5Electric Automotive Group is a maker of engines for high performance cars and uses a process costing system. The following information pertains to the final department of manufacturing for Electric'spopular engine, the "Atomic 8".Beginning work-in-process (40% completed)Transferred-inNormal spoilageAbnormal spoilageGood units transferred outEnding work-in-process (25% completed)Conversion costs in beginning inventory288 units1,520 units60 units60 units1,320 units368 unitsCurrent conversion costs$ 172,500$ 633,332Electric Automotive Group calculates separate costs of spoilage by computing both normal and abnormal spoiled units. Normal spoilage costs are reallocated to good units and abnormal spoilage costscharged as a loss. The units of the Atomic 8 that are spoiled are the result of defects not discovered before inspection of finished units. Using the weighted-average method, answer the following questiWhat are the total conversion costs transferred to finished goods?Multiple Choice$725,880.ОО$779,790.$845,410.$834,070.

To determine the total conversion costs transferred to finished goods for Electric Automotive…

Answered: 5 Electric Automotive Group is a maker…

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter5: Process Costing

Section: Chapter Questions

Problem 3PB: Vexar manufactures nails. Manufacturing is a one-step process where the nails are forged. This is...

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Kenkel, Ltd. uses backflush costing to account for its manufacturing costs. The trigger points are the purchase of materials, the completion of goods, and the sale of goods. Prepare journal entries to account for the following: a. Purchased raw materials, on account, 80,000. b. Requisitioned raw materials to production, 80,000. c. Distributed direct labor costs, 10,000. d. Factory overhead costs incurred, 60,000. (Use Various Credits for the account in the credit part of the entry.) e. Completed all of the production started. f. Sold the completed production for 225,000, on account.
Davis Co. uses backflush costing to account for its manufacturing costs. The trigger points are the purchase of materials, the completion of goods, and the sale of goods. Prepare journal entries to account for the following: a. Purchased raw materials, on account, 70,000. b. Requisitioned raw materials to production, 70,000. c. Distributed direct labor costs, 15,000. d. Factory overhead costs incurred, 45,000. (Use Various Credits for the account in the credit part of the entry.) e. Completed all of the production started. f. Sold the completed production for 195,000, on account. (Hint: Use a single account for raw materials and work in process.)
K-Briggs Company uses the FIFO method to account for the costs of production. For Crushing, the first processing department, the following equivalent units schedule has been prepared: The cost per equivalent unit for the period was as follows: The cost of beginning work in process was direct materials, 40,000; conversion costs, 30,000. Required: 1. Determine the cost of ending work in process and the cost of goods transferred out. 2. Prepare a physical flow schedule.
Proteger Company manufactures insect repellant lotion. The Mixing Department, the first process department, mixes the chemicals required for the repellant. The following data are for the current year: Direct materials are added at the beginning of the process. Ending inventory is 95 percent complete with respect to direct labor and overhead. The cost of goods transferred out for the year is: a. 4,471,200 b. 3,571,200 c. 3,780,000 d. 3,024,000
The Converting Department of Tender Soft Tissue Company uses the weighted average method and had 1,900 units in work in process that were 60% complete at the beginning of the period. During the period, 15,800 units were completed and transferred to the Packing Department. There were 1,200 units in process that were 30% complete at the end of the period. a. Determine the number of whole units to be accounted for and to be assigned costs for the period. b. Determine the number of equivalent units of production for the period. Assume that direct materials are placed in process during production.
AAZU is considering various costs under process costing system. AAZU uses a process-costing system, adds material at the beginning of production and incurs conversion cost evenly throughout manufacturing. The following selected information was taken from the company's accounting records:Total equivalent units of materials: 5,000Total equivalent units of conversion: 4,400Units started and completed during the period: 3,500On the basis of this information, the ending work-in-process inventory's stage of completion is: a. 40%. b. 60%. c. 70%. d. 80%. e. some other percentage not listed above.
Molding Inc. manufactures plastic moldings for car seats. Its costing system uses two cost categories , direct materials and conversion costs. Direct materials are added at the beginning of production. Conversion costs are allocated evenly throughout production. Molding Inc. uses the WEIGHTED-AVERAGE PROCESS COSTING METHOD. Work in process, beginning inventory, 40% complete 200 units Units started during February 600 units Work in process, ending inventory, 30% complete 100 units Cost data: Work in process, beginning inventory: direct materials $ 100,000 Work in process, beginning inventory: conversion costs 100,000 Direct materials costs added during February 1,000,000…
Electric Automotive Group is a maker of engines for high performance cars and uses a process costing system. The following information pertains to the final department of manufacturing for Electric's most popular engine, the "Atomic 8". Beginning work-in-process (40% completed) 400 Transferred-in 1,600 100 100 1,400 400 Normal spoilage Abnormal spoilage Good units transferred out Ending work-in-process (25% completed) Conversion costs in beginning inventory Current conversion costs A) $60,518 B) $53,454 C) $64,908 $180,500 $728,218 Electric Automotive Group calculates separate costs of spoilage by computing both normal and abnormal spoiled units. Normal spoilage costs are reallocated to good units and abnormal spoilage costs are charged as a loss. The units of the Atomic 8 that are spoiled are the result of defects not discovered before inspection of finished units. Using the weighted-average method, answer the following question: D) $58,314 units units What are the total conversion…
KETT Ltd uses process costing for its main product, Fitez. You are provided with the following data for its assembly division: Physical units (Fitez) Direct materials Conversion costs Beginning work in process (October) 100 $1,000 $400 Started in October 2020 1,100 Completed during October 2020 1,000 Ending work in process (October 2020) 200 Costs added during October 2020 $22,470 $12,000 Degree of completion of beginning work in process: direct material: 50%; conversion costs: 40% Degree of completion of ending work in process: direct material: 60%; conversion costs: 20% KETT uses the First In First Out (FIFO) method of process costing for this division. Q17: The total equivalent units for conversion costs are: 1,000 units 1,070 units 1,150 units 1,200 units 1.100 units
Hanrahan Company uses process costing to account for the costs of its only product, X. On December 31, the inventory for Product X was as follows: Work in Process, Beginning Started and In Process Transferred out Work in process-Ending 800 units (3/4 complete as to conversion costs) 1,200 units 1,500 units 500 units (3/4 complete as to conversion costs) Materials are added at the beginning of the process. Beginning Cost: Materials Conversion Costs Current Cost: Materials Conversion Costs Required: P80,000 P30,000 P150,000 P75,000 1. Compute the equivalent units of materials and conversion costs using the FIFO Method. 2. Compute the equivalent units of materials and conversion costs using the Average Method. 3. Determine the total cost of ending work in process under FIFO Method. (Note: Always use two decimal places, if any).
Molding Inc. manufactures plastic moldings for car seats. Its costing system uses two cost categories , direct materials and conversion costs. Direct materials are added at the beginning of production. Conversion costs are allocated evenly throughout production. Molding Inc. uses the WEIGHTED-AVERAGE PROCESS COSTING METHOD. Work in process, beginning inventory, 40% complete 200 units Units started during February 600 units Work in process, ending inventory, 30% complete 100 units What are the equivalent units of direct materials and conversion costs, respectively, at the end of February. (show calculations) DM equivalent units:_________…
New Image Sports uses a process-costing system. For March, the company had the following activities. Beginning work-in-process inventory (one third complete) 6,000 units Units placed in production 24,000 units Good units completed 18,000 units Ending work-in-process inventory 10,000 units Cost of beginning work-in-process $ 5,000 Direct material costs, current $18,000 Conversion costs, current $13,800Direct materials are placed into production at the beginning of the process. All spoilage is normal and is detected at the end of the process. Ending WIP is 50% completed as to conversion. Required: Prepare a production cost worksheet using the FIFO method.

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