FIFO Method, Two-Department AnalysisMuskoge 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 the beginning of the process; in the Assembly Department, additional direct materials are added at the end of the process. In both departments, conversion costs are incurred uniformly throughout the process. As work is completed, it is transferred out. The following table summarizes the production activity and costs for February: Molding AssemblyBeginning inventories: Physical units 10,000 8,000 Costs: Transferred in — $45,300 Direct materials $22,000 — Conversion costs $13,800 $16,900 Current production: Units started 25,000 ? Units transferred out 30,000 35,000 Costs: Transferred in — ? Direct materials $56,250 $40,250 Conversion costs $103,500 $143,000 Percentage of completion: Beginning inventory 40% 50% Ending inventory 80 50 Required: 3. Repeat Requirements 1 and 2 for the Assembly Department.a. A physical flow scheduleMuskoge CompanyAssembly DepartmentPhysical Flow ScheduleUnits to account for:Total units to account forUnits accounted for:Units completed and transferred out:Total units accounted forb. An equivalent units calculationTotal Equivalent UnitsDirect MaterialsConversion CostsTransferred Inc. Calculation of unit costs. If required, round your intermediate computations and final answer to four decimal places and usethe rounded answer in subsequent computations.per unit

PRODUCTION COST REPORT- A REPORT WHICH GIVES INFORMATION ABOUT THE TOTAL UNITS PRODUCED AND TOTAL…

ing system. The company manufactures a product that is processed in two departments: Molding and Assembly. In the Molding Department, direct materials are added at the beginning of the process; in the Assembly Department, additional direct materials are added at the end of the process. In both departments, conversion costs are incurre

ing system. The company manufactures a product that is processed in two departments: Molding and Assembly. In the Molding Department, direct materials are added at the beginning of the process; in the Assembly Department, additional direct materials are added at the end of the process. In both departments, conversion costs are incurre

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter5: Process Costing

Section: Chapter Questions

Problem 15MC: Which of the following is the step in which materials, labor, and overhead are detailed? A....

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Which of the following is the step in which materials, labor, and overhead are detailed? A. determining the units to which costs are assigned B. determining the equivalent units of production C. determining the cost per equivalent units D. allocating the costs to the units transferred out and the units partially completed
The four steps necessary to complete a cost of production report in a process cost system are 1. allocate costs to units transferred out and partially completed units 2. determine the units to be assigned costs 3. determine the cost per equivalent unit 4. compute equivalent units of production The correct ordering of the steps is Oa. 2,4, 3, 1 ОБ. 2,3, 1, 4 Oc. 2,3, 4, 1 Od. 4,2, 3, 1
A production cost report Is an accounting report that describes the physical flow of units, equvalent units of production for direct materials and converslon, costs pet e nt urit of production for direct materials and for conversion, and the assignment of total costs to units worked on in the perlod. True or False True False Next 18 of 25 < Prev
Q.For each cost category, compute equivalent units in the assembly department. Show physical units in the first column of your schedule.
1. Using the weighted average method, prepare the following for Department A: (a) aphysical flow schedule, (b) an equivalent unit calculation, (c) calculation of unit costs(Note: Round to four decimal places.), (d) cost of EWIP and cost of goods transferredout, and (e) a cost reconciliation.2. Prepare journal entries that show the flow of manufacturing costs for Department A. Usea conversion cost control account for conversion costs. Many firms are now combiningdirect labour and overhead costs into one category. They are not tracking direct labourseparately. Offer some reasons for this practice.
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 in the forming department are transferred to the painting department. Beginning work in process inventory Units started this period Completed and transferred out Ending work in process inventory Production cost information for the forming department follows. Beginning work in process Direct materials Units 34,500 490,000 494,500 30,000 Conversion Costs added this period Direct materials Conversion Total costs to account for $ 56,200 22,900 1,800, 200 1, 179,000 Direct Materials Percent Complete 80% 85% $79,100 2,979,200 $ 3,058, 300 Conversion Percent Complete 20% 35%
Compute for the unit cost transferred to the next department using FIFO
Which of the following is a batch-related cost driver?a. number of machine hoursb. number of setupsc. number of engineering changesd. number of direct labor hour
Please answer all the questions 1-4 1.The third step in preparing a cost of production report is a.determining the cost per equivalent unit of production. b.computing the equivalent units of production. c.determining the units to be assigned costs. d.allocating costs to units transferred out. 2. Equivalent units of production are the a.number of units in production during a period, whether completed or not. b.portion of whole units that are complete with respect to materials or selling costs. c.portion of whole units that are complete with respect to factory overhead costs. d.portion of whole units that are complete with respect to materials or conversion costs. 3. The cost of energy consumed in producing good units in the Steaming Department of Apple Processing Company was $8,600 and $8,820 for June and July, respectively. The number of equivalent units produced in June and July was 65,000 and 72,000 liters, respectively. What is the cost of energy for the two months (rounded…
Problem No. 2(Cost Accounting) Determine the following using the First-In First-Out (FIFO) method of process costing 1. Equivalent units of production for materials and conversion cost 2. unit costs, and; 3. Inventory values
Compute equivalent units of production for both direct materials and conversion. For the first two columns above "total units" the options are: beginnings work in process - units, completed and transferred out, ending work in process, total units accounted for, units started this period. for the rest of the empty spaces, you use numbers
a. Prepare a production report for the department using the Weighted Average methodand write the resulting journal entry to transfer theinventory to the next department. b. If the company had used the FIFO method, what would the cost per unit have been forMaterials and for Conversion?

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	Molding	Assembly
Beginning inventories:
Physical units	10,000	8,000
Costs:
Transferred in	—	$45,300
Direct materials	$22,000	—
Conversion costs	$13,800	$16,900
Current production:
Units started	25,000	?
Units transferred out	30,000	35,000
Costs:
Transferred in	—	?
Direct materials	$56,250	$40,250
Conversion costs	$103,500	$143,000
Percentage of completion:
Beginning inventory	40%	50%
Ending inventory	80	50