Please don't attach image Veromora Manufactures sand products in its forming department. Veromora operate a processcosting system. All direct materials are added at the beginning of the process, and conversioncosts are added evenly during the process.Total overhead for the period was 2,707,250. A further analysis of overhead was provided asfallowMachine setupMaterial HandlingProcurementDeliveriesThe organization provided the fallowing activitiesNo of setupMovement of materialMachine setupMaterial HandlingProcurementDeliveriesNo of ordersNo of deliveriesMaterials addedCompleted during the monthNormal loss 8% of inputDirect MaterialsTZSProduct Z2841The management accountant of Veromora has provided you with the following summary datafor December regarding to Product z.UnitsTotal costs1,360,000Scrap value of the normal loss is TZS 55 per unit.There is no opening or closing stock of work-in-progress in December.Required: Prepare for the month of December:The process account;(1)(ii)The normal loss (scrap) account;(iii)The abnormal loss/abnormal gain account.LabourTZS% of overhead34.5221%19.481%13.5285%32.4684%1,284,000Product X6412OverheadsTZS10,0009,000

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Description: Please don't attach image Veromora Manufactures sand products in its forming department. Veromora operate a processcosting system. All direct materials are added at the beginning of the process, and conversioncosts are added evenly during the process

Process costing is one of the costing techniques used for accounting purposes for calculating,…

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Veromora Manufactures sand products in its forming department. Veromora operate a process costing system. All direct materials are added at the beginning of the process, and conversion costs are added evenly during the process. Total overhead for the period was 2,707,250. A further analysis of overhead was provided as fallow Machine setup Material Handling Procurement Deliveries The organization provided the fallowing activities No of setup Movement of material No of orders No of deliveries Machine setup Material Handling Procurement Deliveries Units Direct Materials TZS Materials added Completed during the month Normal loss 8% of input Total costs 1,360,000 Scrap value of the normal loss is TZS 55 per unit. There is no opening or closing stock of work-in- progress in December. Required: Prepare for the month of December: (i) (ii) (iii) Product Z 2 The process account; The normal loss (scrap) account; The abnormal loss/abnormal gain account. Labour TZS 784 The management accountant of Veromora has provided you with the following summary data for December regarding to Product z. 1,284,000 8 4 1 % of overhead 34.5221% 19.481% 13.5285% 32.4684% Product X 6 4 1 2 Overheads TZS 10,000 9,000

Veromora Manufactures sand products in its forming department. Veromora operate a process costing system. All direct materials are added at the beginning of the process, and conversion costs are added evenly during the process. Total overhead for the period was 2,707,250. A further analysis of overhead was provided as fallow Machine setup Material Handling Procurement Deliveries The organization provided the fallowing activities No of setup Movement of material No of orders No of deliveries Machine setup Material Handling Procurement Deliveries Units Direct Materials TZS Materials added Completed during the month Normal loss 8% of input Total costs 1,360,000 Scrap value of the normal loss is TZS 55 per unit. There is no opening or closing stock of work-in- progress in December. Required: Prepare for the month of December: (i) (ii) (iii) Product Z 2 The process account; The normal loss (scrap) account; The abnormal loss/abnormal gain account. Labour TZS 784 The management accountant of Veromora has provided you with the following summary data for December regarding to Product z. 1,284,000 8 4 1 % of overhead 34.5221% 19.481% 13.5285% 32.4684% Product X 6 4 1 2 Overheads TZS 10,000 9,000

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter6: Process Costing

Section: Chapter Questions

Problem 14E: Lacy, Inc., produces a subassembly used in the production of hydraulic cylinders. The subassemblies...

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Reducir, Inc., produces two different types of hydraulic cylinders. Reducir produces a major subassembly for the cylinders in the Cutting and Welding Department. Other parts and the subassembly are then assembled in the Assembly Department. The activities, expected costs, and drivers associated with these two manufacturing processes are given below. Note: In the assembly process, the materials-handling activity is a function of product characteristics rather than batch activity. Other overhead activities, their costs, and drivers are listed below. Other production information concerning the two hydraulic cylinders is also provided: Required: 1. Using a plantwide rate based on machine hours, calculate the total overhead cost assigned to each product and the unit overhead cost. 2. Using activity rates, calculate the total overhead cost assigned to each product and the unit overhead cost. Comment on the accuracy of the plantwide rate. 3. Calculate the global consumption ratios. 4. Calculate the consumption ratios for welding and materials handling (Assembly) and show that two drivers, welding hours and number of parts, can be used to achieve the same ABC product costs calculated in Requirement 2. Explain the value of this simplification. 5. Calculate the consumption ratios for inspection and engineering, and show that the drivers for these two activities also duplicate the ABC product costs calculated in Requirement 2.
Primera Company produces two products and uses a predetermined overhead rate to apply overhead. Primera currently applies overhead using a plantwide rate based on direct labor hours. Consideration is being given to the use of departmental overhead rates where overhead would be applied on the basis of direct labor hours in Department 1 and on the basis of machine hours in Department 2. At the beginning of the year, the following estimates are provided: Actual results reported by department and product during the year are as follows: Required: 1. Compute the plantwide predetermined overhead rate and calculate the overhead assigned to each product. 2. Calculate the predetermined departmental overhead rates and calculate the overhead assigned to each product. 3. Using departmental rates, compute the applied overhead for the year. What is the under- or overapplied overhead for the firm? 4. Prepare the journal entry that disposes of the overhead variance calculated in Requirement 3, assuming it is not material in amount. What additional information would you need if the variance is material to make the appropriate journal entry?
The charges to Work in ProcessAssembly Department for a period, together with information concerning production, are as follows. All direct materials are placed in process at the beginning of production. Determine the following: a. The number of units in work in process inventory at the end of the period b. Equivalent units of production for direct materials and conversion c. Costs per equivalent unit for direct materials and conversion d. Cost of the units started and completed during the period
Heap Company manufactures a product that passes through two processes: Fabrication and Assembly. The following information was obtained for the Fabrication Department for September: a. All materials are added at the beginning of the process. b. Beginning work in process had 80,000 units, 30 percent complete with respect to conversion costs. c. Ending work in process had 17,000 units, 25 percent complete with respect to conversion costs. d. Started in process, 95,000 units. Required: 1. Prepare a physical flow schedule. 2. Compute equivalent units using the weighted average method. 3. Compute equivalent units using the FIFO method.
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Lansing. Inc., provided the following data for its two producing departments: Machine hours are used to assign the overhead of the Molding Department, and direct labor hours are used to assign the overhead of the Polishing Department. There are 30,000 units of Form A produced and sold and 50,000 of Form B. Required: 1. Calculate the overhead rates for each department. 2. Using departmental rates, assign overhead to live two products and calculate the overhead cost per unit. How does this compare with the plantwide rate unit cost, using direct labor hours? 3. What if the machine hours in Molding were 1,200 for Form A and 3,800 for Form B and the direct labor hours used in Polishing were 5,000 and 15,000, respectively? Calculate the overhead cost per unit for each product using departmental rates, and compare with the plantwide rate unit costs calculated in Requirement 2. What can you conclude from this outcome?
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WP Manufactures a machine tool that goes through three processing departments- Cutting, fixing and polishing. Raw materials are introduced at the start of the work in the cutting department itself. The Work-in-process T-account is as follows: Work-in-Process - Cutting Department Inventory, May 1 $273,600 Completed and transferred |to the Mixing department ? Materials Conversion |Inventory, May 3| $522,800 $343,104 ? The May 1 work in process inventory consisted of 95,000 pounds with $155,800 in materials cost and $117,800 in conversion cost. The May 1 work in process inventory was 100% complete with respect to materials and 80% complete with respect to conversion. During May, 282,000 pounds were started into production. The May 31 inventory consisted of 127,000 pounds that were 100% complete with respect to materials and 70% complete with respect to conversion. The company uses the weighted-average method to account for units and costs. Determine the equivalent units of production for…