q: Five selected transactions for the current month are indicated by letters in

Five selected transactions for the current month are indicated by letters in the following T accounts in a job order cost accounting system: Describe each of the five transactions.

Q: The following events took place for Chi-Lite Inc. during

The following events took place for Chi-Lite Inc. during June, the first month of operations as a producer of road bikes: • Purchased $400,000 of materials. • Used $343,750 of direct materials in prod...

Q: The following information is available for the first month of operations of

The following information is available for the first month of operations of Bahadir Company, a manufacturer of mechanical pencils: Sales………………………………………………………………………..$792,000 Gross profit……………………………………...

Q: The charges to Work in Process—Assembly Department for a period

The charges to Work in Process—Assembly Department for a period, together with information concerning production, are as follows. All direct materials are placed in process at the be...

Q: A. Based on the data in Exercise 17-11,

A. Based on the data in Exercise 17-11, determine the following: 1. Cost of beginning work in process inventory completed this period 2. Cost of units transferred to finished goods during the period 3...

Q: Based on the data in Exercise 17-14, determine the

Based on the data in Exercise 17-14, determine the following: A. Cost of beginning work in process inventory completed in November B. Cost of units transferred to the next department during November C...

Q: The debits to Work in Process—Roasting Department for Morning Brew

The debits to Work in Process—Roasting Department for Morning Brew Coffee Company for August, together with information concerning production, are as follows: All direct materials...

Q: AccuBlade Castings Inc. casts blades for turbine engines. Within the

AccuBlade Castings Inc. casts blades for turbine engines. Within the Casting Department, alloy is first melted in a crucible, then poured into molds to produce the castings. On May 1, there were 230 p...

Q: Domino Foods, Inc. , manufactures a sugar product by a

Domino Foods, Inc. , manufactures a sugar product by a continuous process, involving three production departments—Refining, Sifting, and Packing. Assume that records indicate that direct materials, di...

Q: The Converting Department of Hopkinsville Company had 1,200 units in

The Converting Department of Hopkinsville Company had 1,200 units in work in process at the beginning of the period, which were 25% complete. During the period, 16,000 units were completed and transfe...

Q: The following information concerns production in the Baking Department for March.

The following information concerns production in the Baking Department for March. All direct materials are placed in process at the beginning of production. A. Determine the number of units in work...

Q: A. Based upon the data in Exercise 17-7,

A. Based upon the data in Exercise 17-7, determine the following for March: 1. Direct materials cost per equivalent unit 2. Conversion cost per equivalent unit 3. Cost of the beginning work in process...

Q: The Converting Department of Tender Soft Tissue Company uses the average cost

The Converting Department of Tender Soft Tissue Company uses the average cost method and had 1,900 units in work in process that were 60% complete at the beginning of the period. During the period, 15...

Q: Ansara Company had the following abbreviated income statement for the year ended

Ansara Company had the following abbreviated income statement for the year ended December 31, 20Y2: (in millions) Sales...................................................................................

Q: The controller of MingWare Ceramics Inc. wishes to prepare a cost

The controller of MingWare Ceramics Inc. wishes to prepare a cost of goods sold budget for September. The controller assembled the following information for constructing the cost of goods sold budget:...

Q: The following data relating to direct materials cost for October of the

The following data relating to direct materials cost for October of the current year are taken from the records of Good Clean Fun Inc., a manufacturer of organic toys: Quantity of direct materials us...

Q: Several items are omitted from the income statement and cost of goods

Several items are omitted from the income statement and cost of goods manufactured statement data for two different companies for the month of December: Instructions: 1. For both companies, determin...

Q: Hildreth Company uses a job order cost system. The following data

Hildreth Company uses a job order cost system. The following data summarize the operations related to production for April, the first month of operations: A. Materials purchased on account, $147,000....

Q: Prepare a cost of goods sold budget for Pasadena Candle Inc.

Prepare a cost of goods sold budget for Pasadena Candle Inc. using the information in Basic Exercises 3 and 4. Assume the estimated inventories on January 1 for finished goods and work in process were...

Q: Clapton Company manufactures custom guitars in a wide variety of styles.

Clapton Company manufactures custom guitars in a wide variety of styles. The following incomplete ledger accounts refer to transactions that are summarized for May: In addition, the following inform...

Q: Technology Accessories Inc. is a designer, manufacturer, and distributor

Technology Accessories Inc. is a designer, manufacturer, and distributor of accessories for consumer electronic products. Early in 20Y3, the company began production of a leather cover for tablet comp...

Q: Bavarian Chocolate Company processes chocolate into candy bars. The process begins

Bavarian Chocolate Company processes chocolate into candy bars. The process begins by placing direct materials (raw chocolate, milk, and sugar) into the Blending Department. All materials are placed i...

Q: Pittsburgh Aluminum Company uses a process cost system to record the costs

Pittsburgh Aluminum Company uses a process cost system to record the costs of manufacturing rolled aluminum, which consists of the smelting and rolling processes. Materials are entered from smelting a...

Q: Mystic Bottling Company bottles popular beverages in the Bottling Department. The

Mystic Bottling Company bottles popular beverages in the Bottling Department. The beverages are produced by blending concentrate with water and sugar. The concentrate is purchased from a concentrate p...

Q: Oak Ridge Steel Company has two departments, Casting and Rolling.

Oak Ridge Steel Company has two departments, Casting and Rolling. In the Rolling Department, ingots from the Casting Department are rolled into steel sheet. The Rolling Department received 2,400 tons...

Q: The Rolling Department of Oak Ridge Steel Company had 300 tons in

The Rolling Department of Oak Ridge Steel Company had 300 tons in beginning work in process inventory (25% complete) on July 1. During July, 2,200 tons were completed. The ending work in process inven...

Q: The Rolling Department of Oak Ridge Steel Company had 300 tons in

The Rolling Department of Oak Ridge Steel Company had 300 tons in beginning work in process inventory (25% complete) on July 1. During July, 2,200 tons were completed. The ending work in process inven...

Q: The costs per equivalent unit of direct materials and conversion in the

The costs per equivalent unit of direct materials and conversion in the Rolling Department of Oak Ridge Steel Company are $180 and $62, respectively. The equivalent units to be assigned costs are as f...

Q: The following information concerns production in the Finishing Department for May.

The following information concerns production in the Finishing Department for May. The Finishing Department uses the average cost method. A. Determine the number of units in work in process inventor...

Q: As a preliminary to requesting budget estimates of sales, costs,

As a preliminary to requesting budget estimates of sales, costs, and expenses for the fiscal year beginning January 1, 20Y9, the following tentative trial balance as of December 31, 20Y8, is prepared...

Q: Kurtz Fencing Inc. uses a job order cost system. The

Kurtz Fencing Inc. uses a job order cost system. The following data summarize the operations related to production for March, the first month of operations: A. Materials purchased on account, $45,000....

Q: Ginocera Inc. is a designer, manufacturer, and distributor of

Ginocera Inc. is a designer, manufacturer, and distributor of custom gourmet kitchen knives. A new kitchen knife series called the Kitchen Ninja was released for production in early 20Y8. In January,...

Q: Hana Coffee Company roasts and packs coffee beans. The process begins

Hana Coffee Company roasts and packs coffee beans. The process begins by placing coffee beans into the Roasting Department. From the Roasting Department, coffee beans are then transferred to the Packi...

Q: Hearty Soup Co. uses a process cost system to record the

Hearty Soup Co. uses a process cost system to record the costs of processing soup, which requires the cooking and filling processes. Materials are entered from the cooking process at the beginning of...

Q: Sunrise Coffee Company roasts and packs coffee beans. The process begins

Sunrise Coffee Company roasts and packs coffee beans. The process begins in the Roasting Department. From the Roasting Department, the coffee beans are transferred to the Packing Department. The follo...

Q: The budget director of Feathered Friends Inc., with the assistance of

The budget director of Feathered Friends Inc., with the assistance of the controller, treasurer, production manager, and sales manager, has gathered the following data for use in developing the budget...

Q: As a preliminary to requesting budget estimates of sales, costs,

As a preliminary to requesting budget estimates of sales, costs, and expenses for the fiscal year beginning January 1, 20Y9, the following tentative trial balance as of December 31, 20Y8, is prepared...

Q: Canadian law firms typically use a partnership structure. The Income Tax

Canadian law firms typically use a partnership structure. The Income Tax Act allows law firms the reporting of revenue when invoices are remitted to clients, as opposed to when the work is performed a...

Q: (a). You are required to explain and discuss the alternative

(a). You are required to explain and discuss the alternative methods of accounting for normal and abnormal spoilage. (b). Weston Harvey Ltd assembles and finishes trapfoils from bought-in components...

Q: The costs per equivalent unit of direct materials and conversion in the

The costs per equivalent unit of direct materials and conversion in the Rolling Department of Keystone Steel Company are $60 and $10, respectively. The equivalent units to be assigned costs are as fol...

Q: Ansara Company had the following abbreviated income statement for the year ended

Ansara Company had the following abbreviated income statement for the year ended December 31, 2016: Assume that there were $3,860 million fixed manufacturing costs and $1,170 million fixed selling,...

Q: The following events took place for Video Wave Manufacturing Company during January

The following events took place for Video Wave Manufacturing Company during January 2016, the first month of its operations as a producer of digital video monitors: a. Purchased $133,200 of materials....

Q: The controller of Ming Ware Ceramics Inc. wishes to prepare a

The controller of Ming Ware Ceramics Inc. wishes to prepare a cost of goods sold budget for September. The controller assembled the following information for constructing the cost of goods sold budget...

Q: Genuine Spice Inc. began operations on January 1, 2016.

Genuine Spice Inc. began operations on January 1, 2016. The company produce eight- ounce bottles of hand and body lotion called Eternal Beauty. The lotion is sold wholesale in 12-bottle cases for $100...

Q: The following information concerns production in the Baking Department for August.

The following information concerns production in the Baking Department for August. All direct materials are placed in process at the beginning of production. a. Determine the number of units in work...

Q: a. Based upon the data in Exercise 18.7 determine

a. Based upon the data in Exercise 18.7 determine the following: Exercise 18.7: The following information concerns production in the Baking Department for August. All direct materials are placed in...

Q: Two items are omitted from each of the following three lists of

Two items are omitted from each of the following three lists of cost of goods manufactured statement data. Determine the amounts of the missing items, identifying them by letter.

Q: Lilac Skin Care Company consists of two departments, Blending and Filling

Lilac Skin Care Company consists of two departments, Blending and Filling. The Filling Department received 45,000 ounces from the Blending Department. During the period, the Filling Department complet...

Q: The following information is available for Ethtridge Manufacturing Company for the month

The following information is available for Ethtridge Manufacturing Company for the month ending January 31, 2016: Determine Ethtridge’s cost of goods manufactured for the month end...

Q: Which of the following are features of a lean manufacturing system?

Which of the following are features of a lean manufacturing system? a. Production pace matches demand b. Centralized work in process inventory locations c. Push scheduling d. Receive raw materials dir...

Q: Partial balance sheet data for Flat Top Company at December 31,

Partial balance sheet data for Flat Top Company at December 31, 2016, are as follows: Prepare the Current Assets section of Flat Top Company’s balance sheet at December 31, 2016....

Q: The following is a list of costs incurred by several businesses:

The following is a list of costs incurred by several businesses: a. Cost of fabric used by clothing manufacturer b. Maintenance and repair costs for factory equipment c. Rent for a warehouse used to s...

Q: Keystone Steel Company has two departments, Casting and Rolling. In

Keystone Steel Company has two departments, Casting and Rolling. In the Rolling Department, ingots from the Casting Department are rolled into steel sheet. The Rolling Department received 8,500 tons f...

Q: The Filling Department of Lilac Skin Care Company had 4,000

The Filling Department of Lilac Skin Care Company had 4,000 ounces in beginning work in process inventory (70% complete). During the period, 42,800 ounces were completed. The ending work in process in...

Q: The Rolling Department of Keystone Steel Company had 400 tons in beginning

The Rolling Department of Keystone Steel Company had 400 tons in beginning work in process inventory (20% complete). During the period, 7,900 tons were completed. The ending work in process inventory...

Q: The Filling Department of Lilac Skin Care had 4,000 ounces

The Filling Department of Lilac Skin Care had 4,000 ounces in beginning work in process inventory (70% complete). During the period, 42,800 ounces were completed. The ending work in process inventory...

Q: The Rolling Department of Keystone Steel Company had 400 tons in beginning

The Rolling Department of Keystone Steel Company had 400 tons in beginning work in process inventory (20% complete). During the period, 7,900 tons were completed. The ending work in process inventory...

Q: Prepare a cost of goods sold budget for My Life Chronicles Inc

Prepare a cost of goods sold budget for My Life Chronicles Inc. using the information in Practice Exercises 21-3A and 21-4A. Assume the estimated inventories on January 1, 2016, for finished goods and...

Q: Ebony Company has the following information for July: /

Ebony Company has the following information for July: For July, determine (a) the cost of goods manufactured and (b) the cost of goods sold.

Q: Prepare a cost of goods sold budget for Magnolia Candle Inc.

Prepare a cost of goods sold budget for Magnolia Candle Inc. using the information in Practice Exercises 21-3B and 21-4B. Assume the estimated inventories on January 1, 2016, for finished goods and wo...

Q: The costs per equivalent unit of direct materials and conversion in the

The costs per equivalent unit of direct materials and conversion in the Filling Department of Lilac Skin Care Company are $0.45 and $0.15, respectively. The equivalent units to be assigned costs are a...

Q: Victoria’s Closet mass-produces luxurious sleepwear for women. Consider the

Victoria’s Closet mass-produces luxurious sleepwear for women. Consider the following data for the flannel nightgown department for the month of January. All direct materials are add...

Q: Refer to the information provided in Problem 8.23

Refer to the information provided in Problem 8.23 Required (a) Prepare a process cost report using the FIFO method. (b) Explain how a standard cost report would differ from the FIFO report you just p...

Q: The accountant at Cellular Advantage needs to close the books at the

The accountant at Cellular Advantage needs to close the books at the end of January using the following information. Direct materials are added at the start of production. Conversion costs are incurre...

Q: Initially the Techtra entities bid for any type of electronic assembly work

Initially the Techtra entities bid for any type of electronic assembly work that became available (mostly subcontract work from other firms experiencing temporary capacity problems). But over the year...

Q: Maryborough Manufacturing has projected sales in units for four months of operations

Maryborough Manufacturing has projected sales in units for four months of operations as follows: The product sells for $18 per unit. Twenty-five per cent of the customers are expected to pay in the...

Q: Shane’s Shovels produces small, custom earth-moving equipment for landscaping

Shane’s Shovels produces small, custom earth-moving equipment for landscaping companies. Manufacturing overhead is allocated to work in process using an estimated overhead rate. Duri...

Q: Jasper Company uses a job costing system. Overhead is allocated based

Jasper Company uses a job costing system. Overhead is allocated based on 120 per cent of direct labour cost. Last month’s transactions in the work in process account are shown here:...

Q: Rebecca Ltd is a manufacturer of machines made to customer specifications.

Rebecca Ltd is a manufacturer of machines made to customer specifications. All production costs are accumulated by means of a job order costing system. The following information is available at the be...

Q: Fine Fans mass-produces small electric fans in Hawley Beach for

Fine Fans mass-produces small electric fans in Hawley Beach for home use. All direct materials are added at the beginning of production, and conversion costs are incurred evenly throughout production....

Q: Humphrey Manufacturing produces car parts and batteries. All direct materials are

Humphrey Manufacturing produces car parts and batteries. All direct materials are added at the beginning of production, and conversion costs are incurred evenly throughout production. The following pr...

Q: Wild Bird Feeders produces deluxe bird feeders for distribution to catalogue companies

Wild Bird Feeders produces deluxe bird feeders for distribution to catalogue companies and wild bird stores. The company uses an absorption costing system for internal reporting purposes but is consid...

Q: Following are the variances for Fine Products Manufacturing Company for the month

Following are the variances for Fine Products Manufacturing Company for the month of March. Assume that the price variance for direct materials is calculated at the time of purchase and that the amoun...

Q: Northcoast Manufacturing Company, a small manufacturer of parts used in appliances

Northcoast Manufacturing Company, a small manufacturer of parts used in appliances, just completed its first year of operations. The company’s controller, Vic Trainor, has been revie...

Q: Based on your understanding of the TOC explain why conventional standard costed

Based on your understanding of the TOC explain why conventional standard costed work in process inventories might hide problems, obscure interdependences and make it difficult to identify the real co...

Q: Weston Products manufactures an industrial cleaning compound that goes through three processing

Weston Products manufactures an industrial cleaning compound that goes through three processing departments—Grinding, Mixing, and Cooking. All raw materials are introduced at the sta...

Q: Gitano Products operates a job-order costing system and applies overhead

Gitano Products operates a job-order costing system and applies overhead cost to jobs on the basis of direct materials used in production (not on the basis of raw materials purchased). Its predetermin...

Q: Data concerning a recent period’s activity in the Assembly Department, the

Data concerning a recent period’s activity in the Assembly Department, the first processing department in a company that uses the FIFO method in its process costing, appear below: A...

Q: Pureform, Inc. uses the weighted-average method in its

Pureform, Inc. uses the weighted-average method in its process costing system. It manufactures a product that passes through two departments. Data for a recent month for the first department follow:...

Q: Jarvene Corporation uses the FIFO method in its process costing system.

Jarvene Corporation uses the FIFO method in its process costing system. The following data are for the most recent month of operations in one of the company’s processing departments:...

Q: Sunspot Beverages, Ltd., of Fiji uses the weighted-average

Sunspot Beverages, Ltd., of Fiji uses the weighted-average method in its process costing system. It makes blended tropical fruit drinks in two stages. Fruit juices are extracted from fresh fruits and...

Q: Selzik Company makes super-premium cake mixes that go through two

Selzik Company makes super-premium cake mixes that go through two processing departments Blending and Packaging. The following activity was recorded in the Blending Department during July: All materi...

Q: Why can undue emphasis on labor efficiency variances lead to excess work

Why can undue emphasis on labor efficiency variances lead to excess work in process inventories?

Q: This exercise relates to the Double Diamond Skis’ Shaping and Milling Department

This exercise relates to the Double Diamond Skis’ Shaping and Milling Department that was discussed earlier in the chapter. The Excel worksheet form that appears below consolidates d...

Q: Darwin Company manufactures only one product that it sells for $200

Darwin Company manufactures only one product that it sells for $200 per unit. The company uses plantwide overhead cost allocation based on the number of units produced. It provided the following estim...

Q: Data concerning a recent period’s activity in the Prep Department, the

Data concerning a recent period’s activity in the Prep Department, the first processing department in a company that uses process costing, appear below: A total of 20,100 units were...

Q: Superior Micro Products uses the weighted-average method in its process

Superior Micro Products uses the weighted-average method in its process costing system. During January, the Assembly Department completed its processing of 25,000 units and transferred them to the nex...

Q: Dillon Products manufactures various machined parts to customer specifications. The company

Dillon Products manufactures various machined parts to customer specifications. The company uses a job-order costing system and applies overhead cost to jobs on the basis of machine-hours. At the begi...

Q: Mason Corporation began operations at the beginning of the current year.

Mason Corporation began operations at the beginning of the current year. One of the company’s products, a refrigeration element, sells for $185 per unit. Information related to the c...

Q: Finlon Upholstery, Inc., uses a job-order costing system

Finlon Upholstery, Inc., uses a job-order costing system to accumulate manufacturing costs. The company’s work-in-process on December 31, 20x1, consisted of one job (no. 2077), which...

Q: Marco Polo Map Company’s cost of goods sold for March was $

Marco Polo Map Company’s cost of goods sold for March was $345,000. March 31 work-in-process inventory was 90 percent of March 1 work-in-process inventory. Manufacturing overhead app...

Q: Conundrum Corporation manufactures furniture. Due to a fire in the administrative

Conundrum Corporation manufactures furniture. Due to a fire in the administrative offices, the accounting records for November of the current year were partially destroyed. You have been able to piece...

Q: The following data pertain to the Vesuvius Tile Company for July.

The following data pertain to the Vesuvius Tile Company for July. Work in process, July 1 (in units) …………………………………………………………… 20,000  Units started during July ………………………………………………………………………. ?  To...

Q: A-1 Products manufactures wooden furniture using an assembly-line

A-1 Products manufactures wooden furniture using an assembly-line process. All direct materials are introduced at the start of the process, and conversion cost is incurred evenly throughout manufactur...

Q: The following data pertain to the Hercules Tire and Rubber Company for

The following data pertain to the Hercules Tire and Rubber Company for the month of May. Additional Information: a. Direct material is added at the beginning of the production process, and conversion...

Q: Glass Glow Company manufactures a variety of glass windows in its Egalton

Glass Glow Company manufactures a variety of glass windows in its Egalton plant. In Department I, clear glass sheets are produced, and some of these sheets are sold as finished goods. Other sheets mad...

Q: European Styles, Inc., manufactures women’s blouses of one quality,

European Styles, Inc., manufactures women’s blouses of one quality, which are produced in lots to fill each special order. Its customers are department stores in various cities. Euro...

Q: MacGyver Corporation manufactures a product called Miracle Goo, which comes in

MacGyver Corporation manufactures a product called Miracle Goo, which comes in handy for just about anything. The thick tarry substance is sold in six-gallon drums. Two raw materials are used; these a...

Q: Refer to the information presented in E2–18 for Verizox Company

Refer to the information presented in E2–18 for Verizox Company. Required: 1. Prepare the journal entry to apply manufacturing overhead to Work in Process Inventory. 2. Prepare the j...

Q: Reyes Manufacturing Company uses a job order cost system. At the

Reyes Manufacturing Company uses a job order cost system. At the beginning of January, the company had one job in process (Job 201) and one job completed but not yet sold (Job 200). Job 202 was starte...

Q: Oak Creek Furniture Factory (OCFF), a custom furniture manufacturer,

Oak Creek Furniture Factory (OCFF), a custom furniture manufacturer, uses job order costing to track the cost of each customer order. On March 1, OCFF had two jobs in process with the following costs:...

Q: Fairfield Company’s raw materials inventory transactions for the most recent month are

Fairfield Company’s raw materials inventory transactions for the most recent month are summarized here: 1. How much of the raw materials cost would be added to the Work in Process In...

Q: Fairfield Company’s payroll costs for the most recent month are summarized here

Fairfield Company’s payroll costs for the most recent month are summarized here: 1. Calculate how much of the labor costs would be added to the following accounts: a. Work in Process...

Q: Match each term with the best definition. Terms:

Match each term with the best definition. Terms: 1. Actual Manufacturing Overhead 2. Applied Manufacturing Overhead 3. Cost of Goods Manufactured 4. Cost of Goods Sold 5. Direct Materials 6. Finished...

Q: Pearl Company has the following production information for October: 60,

Pearl Company has the following production information for October: 60,000 units transferred out and 20,000 units in ending work in process that are 100 percent complete for materials and 60 percent c...

Q: Roland Corp. had the following production information for August:

Roland Corp. had the following production information for August: Roland’s ending work in process is 100 percent complete for materials and 30 percent complete for conversion. Roland...

Q: Refer to the information for Roland Corp. in M3-13

Refer to the information for Roland Corp. in M3-13. Prepare the journal entry to transfer the cost of completed units to Finished Goods Inventory. Data from M3-13: Roland Corp. had the following prod...

Q: Following is partial information for Delamunte Industries for the month of August

Following is partial information for Delamunte Industries for the month of August: Jobs finished during August are summarized here: Required: At the end of August, only one job, Job 248, was still in...

Q: Eagle Company had 1,150 units in work in process on

Eagle Company had 1,150 units in work in process on January 1. During the month, Eagle completed 4,800 units and had 2,000 units in process on January 31. Determine how many units Eagle started during...

Q: Christopher’s Custom Cabinet Company uses a job order cost system with overhead

Christopher’s Custom Cabinet Company uses a job order cost system with overhead applied as a percentage of direct labor costs. Inventory balances at the beginning of 2018 follow: The...

Q: The following information was obtained from the records of Appleton Corporation during

The following information was obtained from the records of Appleton Corporation during 2018. - Manufacturing Overhead was applied at a rate of 125 percent of direct labor dollars. . Beginning value of...

Q: Tyler Tooling Company uses a job order cost system with overhead applied

Tyler Tooling Company uses a job order cost system with overhead applied to products on the basis of machine hours. For the upcoming year, the company estimated its total manufacturing overhead cost a...

Q: Hamilton Custom Cabinet Company uses a job order cost system with overhead

Hamilton Custom Cabinet Company uses a job order cost system with overhead applied based on direct labor cost. Inventory balances at the beginning of 2018 follow: The following transactions occurred d...

Q: The following information was obtained from the records of Martinez Corporation during

The following information was obtained from the records of Martinez Corporation during 2018. 1. Manufacturing overhead was applied at a rate of 175 percent of direct labor dollars. 2. Beginning value...

Q: Place the following steps required to prepare a process costing production report

Place the following steps required to prepare a process costing production report into their correct order. List separately any step that should not be included in the process. 1. Reconcile the total...

Q: Knight Company uses a job order cost system with overhead applied to

Knight Company uses a job order cost system with overhead applied to products on the basis of machine hours. For the upcoming year, Knight estimated its total manufacturing overhead cost at $450,000 a...

Q: Fincher Farms uses process costing to account for the production of canned

Fincher Farms uses process costing to account for the production of canned vegetables. Direct materials are added at the beginning of the process and conversion costs are incurred uniformly throughout...

Q: Why is manufacturing overhead assigned to Work in Process Inventory in a

Why is manufacturing overhead assigned to Work in Process Inventory in a different manner than direct materials and direct labor? Explain how it is different.

Q: How do you apply manufacturing overhead to the Work in Process Inventory

How do you apply manufacturing overhead to the Work in Process Inventory account? Is it based on estimated or actual data?

Q: Will the amount of manufacturing overhead that is applied to Work in

Will the amount of manufacturing overhead that is applied to Work in Process Inventory be equal to the actual amount of manufacturing overhead costs incurred? Why or why not?

Q: The job cost sheet serves as a subsidiary ledger to the Work

The job cost sheet serves as a subsidiary ledger to the Work in Process Inventory account. Explain what this means and how you would verify this.

Q: What does a credit to the Work in Process Inventory account represent

What does a credit to the Work in Process Inventory account represent?

Q: Explain the differences between Raw Materials Inventory, Work in Process Inventory

Explain the differences between Raw Materials Inventory, Work in Process Inventory, and Finished Goods Inventory accounts.

Q: The following events took place for Sorensen Manufacturing Company during January,

The following events took place for Sorensen Manufacturing Company during January, the first month of its operations as a producer of digital video monitors: a. Purchased $250,000 of materials. b. Use...

Q: The following events took place for Rushmore Biking Inc. during February

The following events took place for Rushmore Biking Inc. during February, the first month of operations as a producer of road bikes: • Purchased $480,000 of materials. • Used $434,500 of direct materi...

Q: The charges to Work in Process—Assembly Department for a period

The charges to Work in Process—Assembly Department for a period, together with information concerning production, are as follows. All direct materials are placed in process at the be...

Q: a. Based on the data in Exercise 3-11,

a. Based on the data in Exercise 3-11, determine the following: 1. Cost of beginning work in process inventory completed this period 2. Cost of units transferred to finished goods during the period 3....

Q: Based on the data in Exercise 3-14, determine the

Based on the data in Exercise 3-14, determine the following: a. Cost of beginning work in process inventory completed in November b. Cost of units transferred to the next department during November c....

Q: Radford Inc. manufactures a sugar product by a continuous process,

Radford Inc. manufactures a sugar product by a continuous process, involving three production departments— Refining, Sifting, and Packing. Assume that records indicate that direct materials, direct la...

Q: The Converting Department of Worley Company had 2,400 units in

The Converting Department of Worley Company had 2,400 units in work in process at the beginning of the period, which were 35% complete. During the period, 10,800 units were completed and transferred t...

Q: The following information concerns production in the Baking Department for December.

The following information concerns production in the Baking Department for December. All direct materials are placed in process at the beginning of production. a. Determine the number of units in wor...

Q: a. Based upon the data in Exercise 3-7,

a. Based upon the data in Exercise 3-7, determine the following for December: 1. Direct materials cost per equivalent unit 2. Conversion cost per equivalent unit 3. Cost of the beginning work in proce...

Q: From the choices presented in parentheses, choose the appropriate term for

From the choices presented in parentheses, choose the appropriate term for completing each of the following sentences: a. A product, sales territory, department, or activity to which costs are traced...

Q: The budget director of Birding Homes & Feeders Inc., with the

The budget director of Birding Homes & Feeders Inc., with the assistance of the controller, treasurer, production manager, and sales manager, has gathered the following data for use in developing...

Q: Bellaire Inc. gathered the following data for use in developing the

Bellaire Inc. gathered the following data for use in developing the budgets for the first quarter (January, February, March) of its fiscal year: a. Estimated sales at $125 per unit: January â
...

Q: The following is a list of costs incurred by several manufacturing companies

The following is a list of costs incurred by several manufacturing companies: a. Annual picnic for plant employees and their families b. Cost of fabric used by clothing manufacturer c. Cost of plastic...

Q: Newport Inc. gathered the following data for use in developing the

Newport Inc. gathered the following data for use in developing the budgets for the first quarter (June, July, August) of its fiscal year: a. Estimated sales at $36 per unit: June …...

Q: During December, Krause Chemical Company had the following selected data concerning

During December, Krause Chemical Company had the following selected data concerning the manufacture of Xyzine, an industrial cleaner: All materials are added at the beginning of processing in this de...

Q: A company is using process costing with the first-in,

A company is using process costing with the first-in, first-out (FIFO) method, and all costs are added evenly throughout the manufacturing process. If there are 5,000 units in beginning work in proces...

Q: Data for the last fiscal year for Merlene Company are as follows

Data for the last fiscal year for Merlene Company are as follows: *Denominator level of activity is 750 units for the year Actual selling and administrative costs equaled the budgeted amount, and the...

Q: The costs per equivalent unit of direct materials and conversion in the

The costs per equivalent unit of direct materials and conversion in the Rolling Department of Kraus Steel Company are $750 and $120, respectively. The equivalent units to be assigned costs are as foll...

Q: Kraus Steel Company has two departments, Casting and Rolling. In

Kraus Steel Company has two departments, Casting and Rolling. In the Rolling Department, ingots from the Casting Department are rolled into steel sheet. The Rolling Department received 4,000 tons from...

Q: The Rolling Department of Kraus Steel Company had 200 tons in beginning

The Rolling Department of Kraus Steel Company had 200 tons in beginning work in process inventory (60% complete) on October 1. During October, 3,900 tons were completed. The ending work in process inv...

Q: The Rolling Department of Kraus Steel Company had 200 tons in beginning

The Rolling Department of Kraus Steel Company had 200 tons in beginning work in process inventory (60% complete) on October 1. During October, 3,900 tons were completed. The ending work in process inv...

Q: Ada Clothes Company produced 40,000 units during April. The

Ada Clothes Company produced 40,000 units during April. The Cutting Department used 12,800 direct labor hours at an actual rate of $16.50 per hour. The Sewing Department used 19,600 direct labor hours...

Q: Which costing system, job order or process, typically uses more

Which costing system, job order or process, typically uses more Work in Process Inventory accounts?

Q: How do the balances in the Work in Process Inventory, Finished

How do the balances in the Work in Process Inventory, Finished Goods Inventory, and Cost of Goods Sold general ledger accounts link to job cost sheets?

Q: Refer to information in Exercises 19-6 and 19-7

Refer to information in Exercises 19-6 and 19-7. Set up T-accounts for each of the following accounts, each of which started the month with a zero balance: Raw Materials Inventory, Work in Process Inv...

Q: The following information is available for a custom manufacturer. /

The following information is available for a custom manufacturer. 1. Compute the ending balances of Raw Materials Inventory, Work in Process Inventory, and Finished Goods Inventory. Hint: Set up T-ac...

Q: The following information is available for ADT Company, which produces special

The following information is available for ADT Company, which produces special-order security products and uses a job order costing system. Overhead is applied using a predetermined overhead rate of 7...

Q: Lorenzo Company applies overhead to jobs on the basis of direct materials

Lorenzo Company applies overhead to jobs on the basis of direct materials cost. At year-end, the Work in Process Inventory account shows the following. 1. Determine the predetermined overhead rate use...

Q: Tasty Bakery applies overhead based on direct labor costs. The company

Tasty Bakery applies overhead based on direct labor costs. The company reports the following costs for the year: direct materials, $650,000; direct labor, $3,000,000; and overhead applied, $1,800,000....

Q: A manufacturer began operations on April 1 and reports the information below

A manufacturer began operations on April 1 and reports the information below. All jobs are sold for 20% above cost. 1. Compute the May 31 balance in (a) Work in Process Inventory and (b) Finished Good...

Q: A manufacturer reports the following information at June 30. /

A manufacturer reports the following information at June 30. 1. Compute Work in Process Inventory at June 30. 2. Compute Finished Goods Inventory at June 30. 3. Compute cost of goods sold for June.

Q: Refer to the information in Exercise 20-9. (a

Refer to the information in Exercise 20-9. (a) Calculate the costs per equivalent unit of production for both direct materials and conversion for the department. (b) Assign costs to the department’s o...

Q: Hi-T Company uses the weighted average method of process costing

Hi-T Company uses the weighted average method of process costing. Information for the company’s first production process follows. All direct materials are added at the beginning of t...

Q: Midway Metal produces wire baskets in two departments, Bending and Painting

Midway Metal produces wire baskets in two departments, Bending and Painting. The Work in Process Inventory T-account for the Bending department is shown below. The 2,000 units in beginning work in pro...

Q: Sharpe Co. makes organic salsa in two production departments, Cooking

Sharpe Co. makes organic salsa in two production departments, Cooking and Bottling. Direct materials costs are added at the beginning of each process, and conversion costs are added evenly throughout...

Q: RSTN Co. produces its product in two sequential processing departments.

RSTN Co. produces its product in two sequential processing departments. During October, the first process finished and transferred 150,000 units of its product to the second process. Of these units, 3...

Q: Refer to Exercise 23-13. Hart Company uses a standard

Refer to Exercise 23-13. Hart Company uses a standard costing system. Prepare the journal entry to charge direct materials costs to Work in Process Inventory and record the direct materials variances....

Q: Fields Company has two manufacturing departments, Forming and Painting. The

Fields Company has two manufacturing departments, Forming and Painting. The company uses the weighted average method and it reports the following unit data for the Forming department. Units completed...

Q: The production department described in Exercise 20-8 reports the cost

The production department described in Exercise 20-8 reports the cost information below. a. Compute cost per equivalent unit for both direct materials and conversion. b. Using the weighted average met...

Q: Marco Company shows the following costs for three jobs worked on in

Marco Company shows the following costs for three jobs worked on in April. Additional Information a. Raw Materials Inventory has a March 31 balance of $80,000. b. Raw materials purchases in April are...

Q: Sager Company builds custom retaining walls for large commercial customers. On

Sager Company builds custom retaining walls for large commercial customers. On May 1, the company had no inventories of work in process or finished goods but held the following raw materials. On May 4...

Q: Perez Company shows the following costs for three jobs worked on in

Perez Company shows the following costs for three jobs worked on in September. Additional Information a. Raw Materials Inventory has an August 31 balance of $150,000. b. Raw materials purchases in Se...

Q: King Company builds custom order fulfillment centers for large e-commerce

King Company builds custom order fulfillment centers for large e-commerce companies. On June 1, the company had no inventories of work in process or finished goods but held the following raw materials...

Q: Dengo Co. makes a trail mix in two departments: Roasting

Dengo Co. makes a trail mix in two departments: Roasting and Blending. Direct materials are added at the beginning of each process, and conversion costs are added evenly throughout each process. The c...

Q: Abraham Company uses weighted average process costing to account for its production

Abraham Company uses weighted average process costing to account for its production costs. The company has two production processes. Conversion is added evenly throughout each process. Direct material...

Q: Harson Co. manufactures a single product in two departments: Forming

Harson Co. manufactures a single product in two departments: Forming and Assembly. Information for the Forming department for May follows. 1. Compute equivalent units of production for both direct mat...

Q: Belda Co. makes organic juice in two departments: Cutting and

Belda Co. makes organic juice in two departments: Cutting and Blending. Direct materials are added at the beginning of each process, and conversion costs are added evenly throughout each process. The...

Q: Based on customer interest in February, Santana expands her computer workstation

Based on customer interest in February, Santana expands her computer workstation furniture business to include mass production of standardized desks and chairs. She uses the weighted average method of...

Q: Manufactures baseball bats. In addition to its work in process inventories

Manufactures baseball bats. In addition to its work in process inventories, the company maintains inventories of raw materials and finished goods. It uses raw materials as direct materials in producti...

Q: Victory Company uses weighted average process costing. The company has two

Victory Company uses weighted average process costing. The company has two production processes. Conversion cost is added evenly throughout each process. Direct materials are added at the beginning of...

Q: QualCo manufactures a single product in two departments: Cutting and Assembly

QualCo manufactures a single product in two departments: Cutting and Assembly. Information for the Cutting department for May follows. 1. Compute equivalent units of production for both direct materia...

Q: Determine the missing amount for each separate situation involving work in process

Determine the missing amount for each separate situation involving work in process cost flows.

Q: Compute ending work in process inventory for a manufacturer using the following

Compute ending work in process inventory for a manufacturer using the following information.

Q: A company that uses job order costing reports the costs incurred below

A company that uses job order costing reports the costs incurred below. Overhead is applied at the rate of 60% of direct materials cost. The company has no beginning Work in Process or Finished Goods...

Q: Shin Co. reports the costs incurred below for the month ended

Shin Co. reports the costs incurred below for the month ended May 31. The company has no beginning Work in Process Inventory. Overhead is applied using a predetermined overhead rate of 120% of direct...

Q: Azule Co. manufactures in two sequential processes, Cutting and Binding

Azule Co. manufactures in two sequential processes, Cutting and Binding. The two processes report the information below for a recent month. Determine the ending balances in the Work in Process Invento...

Q: Refer to the information in QS 20-21. Using the

Refer to the information in QS 20-21. Using the FIFO method, assign direct materials costs to the Roasting department’s output—specifically, to the units completed and transferred out to the Mixing de...

Q: Refer to the information in QS 23-17. Alvarez records

Refer to the information in QS 23-17. Alvarez records standard costs in its accounts. Prepare the journal entry to charge overhead costs to the Work in Process Inventory account and to record any vari...

Q: During the current year, CF Manufacturing Co. incurred $370

During the current year, CF Manufacturing Co. incurred $370,000 of indirect labor costs, $15,000 of indirect materials costs, and $163,000 of other overhead costs. It also incurred $125,000 in rent co...

Q: The Work in Process Inventory account had a beginning balance of $

The Work in Process Inventory account had a beginning balance of $16,200 on April 1. During April, the cost of direct materials used was $408,000 and direct labor cost assigned to production was $56,0...

Q: Nicholes Corporation finished job no. 600 on June 1. On

Nicholes Corporation finished job no. 600 on June 1. On June 10, the company sold job no. 600 for $25,000 on account to a credit customer. Total manufacturing costs allocated to this job at the time o...

Q: For the month of January, Remco International’s direct labor rate variance

For the month of January, Remco International’s direct labor rate variance was $16,000 unfavorable, and its direct labor efficiency variance was $11,000 favorable. Actual direct labor costs during Jan...

Q: Classify each of the following activities into one of the four cost

Classify each of the following activities into one of the four cost of quality categories and/or identify it as a value-added or a non–value-added activity. a. Rework, due to poor materials, on bicycl...

Q: Dainty Diners, Inc., produces various types of bird feeders.

Dainty Diners, Inc., produces various types of bird feeders. The following is a detailed description of the steps involved in the production of wooden bird feeders. 1. Raw materials, such as wood, nai...

Q: The accounting records of Hobart Industries show the following information for the

The accounting records of Hobart Industries show the following information for the most recent year ended December 31. a. Find the amount debited to the Work In Process Inventory account during the y...

Q: Sky Tracker Corporation manufactures a telecommunications device. During its first year

Sky Tracker Corporation manufactures a telecommunications device. During its first year of operations, the company started and completed 45 devices at a cost of $66,000 per unit. Of these, 43 were sol...

Q: Easy Living Corporation manufactures houseboats. During its first year of operations

Easy Living Corporation manufactures houseboats. During its first year of operations, the company started and completed 40 boats at a cost of $96,000 per unit. Of these, 30 were sold for $156,000 each...

Q: The flow of manufacturing costs through the ledger accounts of ISP,

The flow of manufacturing costs through the ledger accounts of ISP, Inc., in the current year is illustrated as follows in summarized form. Instructions: Indicate the following amounts requested. Som...

Q: Jensen Fences uses job order costing. Manufacturing overhead is charged to

Jensen Fences uses job order costing. Manufacturing overhead is charged to individual jobs through the use of a predetermined overhead rate based on direct labor costs. The following information appea...

Q: The flow of manufacturing costs through the ledger accounts of Superior Locks

The flow of manufacturing costs through the ledger accounts of Superior Locks, Inc., in the current year is illustrated as follows in summarized form. Instructions: Indicate the following amounts req...

Q: / Each of the following statements may (or may not

Each of the following statements may (or may not) describe these technical terms. For each statement, indicate the term described, or answer “None” if the statement...

Q: Street Smarts, Inc., mass-produces street lights. Materials

Street Smarts, Inc., mass-produces street lights. Materials used in constructing the body of the lights are added at the start of the process, while the materials used in wiring the lights are added a...

Q: Brite Ideas, Inc., mass-produces reading lamps. Materials

Brite Ideas, Inc., mass-produces reading lamps. Materials used in constructing the body of the lamp are added at the start of the process, while the materials used in wiring the lamps are added at the...

Q: Bush Company budgeted that it would incur $176,000 of

Bush Company budgeted that it would incur $176,000 of manufacturing overhead costs in the upcoming period. By the end of the period, Bush had actually incurred manufacturing overhead costs totaling $2...

Q: Fenwick Corporation’s manufacturing and finished goods warehouse facilities burned to the ground

Fenwick Corporation’s manufacturing and finished goods warehouse facilities burned to the ground on January 31. The loss was fully covered by insurance. The insurance company wanted...

Q: One of Spa Magic’s products is a whirlpool spa. Two processing

One of Spa Magic’s products is a whirlpool spa. Two processing departments are involved in the whirlpool spa’s manufacture. The tub is assembled in one department,...

Q: The following T accounts summarize the flow of manufacturing costs during the

The following T accounts summarize the flow of manufacturing costs during the current year through the ledger accounts of Payback Corporation. Instructions: From the data supplied, indicate the follo...

Q: The following T accounts summarize the flow of manufacturing costs during the

The following T accounts summarize the flow of manufacturing costs during the current year through the ledger accounts of Double Bar Corporation. Instructions: From the data supplied, indicate the fo...

Q: The balances in the perpetual inventory accounts of Anditon Manufacturing Corporation at

The balances in the perpetual inventory accounts of Anditon Manufacturing Corporation at the beginning and end of the current year are as follows. The total dollar amounts debited and credited during...

Q: What amounts are debited to the Work in Process Inventory account during

What amounts are debited to the Work in Process Inventory account during the year? What amounts are credited to this account? What does the year-end balance in this account represent?

Q: Old Victrola, Inc., produces top-quality stereos and uses

Old Victrola, Inc., produces top-quality stereos and uses process costing. The manufacture of stereos is such that direct materials, labor, and overhead are all added evenly throughout the production...

Q: The balances in the perpetual inventory accounts of Valleyview Manufacturing Corporation at

The balances in the perpetual inventory accounts of Valleyview Manufacturing Corporation at the beginning and end of the current year are as follows. Total dollar amounts debited and credited during...

Q: / During July, jobs no. 103 and 104 were

During July, jobs no. 103 and 104 were completed, and jobs no. 101, 102, and 104 were delivered to customers. Jobs no. 105 and 106 are still in process at July 31. From this information, compute the f...

Q: Potter Corporation mass-produces pencils through several processing departments 10 hours

Potter Corporation mass-produces pencils through several processing departments 10 hours per day, 300 days per year. The company currently uses a process costing system and traces manufacturing costs...

Q: Dyelot Industries manufactures dyes and uses cost standards. The dye is

Dyelot Industries manufactures dyes and uses cost standards. The dye is produced in 1,000 pound batches; the normal level of production is 500 batches of dye per month. The standard costs per batch ar...

Q: Heritage Furniture Co. uses a standard cost system. One of

Heritage Furniture Co. uses a standard cost system. One of the company’s most popular products is an oak entertainment center that looks like an old icebox but houses a television, s...

Q: Bottom-Shelf Provisions uses standard costs in its process costing system

Bottom-Shelf Provisions uses standard costs in its process costing system. At the end of the current month, the following information is prepared by the company’s cost accountant Th...

Q: Foding Corporation has supplied the following information obtained from its standard cost

Foding Corporation has supplied the following information obtained from its standard cost system in May. Instructions: a. Determine the actual quantity of materials purchased and used in production d...

Q: Winona Enterprises uses job order costing. Manufacturing overhead is charged to

Winona Enterprises uses job order costing. Manufacturing overhead is charged to individual jobs through the use of a predetermined overhead rate based on direct labor costs. The following information...

Q: Use the information from Exercise 18.3 to complete a production

Use the information from Exercise 18.3 to complete a production cost report for Lamberton Industries for the month of July. Data from exercise 18.3: Lamberton Industries uses process costing. All of...

Q: Assume that on January 31 the Finishing Department of Corner Suites had

Assume that on January 31 the Finishing Department of Corner Suites had 5,000 partially trimmed and assembled executive desks in ending inventory. These units were, of course, 100 percent complete wit...

Q: Ripley Corporation has supplied the following information obtained from its standard cost

Ripley Corporation has supplied the following information obtained from its standard cost system in June. Instructions: a. Determine the actual quantity of materials purchased and used in production...

Q: AgriChem Industries manufactures fertilizer concentrate and uses cost standards. The fertilizer

AgriChem Industries manufactures fertilizer concentrate and uses cost standards. The fertilizer is produced in 500-pound batches; the normal level of production is 250 batches of fertilizer per month...

Q: Refer to the information from Problem 18.2B.

Refer to the information from Problem 18.2B. Instructions: Complete the May production cost report for the Engine Department of Turf Smart. Data from Problem 18.2B: One of Turf Smartâ€
...

Q: Lamberton Industries uses process costing. All of the company’s manufacturing activities

Lamberton Industries uses process costing. All of the company’s manufacturing activities take place in a single processing department. The following information was available for the...

Q: Refer to the information from Problem 18.2A.

Refer to the information from Problem 18.2A. Instructions: Complete the March production cost report for the Motor Department of Spa Magic. Data from Problem 18.2A: One of Spa Magicâ€...

Q: Matt’s materials quantity variance for the current month was exactly one-

Matt’s materials quantity variance for the current month was exactly one-half of its materials price variance. Both variances were unfavorable. The company’s cost a...

Q: Listed as follows are eight technical accounting terms introduced or emphasized in

Listed as follows are eight technical accounting terms introduced or emphasized in this chapter. Each of the following statements may (or may not) describe one of these technical terms. For each stat...

Q: One of Turf Smart’s products is a small lawnmower. Two processing

One of Turf Smart’s products is a small lawnmower. Two processing departments are involved in the mower’s production. The deck is assembled in one department, and a...

Q: Top-Shelf Classics uses standard costs in a process cost system

Top-Shelf Classics uses standard costs in a process cost system. At the end of the current month, the following information is prepared by the company’s cost accountant. The total s...

Q: The following information pertains to May activity in Accessory World’s Coating Department

The following information pertains to May activity in Accessory World’s Coating Department. a. Compute how many cut mat sets were started in the Coating Department during May. b. Pr...

Q: The accountants for Polyglaze, Inc., have developed the following information

The accountants for Polyglaze, Inc., have developed the following information regarding the standard cost and the actual cost of a product manufactured in June. Instructions: a. Compute the materials...

Q: Bailey’s materials quantity variance for the current month was exactly one-

Bailey’s materials quantity variance for the current month was exactly one-half of its materials price variance. Both variances were unfavorable. The company’s cost...

Q: Colonial Furniture Co. uses a standard cost system. One of

Colonial Furniture Co. uses a standard cost system. One of the company’s most popular products is a cherrywood desk. The per-unit standard costs of the desk, assuming a â€...

Q: The accountants for Monoglut, Inc., have developed the following information

The accountants for Monoglut, Inc., have developed the following information regarding the standard cost and the actual cost of a product manufactured in March. Instructions: a. Compute the materials...

Q: Galaxy Quest produces telescopes in a single processing department. All direct

Galaxy Quest produces telescopes in a single processing department. All direct materials used in the production of telescopes are added at the beginning of the process. Conversion costs (labor and ove...

Q: Myer’s Treats uses one gallon of mix for each cake produced by

Myer’s Treats uses one gallon of mix for each cake produced by the Baking Department. On August 1, the Baking Department had 600 cakes in process. These units were 100 percent complete with respect to...

Q: Robinson International began operations in early February. The company has provided

Robinson International began operations in early February. The company has provided the following summary of total manufacturing costs assigned to the job sheets of its entire client base during its f...

Q: Refer to Brief Exercise 2-1. For next year,

Refer to Brief Exercise 2-1. For next year, Bob’s Bistro predicts that 50,000 units will be produced with the following total costs: Direct materials = ? Direct labor = $ 100,000 Var...

Q: Refer to Brief Exercise 5-1 for data. Required

Refer to Brief Exercise 5-1 for data. Required: 1. Calculate the balance in Work in Process as of June 30. 2. Calculate the balance in Finished Goods as of June 30. 3. Calculate the cost of goods sold...

Q: Reider Company is a job-order costing firm that uses activity

Reider Company is a job-order costing firm that uses activity-based costing to apply overhead to jobs. Reider identified three overhead activities and related drivers. Budgeted information for the yea...

Q: Picante, Inc., provided the following information for the last calendar

Picante, Inc., provided the following information for the last calendar year: Beginning inventory: Direct materials $150,500 Work in process 95,300 Ending inventory: Direct materials $145,300 Work...

Q: For each of the following independent situations, calculate the missing values

For each of the following independent situations, calculate the missing values: 1. The Belen plant purchased $78,300 of direct materials during June. Beginning direct materials inventory was $2,500, a...

Q: Refer to Brief Exercise 2-2. Bob’s Bistro expects

Refer to Brief Exercise 2-2. Bob’s Bistro expects to produce 50,000 units and sell 50,500 units. Beginning inventory of finished goods is $13,000, and ending inventory of finished go...

Q: Fleming, Fleming, and Garcia, a local CPA firm,

Fleming, Fleming, and Garcia, a local CPA firm, provided the following data for individual returns processed for March (output is measured in number of returns): Units, beginning work in process — Uni...

Q: On April 1, Sangvikar Company had the following balances in its

On April 1, Sangvikar Company had the following balances in its inventory accounts: Materials Inventory $12,730 Work-in-Process Inventory 21,340 Finished Goods Inventory 8,700 Work-in-process inventor...

Q: On August 1, Cairle Company’s work-in-process inventory

On August 1, Cairle Company’s work-in-process inventory consisted of three jobs with the following costs: During August, four more jobs were started. Information on costs added to th...

Q: Salazar Company is a job-order costing firm that uses activity

Salazar Company is a job-order costing firm that uses activity-based costing to apply overhead to jobs. Salazar identified three overhead activities and related drivers. Budgeted information for the y...

Q: McKay, Inc., produces a subassembly used in the production of

McKay, Inc., produces a subassembly used in the production of hydraulic cylinders. The subassemblies are produced in three departments: Plate Cutting, Rod Cutting, and Welding. Materials are added at...

Q: Middelton Company manufactures a product that passes through two processes: Fabrication

Middelton Company manufactures a product that passes through two processes: Fabrication and Assembly. The following information was obtained for the Fabrication Department for October: a. All material...

Q: McCourt Company uses the FIFO method to account for the costs of

McCourt Company uses the FIFO method to account for the costs of production. For the first processing department, the following equivalent units schedule has been prepared: The cost per equivalent uni...

Q: Holmes Products, Inc., produces plastic cases used for video cameras

Holmes Products, Inc., produces plastic cases used for video cameras. The product passes through three departments. For April, the following equivalent units schedule was prepared for the first depart...

Q: Dama Company produces women’s blouses and uses the FIFO method to account

Dama Company produces women’s blouses and uses the FIFO method to account for its manufacturing costs. The product Dama makes passes through two processes: Cutting and Sewing. During...

Q: Brown Company has a product that passes through two processes: Grinding

Brown Company has a product that passes through two processes: Grinding and Polishing. During December, the Grinding Department transferred 20,000 units to the Polishing Department. The cost of the un...

Q: Using the same data found in Exercise 6-22, assume

Using the same data found in Exercise 6-22, assume the company uses the FIFO method. Required: Prepare a schedule of equivalent units, and compute the unit cost for the month of December. Data from E...

Q: Allright Test Design Company creates, produces, and sells Internet-

Allright Test Design Company creates, produces, and sells Internet-based CPA and CMA review courses for individual use. Davis Webber, head of human resources, is convinced that question development em...

Q: Swasey Fabrication, Inc., manufactures frames for bicycles. Each frame

Swasey Fabrication, Inc., manufactures frames for bicycles. Each frame passes through three processes: Cutting, Welding, and Painting. In September, the Cutting Department of the Tulsa, Oklahoma, plan...

Q: Refer to the data in Problem 6-26. Assume that

Refer to the data in Problem 6-26. Assume that the FIFO method is used. Required: 1. Prepare a physical flow schedule. 2. Calculate equivalent units of production for direct materials and conversion c...

Q: Hepworth Credit Corporation is a wholly owned subsidiary of a large manufacturer

Hepworth Credit Corporation is a wholly owned subsidiary of a large manufacturer of computers. Hepworth is in the business of financing computers, software, and other services that the parent corporat...

Q: Muskoge Company uses a process-costing system. The company manufactures

Muskoge Company uses a process-costing system. The company manufactures a product that is processed in two departments: Molding and Assembly. In the Molding Department, direct materials are added at t...

Q: Mojada Toys, Inc., manufactures plastic water guns. Each gun’s

Mojada Toys, Inc., manufactures plastic water guns. Each gun’s left and right frames are produced in the Molding Department. The left and right frames are then transferred to the Assembly Department w...

Q: Grayson Company produces an industrial chemical used for cleaning and lubricating machinery

Grayson Company produces an industrial chemical used for cleaning and lubricating machinery. In the Mixing Department, liquid and dry chemicals are blended to form slurry. Output is measured in gallon...

Q: Yohan Company has the following balances in its direct materials and direct

Yohan Company has the following balances in its direct materials and direct labor variance accounts at year-end: Unadjusted Cost of Goods Sold equals $1,500,000, unadjusted Work in Process equals $236...

Q: In a job-order costing system, what are the Work

In a job-order costing system, what are the Work in Process Inventory subsidiary records called? What information is included in these subsidiary records?

Q: During Year 3, Anywhere Inc. (AI) incurred the

During Year 3, Anywhere Inc. (AI) incurred the following product costs. Raw materials $62,000 Labor 89,422 Overhead 58,000 Recall that the Year 2 ending balance in the Work in Process (WIP) account wa...

Q: Rockeagle Corporation began fiscal Year 2 with the following balances in its

Rockeagle Corporation began fiscal Year 2 with the following balances in its inventory accounts. Raw Materials $30,000 Work in Process 45,000 Finished Goods 14,000 During the accounting period, Rockea...

Q: Newcomb Manufacturing Company was started on January 1, Year 1,

Newcomb Manufacturing Company was started on January 1, Year 1, when it acquired $5,000 cash from the issue of common stock. During the first year of operation, $1,600 of direct raw materials was purc...

Q: Aurora Inc. estimates manufacturing overhead costs for the Year 3 accounting

Aurora Inc. estimates manufacturing overhead costs for the Year 3 accounting period as follows. Equipment depreciation $344,000 Supplies 42,000 Materials handling 68,000 Property taxes 30,000 Product...

Q: Pawhuska Company estimates that its overhead costs for Year 2 will be

Pawhuska Company estimates that its overhead costs for Year 2 will be $720,000 and output in units of product will be 300,000 units. Required 1. Calculate Pawhuska’s predetermined overhead rate based...

Q: Tescott Company and Heizer Company both apply overhead to the Work in

Tescott Company and Heizer Company both apply overhead to the Work in Process Inventory account using direct labor hours. The following information is available for both companies for the year. Requir...

Q: Logan Company and Clayton Company assign manufacturing overhead to Work in Process

Logan Company and Clayton Company assign manufacturing overhead to Work in Process Inventory using direct labor cost. The following information is available for the companies for the year: Required 1....

Q: Kimball Company is a cosmetics manufacturer. Its assembly department receives raw

Kimball Company is a cosmetics manufacturer. Its assembly department receives raw cosmetics from the molding department. The assembly department places the raw cosmetics into decorative containers and...

Q: Lennox Watches Inc. makes watches. Its assembly department started the

Lennox Watches Inc. makes watches. Its assembly department started the accounting period with a beginning inventory balance of $68,000. During the accounting period, the department incurred $96,000 of...

Q: Ashton Ski Company manufactures snow skis. During the most recent accounting

Ashton Ski Company manufactures snow skis. During the most recent accounting period, the company’s finishing department transferred 5,000 sets of skis to finished goods. At the end of the accounting p...

Q: John's Car Wash (JCW) offers customers three cleaning options.

John's Car Wash (JCW) offers customers three cleaning options. Under Option 1, only the exterior is cleaned. With Option 2, the exterior and interior are cleaned. Option 3 provides exterior waxing as...

Q: Mapleton Corporation builds sailboats. On January 1, Year 3,

Mapleton Corporation builds sailboats. On January 1, Year 3, the company had the following account balances: $48,000 for both cash and common stock. Boat 25 was started on February 10 and finished on...

Q: Lugar Corporation makes custom-order furniture to meet the needs of

Lugar Corporation makes custom-order furniture to meet the needs of persons with disabilities. On January 1, Year 2, the company had the following account balances: $37,800 for both cash and common st...

Q: Hayward Manufacturing Company started Year 2 with the following balances in its

Hayward Manufacturing Company started Year 2 with the following balances in its inventory accounts: Raw Materials, $3,000; Work in Process, $3,600; Finished Goods, $3,960. During Year 2, Hayward purch...

Q: The following information was drawn from the accounting records of Boulder Manufacturing

The following information was drawn from the accounting records of Boulder Manufacturing Company. During the accounting period, Boulder paid $32,000 to purchase raw materials, $30,000 for direct labor...

Q: Moriarty Manufacturing began business on January 1, Year 1. The

Moriarty Manufacturing began business on January 1, Year 1. The following events pertain to its first year of operation. 1. Acquired $4,000 cash by issuing common stock. 2. Paid $1,600 cash for direct...

Q: Susank Manufacturing Company was started on January 1, Year 1,

Susank Manufacturing Company was started on January 1, Year 1, when it acquired $1,250 cash by issuing common stock. During its first year of operation, it purchased $250 of direct raw materials with...

Q: Use a horizontal statements model to show how each of the following

Use a horizontal statements model to show how each of the following independent accounting events affects the elements of the balance sheet and the income statement. Indicate whether the event increas...

Q: Creswell Enterprises’ budget included the following estimated costs for the Year 3

Creswell Enterprises’ budget included the following estimated costs for the Year 3 accounting period. Depreciation on manufacturing equipment $ 30,400 Cost of manufacturing supplies 6,000 Direct labor...

Q: Creek Company and Fort Company base their predetermined overhead rates on machine

Creek Company and Fort Company base their predetermined overhead rates on machine hours. The following information pertains to the companies’ most recent accounting periods. Required...

Q: Galilee Publications Inc. produces Bibles in volume. It printed and

Galilee Publications Inc. produces Bibles in volume. It printed and sold 60,000 Bibles last year. Demand is sufficient to support producing a particular edition continuously throughout the year. For t...

Q: Osprey Corporation, a manufacturer of diabetic testing kits, started November

Osprey Corporation, a manufacturer of diabetic testing kits, started November production with $150,000 in beginning inventory. During the month, the company incurred $740,000 of materials cost and $48...

Q: Wautoma Corporation, which makes suitcases, completed 42,000 suitcases

Wautoma Corporation, which makes suitcases, completed 42,000 suitcases in August Year 2. At the end of August, work in process inventory consisted of 5,000 suitcases estimated to be 40 percent complet...

Q: Glenvar Automotive Specialties Inc. has a successful market niche. It

Glenvar Automotive Specialties Inc. has a successful market niche. It customizes automobile interiors to fit the various needs of disabled customers. Some customers need special equipment to accommoda...

Q: Tang Drapery Inc. specializes in making custom draperies for both commercial

Tang Drapery Inc. specializes in making custom draperies for both commercial and residential customers. It began business on August 1, Year 1, by acquiring $60,000 cash through issuing common stock. I...

Q: Newton Advertisements Corporation designs and produces television commercials for clients. On

Newton Advertisements Corporation designs and produces television commercials for clients. On March 1, Year 1, the company issued common stock for $100,000 cash. During March, Newton worked on three j...

Q: The following accounting events affected Stratford Manufacturing Company during its first three

The following accounting events affected Stratford Manufacturing Company during its first three years of operation. Assume that all transactions are cash transactions. Transactions for Year 1 Started...

Q: Evelyn Carter started Carter Manufacturing Company to make a universal television remote

Evelyn Carter started Carter Manufacturing Company to make a universal television remote control device that she had invented. The company’s labor force consisted of part-time employees. The following...

Q: Blanding Manufacturing started in Year 2 with the following account balances.

Blanding Manufacturing started in Year 2 with the following account balances. Transactions during Year 2 Purchased $6,000 of raw materials with cash. Transferred $7,500 of raw materials to the product...

Q: The following events apply to Milligan Manufacturing Company. Assume that all

The following events apply to Milligan Manufacturing Company. Assume that all transactions are cash transactions unless otherwise indicated. Transactions for the Year 1 Accounting Period 1. The compan...

Q: Lisburn Plastic Products Company makes a plastic toy using two departments:

Lisburn Plastic Products Company makes a plastic toy using two departments: parts and assembly. The following data pertain to the parts department’s transactions in Year 2. 1. The beginning balance in...

Q: Wright Cola Corporation produces a new soft drink brand, Sweet Spring

Wright Cola Corporation produces a new soft drink brand, Sweet Spring, using two production departments: mixing and bottling. Wright’s beginning balances and data pertinent to the mi...

Q: Plymouth Company had 400 units of product in its work in process

Plymouth Company had 400 units of product in its work in process inventory at the beginning of the period and started 2,100 additional units during the period. At the end of the period, 750 units were...

Q: Molton Company had 300 units of product in work in process inventory

Molton Company had 300 units of product in work in process inventory at the beginning of the period. It started 1,500 units during the period and transferred 1,200 units to finished goods inventory. T...

Q: The following information is from the accounts of Depree Manufacturing Company for

The following information is from the accounts of Depree Manufacturing Company for Year 2. Required Divide the class into groups of four or five students per group and organize the groups into three s...

Q: The following accounting events affected Carmel Manufacturing Company during its first three

The following accounting events affected Carmel Manufacturing Company during its first three years of operation. Assume that all transactions are cash transactions. Transactions for Year 1 Started man...

Q: Meadowbrook Manufacturing started Year 2 with the following account balances.

Meadowbrook Manufacturing started Year 2 with the following account balances. Cash $7,000 Common stock 5,600 Retained earnings 2,800 Raw materials inventory 600 Work in process inventory 440 Finishe...

Q: Blanchard Manufacturing Company manufactures puzzles that depict the works of famous artists

Blanchard Manufacturing Company manufactures puzzles that depict the works of famous artists. The company rents a small factory and uses local labor on a part-time basis. The following accounting even...

Q: Custom Automobile Restoration Shop (CARS) is a small shop dedicated

Custom Automobile Restoration Shop (CARS) is a small shop dedicated to high-quality restora­tions of vintage cars. Although it will restore an automobile that a customer already owns, usual...

Q: Letcher Corporation makes blue jeans. Its process involves two departments,

Letcher Corporation makes blue jeans. Its process involves two departments, cutting and sewing. The following data pertain to the cutting department’s transactions in Year 2. 1. The beginning balance...

Q: Fullerton Paper Products Corporation produces paper cups using two production departments,

Fullerton Paper Products Corporation produces paper cups using two production departments, printing and forming. Beginning balances and printing department data for Year 2 follow. 1. Fullerton Paper P...

Q: At the beginning of Year 3, Elgin Company had 5,

At the beginning of Year 3, Elgin Company had 5,000 units of product in its work in process inventory, and it started 25,000 additional units of product during the year. At the end of the year, 6,000...

Q: Grenora Company’s beginning work in process inventory consisted of 7,500

Grenora Company’s beginning work in process inventory consisted of 7,500 units of product on January 1, Year 2. During Year 2, the company started 32,500 units of product and transferred 34,000 units...

Q: René Alverez knew she was in over her head soon after she

René Alverez knew she was in over her head soon after she took the job. Even so, the opportunity for promotion comes along rarely and she believed that she would grow into it. Ms. Alverez is the cost...

Q: Lewis Company had 8,000 units of product in work in

Lewis Company had 8,000 units of product in work in process inventory at the beginning of the period and started 16,000 units during the period. At the end of the period, 4,000 units remained in work...

Q: Direct raw materials were purchased on account, and the costs were

Direct raw materials were purchased on account, and the costs were subsequently transferred to Work in Process Inventory. How would the transfer affect assets, liabilities, equity, and cash flows? Wha...

Q: X Company recorded the payment for utilities used by the manufacturing facility

X Company recorded the payment for utilities used by the manufacturing facility by decreasing Cash and increasing Manufacturing Overhead. Why was the increase made to Manufacturing Overhead instead of...

Q: Duffield Lubricants produces oil-based machine lubricants. On December 1

Duffield Lubricants produces oil-based machine lubricants. On December 1, it had no work-inprocess inventory. It starts production of 86,000 gallons of lubricant in December and completes 72,000 gallo...

Q: Bremen Fitness Products produces a sports drink. On October 1,

Bremen Fitness Products produces a sports drink. On October 1, it had no work-in-process inventory. It started production of 9,000 cases of the drink in October and shipped 7,800 cases to retailers. (...

Q: Gullen Partners produces cleaning solvents. On September 1, it had

Gullen Partners produces cleaning solvents. On September 1, it had no work-in-process inventory. It started production of 56,000 gallons of solvent in September and completed production of 47,000 gall...

Q: Cedargrove Cider processes and bottles apple cider for sale through retail and

Cedargrove Cider processes and bottles apple cider for sale through retail and big box grocery outlets. It had no work in process on May 31 in its only inventory account. The company started 19,100 ca...

Q: Sturgis Manufacturing produces one model of precision tool and accounts for costs

Sturgis Manufacturing produces one model of precision tool and accounts for costs using a job cost system. Information from the most recent fiscal year indicates the following. ∙ Total manufacturing c...

Q: When using the FIFO method of process costing, total equivalent units

When using the FIFO method of process costing, total equivalent units produced for a given period equal a. The number of units started and completed during the period plus the number of units in begin...

Q: Hoyt, Inc. has a process costing system at its Forest

Hoyt, Inc. has a process costing system at its Forest Street Plant. All materials are introduced when conversion costs reach 40 percent. The following information is available for physical units durin...

Q: Kronk, Inc. provides the following information concerning the work in

Kronk, Inc. provides the following information concerning the work in process at its plant: ∙ Beginning inventory was partially complete (materials are 100 percent complete; conversion costs are 10 pe...

Q: Refer to the data in Exercise 8-22. Assume that

Refer to the data in Exercise 8-22. Assume that beginning inventory is 20 percent complete with respect to materials and 40 percent complete with respect to conversion costs. Required a. Compute the e...

Q: Refer to the data in Exercise 8-24. Required

Refer to the data in Exercise 8-24. Required a. Compute the equivalent units for materials using FIFO. b. Compute the equivalent units for conversion costs using FIFO. Exercise 8-24: Kronk, Inc. prov...

Q: Vermont Company uses continuous processing to produce stuffed bears and FIFO process

Vermont Company uses continuous processing to produce stuffed bears and FIFO process costing to account for its production costs. It uses FIFO because costs are quite unstable due to the volatile pric...

Q: Select the best answer for each of the following independent multiple-

Select the best answer for each of the following independent multiple-choice questions. a. Hillger Paints’s production cycle starts in Department A. The following information is avai...

Q: Chateaufort Craft (CC) makes three models of sea kayaks:

Chateaufort Craft (CC) makes three models of sea kayaks: CC-100, CC-200, and CC-500. CC manufactures the boats in two departments: Department A (Assembly) and Department B (Finishing). All three model...

Q: Drew Implements makes four models of utility and light construction tractors.

Drew Implements makes four models of utility and light construction tractors. The model names are DI-1400, DI-3800, DI-5000, and DI-8000. Drew manufactures the tractors in two departmentsâ€...

Q: Patton Dyes manufactures colorings, primarily for textiles. Information on the

Patton Dyes manufactures colorings, primarily for textiles. Information on the work in process follows: ∙ Beginning inventory, 115,000 partially complete liters. ∙ Ending inventory, 85,000 liters; uni...

Q: Custom Cabinet Company builds kitchen cabinets. On November 1, 20X1

Custom Cabinet Company builds kitchen cabinets. On November 1, 20X1, two jobs, Job 045 and Job 048, were in progress. The order is from Grace Apartments and was begun on October 5, 20X1. The accumulat...

Q: C8K Company manufactures plastic hats. The monthly production report for October

C8K Company manufactures plastic hats. The monthly production report for October 20X1 follows: INSTRUCTIONS Prepare the equivalent production computations for each department. Analyze: What portion of...

Q: H20 Inc. has two producing departments—fabricating and assembly.

H20 Inc. has two producing departments—fabricating and assembly. The data below is from the firm’s records for the month of July 20X1. There were no beginning inven...

Q: 1. Why do managers need special manufacturing records and a separate

1. Why do managers need special manufacturing records and a separate statement reporting the costs involved in producing goods? 2. How can an inventory be taken if work in process items are in varying...

Q: 1. The directors of the firm where you work have asked

1. The directors of the firm where you work have asked you to explain whether the job order cost accounting system or the process cost accounting system provides the more accurate costs for each unit...

Q: How is the work in process inventory determined?

How is the work in process inventory determined?

Q: Discuss how costs flow through the Raw Materials Inventory, Work in

Discuss how costs flow through the Raw Materials Inventory, Work in Process Inventory, and Finished Goods Inventory accounts to cost of goods sold.

Q: Explain what is meant by “the average method” of accounting

Explain what is meant by “the average method” of accounting for beginning work in process inventories in a process cost system.

Q: Explain how to compute the equivalent production for labor when there is

Explain how to compute the equivalent production for labor when there is a beginning work in process inventory for the period, assuming that the average cost method is used.

Q: How is the ending work in process inventory computed in a process

How is the ending work in process inventory computed in a process cost accounting system?

Q: Will the amount shown as a department’s ending inventory of work in

Will the amount shown as a department’s ending inventory of work in process on the cost of production report agree with the work in process for the department in the general ledger after adjusting and...

Q: The job order cost sheets for Nash Inc. show the following

The job order cost sheets for Nash Inc. show the following information about special orders for June and July of the current year: The company prices its jobs to make a 50 percent gross profit on sale...

Q: Selected data about the operations of the mixing department, the first

Selected data about the operations of the mixing department, the first department of Red Manufacturing, Inc., for November 20X1 follows. At the beginning of the month, there were 1,000 units in proces...

Q: Which of the following items would appear on the statement of cost

Which of the following items would appear on the statement of cost of goods manufactured? 1. Work in process inventory 2. Finished goods inventory 3. Raw materials inventory

Q: Information about production in the fabricating department of the AGAM Company for

Information about production in the fabricating department of the AGAM Company for March 20X1 follows: Beginning inventory –0– Transferred in from prior department 20,000 units Transferred out to next...

Q: Information about production in the fabricating department of the AGAM Company for

Information about production in the fabricating department of the AGAM Company for March 20X1 follows: Beginning inventory –0– Transferred in from prior department 20,000 units Transferred out to next...

Q: Information about production in the fabricating department of the AGAM Company for

Information about production in the fabricating department of the AGAM Company for March 20X1 follows: Beginning inventory –0– Transferred in from prior department 20,000 units Transferred out to next...

Q: On April 1, 20X1, the assembly department of Ros Inc

On April 1, 20X1, the assembly department of Ros Inc. had no beginning work in process. During the month, production was started on 10,000 units. The total cost of materials was $60,000. All materials...

Q: The cutting department is the first department of BrakeParts Co. On

The cutting department is the first department of BrakeParts Co. On April 1, 20X1, the beginning inventory in this department consisted of 700 units. Costs for the beginning work in process were as fo...

Q: The cutting department is the first department of BrakeParts Co. On

The cutting department is the first department of BrakeParts Co. On April 1, 20X1, the beginning inventory in this department consisted of 700 units. Costs for the beginning work in process were as fo...

Q: RealTime Inc. manufactures parts for computers. The Trial Balance section

RealTime Inc. manufactures parts for computers. The Trial Balance section of its worksheet and other year-end data follow. INSTRUCTIONS 1. Prepare a 12-column manufacturing worksheet for the year ende...

Q: Kitchen Inc. builds kitchen cabinets. On January 1, 20X2

Kitchen Inc. builds kitchen cabinets. On January 1, 20X2, one job (D42) was in progress. The order is from Dallas Apartment Corporation and was begun on December 21, 20X1. Costs accumulated to date on...

Q: RedTek, Inc., manufactures a single type of garden cart.

RedTek, Inc., manufactures a single type of garden cart. The monthly production report for May 20X1 follows: INSTRUCTIONS Prepare the equivalent production computations for each department. Analyze: W...

Q: KAT Games Inc. has two producing departments—fabricating and assembly

KAT Games Inc. has two producing departments—fabricating and assembly. The following data is from the firm’s records for the month of April 20X1. There were no begi...

Q: MP Corporation adds all materials at the beginning of production. On

MP Corporation adds all materials at the beginning of production. On August 1, 20X1, 2,500 gallons of its product were in production in the first department. During the month of August, 7,500 gallons...

Q: Caterpillar Inc. and Komatsu Ltd. are international manufacturers of industrial

Caterpillar Inc. and Komatsu Ltd. are international manufacturers of industrial and construction equipment. Caterpillar's headquarters is in the United States, while Komatsu's headquarters is in Japan...

Q: Pilar Chemicals has a mixing department and a refining department. Its

Pilar Chemicals has a mixing department and a refining department. Its process-costing system in the mixing department has two direct materials cost categories (chemical P and chemical Q) and one conv...

Q: Refer to the information in Exercise 18-31. Suppose Trendy

Refer to the information in Exercise 18-31. Suppose Trendy uses the FIFO method instead of the weighted-average method in all its departments. The only changes to Exercise 18-31 under the FIFO method...

Q: Refer to the information in Exercise 19-30. Suppose that

Refer to the information in Exercise 19-30. Suppose that WaferCo determines standard costs of $240 per equivalent unit for direct materials and $100 per equivalent unit for conver- sion costs for both...

Q: Gordon Bros Ltd manufactures plastic products. The following details relates to

Gordon Bros Ltd manufactures plastic products. The following details relates to Job #369: April 1, 2020: Direct materials of $420,000 and indirect materials of $17,000 were purchased. However, the com...

Q: Premier Golf Carts makes custom golf carts that it sells to dealers

Premier Golf Carts makes custom golf carts that it sells to dealers across the Southeast. The carts are produced in two departments, fabrication (a mostly automated department) and custom finishing (a...

Q: The following items appear as cost of a manufacturing company:

The following items appear as cost of a manufacturing company: A. Depreciation on plant and equipment B. Depreciation on delivery vans C. Insurance on plant and building D. Marketing manager’s salary...

Q: Brandon Company uses normal costing in its job-costing system.

Brandon Company uses normal costing in its job-costing system. The company produces custom bikes for toddlers. The beginning balances (December 1) and ending balances (as of December 30) in their inve...

Q: Skulas, Inc., manufactures and sells snowboards. Skulas manufactures a

Skulas, Inc., manufactures and sells snowboards. Skulas manufactures a single model, the Pipex. In late 2020, Skulas’s management accountant gathered the following data to prepare bu...

Q: Refer to the information in Problem 18-39. Suppose that

Refer to the information in Problem 18-39. Suppose that Larsen Company uses the FIFO method instead of the weighted-average method in all of its departments. The only changes to Problem 18-39 under th...

Q: Refer to the information in Problem 18-43. Suppose that

Refer to the information in Problem 18-43. Suppose that Publishers, Inc., uses the FIFO method instead of the weighted-average method in all of its departments. The only changes to Problem 18-43 under...

Q: Brown Industries operates several laminate flooring plants. Given the competitive pricing

Brown Industries operates several laminate flooring plants. Given the competitive pricing for flooring, Brown’s managers pay close attention to costs. Each plant uses a process- cost...

Q: Refer to the information in Problem 19- 37 except that the

Refer to the information in Problem 19- 37 except that the transferred-in costs of beginning work in process on May 1 are $33,090 (instead of $33,698). Transferred-in costs for May equal the total cos...

Q: The Horsheim Company manufactures furniture in two departments: molding and finishing

The Horsheim Company manufactures furniture in two departments: molding and finishing. The company uses the weighted- average method of process costing. August data for the finishing department are as...

Q: Assume the same facts for the Grand Meter Corporation as in Problem

Assume the same facts for the Grand Meter Corporation as in Problem 21-37, except that now assume the second trigger point for it is the sale, rather than the completion of finished goods: ■ Purchase...

Q: Virtual Company produces gadgets for the coveted small appliance market. The

Virtual Company produces gadgets for the coveted small appliance market. The following data reflect activity for the year 2020: Virtual Co. uses a normal-costing system and allocates overhead to work...

Q: Creative Lighting Inc. makes specialty table lamps. Manufacturing overhead is

Creative Lighting Inc. makes specialty table lamps. Manufacturing overhead is applied to production on a direct labor hours basis. During June, the first month of the company’s fiscal year, $110,880 o...

Q: The following information is from ABC Company’s general ledger: Beginning and

The following information is from ABC Company’s general ledger: Beginning and ending inventories, respectively, for raw materials were $12,000 and $15,000 and for work in process were $30,000 and $33,...

Q: Graystone’s production budget for September called for making 60,000 units

Graystone’s production budget for September called for making 60,000 units of a single product. The firm’s production standards allow one-half of a machine hour per...

Q: Custom Granite Inc. uses an absorption cost system for accumulating product

Custom Granite Inc. uses an absorption cost system for accumulating product cost. The following data are available for the past year: - Raw materials purchases totaled $240,000. - Direct labor costs i...

Q: York Co. uses a standard cost system. When raw materials

York Co. uses a standard cost system. When raw materials are purchased, the standard cost of the raw materials purchased is recorded as an increase in the Raw Materials Inventory account. When raw mat...