Problem 20-1A
Production cost flow and measurement; journal entries L.O. P1, P2, P3, P4
[The following information applies to the questions displayed
below.]
Edison Company manufactures wool
blankets and accounts for product costs using process costing. The following
information is available regarding its May inventories.
Beginning
Inventory
Ending
Inventory
Raw materials
inventory
$
60,000
$
41,000
Goods in process
inventory
449,000
521,500
Finished goods
inventory
610,000
342,001
The following additional
information describes the company’s production activities for May.
Raw materials
purchases (on credit)
$
250,000
Factory payroll cost
(paid in cash)
1,850,300
Other overhead cost
(Other Accounts credited)
82,000
Materials used
Direct
$
200,500
Indirect
50,000
Labor used
Direct
$
1,060,300
Indirect
790,000
Overhead rate as a
percent of direct labor
115
%
Sales (on credit)
$
3,000,000
The predetermined overhead rate
was computed at the beginning of the year as 115% of direct labor cost.
\
rev: 11_02_2011
references
1.
value:2.00
points
Problem 20-1A Part 1
Required:
1(a)
Compute the cost of products
transferred from production to finished goods. (Omit
the “$” sign in your response.)
Cost of products
transferred
$
1(b)
Compute the cost of goods sold. (Omit the “$” sign in your response.)
Cost of goods sold
$
rev: 10_31_2011
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2.
value:5.00
points
Problem 20-1A Part 2
2(a)
Prepare journal entry dated May 31
to record the raw materials purchases. (Omit
the “$” sign in your response.)
Date
General
Journal
Debit
Credit
May
31
2(b)
Prepare journal entry dated May 31
to record the direct materials usage. (Omit
the “$” sign in your response.)
Date
General
Journal
Debit
Credit
May
31
2(c)
Prepare journal entry dated May 31
to record the indirect materials usage. (Omit
the “$” sign in your response.)
Date
General
Journal
Debit
Credit
May
31
2(d)
Prepare journal entry dated May 31
to record the payroll costs. (Omit the “$” sign in your response.)
Date
General
Journal
Debit
Credit
May
31
2(e)
Prepare journal entry dated May 31
to record the direct labor costs. (Omit
the “$” sign in your response.)
Date
General
Journal
Debit
Credit
May
31
2(f)
Prepare journal entry dated May 31
to record the indirect labor costs. (Omit
the “$” sign in your response.)
Date
General
Journal
Debit
Credit
May
31
2(g)
Prepare journal entry dated May 31
to record the other overhead costs. (Omit
the “$” sign in your response.)
Date
General
Journal
Debit
Credit
May
31
2(h)
Prepare journal entry dated May 31
to record the overhead applied. (Omit
the “$” sign in your response.)
Date
General
Journal
Debit
Credit
May
31
2(i)
Prepare journal entry dated May 31
to record the goods transferred from production to finished goods.(Omit the “$” sign in your response.)
Date
General
Journal
Debit
Credit
May
31
2(j)
Prepare journal entry dated May 31
to record the sale of finished goods. (Omit
the “$” sign in your response.)
Date
General
Journal
Debit
Credit
May
31
Fairfax Company uses
weighted-average process costing to account for its production costs. Direct
labor is added evenly throughout the process. Direct materials are added at
the beginning of the process. During September, the company transferred
760,000 units of product to finished goods. At the end of September, the
goods in process inventory consists of 203,000 units that are 90% complete
with respect to labor. Beginning inventory had $438,165 of direct materials
and $188,540 of direct labor cost. The direct labor cost added in September
is $3,582,260, and the direct materials cost added is $2,932,335.
references
3.
value:2.00
points
Problem 20-2A Part 1
Required:
1(a)
Determine the equivalent units of
production with respect to direct labor.
Equivalent units
1(b)
Determine the equivalent units of
production with respect to direct materials.
Equivalent units
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4.
value:2.00
points
Problem 20-2A Part 2
2.
Compute both the direct labor cost
and the direct materials cost per equivalent unit. (Round your answers to 2 decimal place. Omit the
“$” sign in your response.)
Per
equivalent
unit
Direct labor cost
$
Direct materials cost
$
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5.
value:2.00
points
Problem 20-2A Part 3
3(a)
Compute both direct labor cost and
direct materials cost assigned to units completed and transferred out. (Due to rounding of cost per unit, the total
costs accounted for in the cost summary may not equal to sum of all the costs
given in the problem. Round your per unit costs to 2 decimal places and final
answers to the nearest dollar amount.)
Cost
transferred
out
Direct materials
$
Direct labor
$
3(b)
Compute both direct labor cost and
direct materials cost assigned to ending goods in process inventory. (Due to rounding of cost per unit, the total
costs accounted for in the cost summary may not equal to sum of all the costs
given in the problem. Round your per unit costs to 2 decimal places and final
answers to the nearest dollar amount.)
Costs
of ending goods in process
Direct materials
$
Direct labor
$
Problem 20-3A
Journalizing in process costing; equivalent units and costs L.O. C2, P1, P2, P3
[The following information applies to the questions displayed
below.]
Li Company produces large
quantities of a standardized product. The following information is available
for its production activities for January.
Raw materials
Factory overhead
incurred
Beginning inventory
$
16,000
Indirect materials
used
$
80,500
Raw materials
purchased (on credit)
280,000
Indirect labor used
40,000
Direct materials used
(171,500
)
Other overhead costs
159,920
Indirect materials
used
(80,500
)
Total factory overhead
incurred
$
280,420
Ending Inventory
$
44,000
Factory overhead
applied
Factory payroll
(140%
of direct labor cost)
Direct labor used
$
200,300
Total factory overhead
applied
$
280,420
Indirect labor used
40,000
Total payroll cost
(paid in cash)
$
240,300
Additional information about units
and costs of production activities follows.
Units
Costs
Beginning goods in
process inventory
2,600
Beginning goods in
process inventory
Started
26,000
Direct
materials
$
3,000
Ending goods in
process inventory
4,900
Direct
labor
3,500
Factory
overhead
4,000
$
10,500
Status of ending goods in process inventory
Direct materials added
171,500
Materials—Percent
complete
90
%
Direct labor added
200,300
Labor
and overhead—Percent complete
75
%
Overhead applied (140%
of direct labor)
280,420
Total costs
$
662,720
Ending goods in
process inventory
$
92,911
During January, 22,000 units of
finished goods are sold for $160 cash each. Cost information regarding
finished goods follows.
Beginning finished
goods inventory
$
150,000
Cost transferred in
569,809
Cost of goods sold
(598,390
)
Ending finished goods
inventory
$
121,419
references
6.
value:5.00
points
Problem 20-3A Part 1
Required:
1(a)
Prepare journal entry dated
January 31 to record the purchase of raw materials. (Omit the “$” sign in your response.)
Date
General
Journal
Debit
Credit
Jan.
31
1(b)
Prepare journal entry dated
January 31 to record the direct materials usage. (Omit the “$” sign in your response.)
Date
General
Journal
Debit
Credit
Jan.
31
1(c)
Prepare journal entry dated
January 31 to record the indirect materials usage. (Omit the “$” sign in your response.)
Date
General
Journal
Debit
Credit
Jan.
31
1(d)
Prepare journal entry dated
January 31 to record the factory payroll costs. (Omit
the “$” sign in your response.)
Date
General
Journal
Debit
Credit
Jan.
31
1(e)
Prepare journal entry dated
January 31 to record the direct labor costs used in production. (Omit the “$” sign in your response.)
Date
General
Journal
Debit
Credit
Jan.
31
1(f)
Prepare journal entry dated
January 31 to record the indirect labor costs. (Omit
the “$” sign in your response.)
Date
General
Journal
Debit
Credit
Jan.
31
1(g)
Prepare journal entry dated
January 31 to record the other overhead costs—credit Other Accounts.(Omit the “$” sign in your response.)
Date
General
Journal
Debit
Credit
Jan.
31
1(h)
Prepare journal entry dated
January 31 to record the overhead applied. (Omit
the “$” sign in your response.)
Date
General
Journal
Debit
Credit
Jan.
31
1(i)
Prepare journal entry dated
January 31 to record the goods transferred to finished goods. (Omit the “$” sign in your response.)
Date
General
Journal
Debit
Credit
Jan.
31
1(j)
Prepare journal entries dated
January 31 to record the sale of finished goods. (Omit the “$” sign in your response.)
Date
General
Journal
Debit
Credit
Jan.
31
check my workeBook
Links (4)references
7.
value:5.00
points
Problem 20-3A Part 2
2.
Prepare a process cost summary
report for this company, showing costs charged to production, units cost
information, equivalent units of production, cost per EUP, and its cost
assignment and reconciliation. (Due
to rounding of cost per unit, the total costs accounted for in the cost summary
may not equal to sum of all the costs given in the problem. Round your cost
per EUP answers to 2 decimal places and consider the same in the other
calculations. Round other answers to the nearest dollar amount. Omit the
“$” sign in your response.)
LI
COMPANY
Process
Cost Summary
For
Month Ended January 31
Costs Charged to Production
Costs of beginning
goods in process
$
$
Costs incurred this
period
$
Total costs to account
for
$
Unit
cost information
Units
to account for
Units
accounted for
Total units to account
for
Total units accounted
for
Equivalent
units of production
Direct
Materials
Direct
Labor
Factory
Overhead
EUP
EUP
EUP
EUP
EUP
EUP
Equivalent units of
production
EUP
EUP
EUP
Cost
per EUP
Direct
Materials
Direct
Labor
Factory
Overhead
$
$
$
Total costs
$
$
$
EUP
EUP
EUP
Cost per EUP
$
Per EUP
$
Per EUP
$
Per EUP
Cost
assignment and reconciliation
Costs transferred out
$
$
Costs of ending goods
in process
$
Total costs to account
for
$
roblem 20-5A Process
cost summary, equivalent units, cost estimates L.O. C2, C3, P4
[The following information applies to the questions displayed
below.]
Ogden Co. manufactures a single
product in one department. All direct materials are added at the beginning of
the manufacturing process. Direct labor and overhead are added evenly
throughout the process. The company uses monthly reporting periods for its
weighted-average process cost accounting. During October, the company
completed and transferred 24,600 units of product to finished goods
inventory. Its 4,200 units of beginning goods in process consisted of $20,800
of direct materials, $203,300 of direct labor, and $100,040 of factory
overhead. It has 3,000 units (100% complete with respect to direct materials
and 90% complete with respect to direct labor and overhead) in process at
month-end. After entries to record direct materials, direct labor, and
overhead for October, the company’s Goods in Process Inventory account
follows.
Goods
in Process Inventory
Acct.
No.133
Date
Explanation
Debit
Credit
Balance
Oct.
1
Balance
324,140
31
Direct materials
504,900
829,040
31
Direct labor
1,224,300
2,053,340
31
Applied overhead
963,840
3,017,180
references
8.
value:5.00
points
Problem 20-5A Part 1
1.
Prepare the company’s process cost
summary for October using the weighted-average method. (Due to rounding of cost per unit, the total
costs accounted for in the cost summary may not equal to sum of all the costs
given in the problem. Round your cost per EUP answers to 2 decimal places and
consider the same in the other calculations. Round other answers to the nearest
dollar amount. Omit the “$” sign in your response.)
OGDEN
CO.
Process
Cost Summary
For
Month Ended October 31
Costs Charged to Production
Costs of beginning
goods in process
$
$
Costs incurred this
period
$
Total costs to account
for
$
Unit
cost information
Units
to account for
Units
accounted for
Total units to account
for
Total units accounted
for
Equivalent
units of production
Direct
Materials
Direct
Labor
Factory
Overhead
EUP
EUP
EUP
EUP
EUP
EUP
Equivalent units of
production
EUP
EUP
EUP
Cost
per EUP
Direct
Materials
Direct
Labor
Factory
Overhead
$
$
$
Total costs
$
$
$
EUP
EUP
EUP
Cost per EUP
$ per EUP
$ per EUP
$ per EUP
Cost
assignment and reconciliation
Costs transferred out
$
$
Costs of ending goods
in process
$
Total costs to account
for
$
check my workeBook
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9.
value:2.00
points
Problem 20-5A Part 2
2.
Prepare the journal entry dated
October 31 to transfer the cost of completed units to finished goods
inventory. (Omit the “$” sign in your response.)
Date
General
Journal
Debit
Credit
Oct.
31
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my workeBook
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