Principles of Cost Accounting
17th Edition
ISBN: 9781305087408
Author: Edward J. Vanderbeck, Maria R. Mitchell
Publisher: Cengage Learning
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Textbook Question
Chapter 6, Problem 15E
Making a
Petrone Metals manufactures tin. During the process, a by-product—scrap metal—is obtained and placed in stock. The estimated sales value of the scrap metal produced during April is $2,000. Assume that the value of the by-product is treated as a reduction in production cost.
Make the journal entry for April to record the following:
- a. Placing of the scrap metal in stock
- b. Sale of one-half of the scrap metal for $850, on account
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A company makes production by using Y raw material. The movements of this Y material within the
month of April are as follows: (a) April 1, Beginning balance, amount: 8.000 kg, unit price: 20 TL/kg,
(b) April 5, Purchase, amount: 12.000 kg, unit price: 25 TL/kg, (c) April 10, Consumption, amount:
10.000 kg, (d) April 15, Purchase, amount: 5.000 kg, unit price: 26 TL/kg, (e) April 20, Consumption,
amount: 12.000 kg, (f) April 25, Purchase, amount: 15.000 kg, unit price: 22,20 TL/kg, (g) April 30,
Consumption, amount: 8.000 kg.
Apply the weighted average method now. What would be the ending raw material balance
at the end of April?
What would be the appropriate journal entry for the TOTAL cost of consumption at the end of April if
the company employs LIFO?
Debit 701.000 TL Direct Material Cost, Credit 701.000 TL Raw Material
Debit 215.400 TL Direct Material Cost, Credit 215.400 TL Raw Material
Debit 698.000 TL Direct Material Cost, Credit 698.000 TL Raw Material
Debit 707.600 TL Direct…
A company makes production by using Y raw material. The movements of this Y material
within the month of April are as follows: (a) April 1, Beginning balance, amount: 8.000 kg,
unit price: 20 TL/kg, (b) April 5, Purchase, amount: 12.000 kg, unit price: 25 TL/kg, (c) April
10, Consumption, amount: 10.000 kg, (d) April 15, Purchase, amount: 5.000 kg, unit price:
26 TL/kg, (e) April 20, Consumption, amount: 12.000 kg, (f) April 25, Purchase, amount:
15.000 kg, unit price: 22,20 TL/kg, (g) April 30, Consumption, amount: 8.000 kg. What
would be the appropriate journal entry for the TOTAL cost of consumption at the end of
April if the company employs LIFO?
Debit 701.000 TL Direct Material Cost, Credit 701.000 TL Raw Material
Debit 215.400 TL Direct Material Cost, Credit 215.400 TL Raw Material
Debit 698.000 TL Direct Material Cost, Credit 698.000 TL Raw Material
Debit 707.600 TL Direct Material Cost, Credit 707.600 TL Raw Material
A company makes production by using Y raw material. The movements of this Y material
within the month of April are as follows: (a) April 1, Beginning balance, amount: 8.000 kg,
unit price: 20 TL/kg, (b) April 5, Purchase, amount: 12.000 kg, unit price: 25 TL/kg, (c) April
10, Consumption, amount: 10.000 kg, (d) April 15, Purchase, amount: 5.000 kg, unit price:
26 TL/kg, (e) April 20, Consumption, amount: 12.000 kg, (f) April 25, Purchase, amount:
15.000 kg, unit price: 22,20 TL/kg, (g) April 30, Consumption, amount: 8.000 kg. Suppose
that on April 12, the company sends back 3.000 kg of Y raw material to the supplier due to
low standards and on April 18, 2.000 kg of the Y raw materials was returned (iade) from the
production department due to damage. Now what would be the cost of consumption at the
end of the month if the company uses FIFO?
Chapter 6 Solutions
Principles of Cost Accounting
Ch. 6 - Under what conditions may the unit costs of...Ch. 6 - When is it necessary to use separate equivalent...Ch. 6 - Why is it usually reasonable to assume that labor...Ch. 6 - If materials are not put into process uniformly,...Ch. 6 - In what way do the cost of production summaries in...Ch. 6 - Why might the total number of units completed...Ch. 6 - What is the usual method of handling the cost of...Ch. 6 - If some units are normally lost during the...Ch. 6 - How is the cost of units normally lost reflected...Ch. 6 - Prob. 10Q
Ch. 6 - What adjustment must be made if materials added in...Ch. 6 - What is the difference between the unit costs are...Ch. 6 - What advantage does the FIFO cost method have over...Ch. 6 - How would you define each of the following? a....Ch. 6 - What are three methods of allocating joint costs?
Ch. 6 - Prob. 16QCh. 6 - Prob. 17QCh. 6 - Using the data given for Cases 13 below, and...Ch. 6 - Precision Inc. manufactures wristwatches on an...Ch. 6 - The following data appeared in the accounting...Ch. 6 - Conte Chemical Co. uses the weighted average cost...Ch. 6 - Assuming that all materials are added at the...Ch. 6 - Foamy Inc. manufactures shaving cream and uses the...Ch. 6 - Calculating unit costs; units lost in production...Ch. 6 - Sonoma Products Inc. manufactures a liquid product...Ch. 6 - A company manufactures a liquid product called...Ch. 6 - Using the data given for Cases 1–3 and the FIFO...Ch. 6 - Assume each of the following conditions concerning...Ch. 6 - Adirondack Bat Co. processes rough timber to...Ch. 6 - Computing joint costssales value at split-off and...Ch. 6 - LeMoyne Manufacturing Inc.’s joint cost of...Ch. 6 - Making a journal entryby-product Petrone Metals...Ch. 6 - Espana Co. makes one main product, Uno, and a...Ch. 6 - Manufacturing data for January and February in the...Ch. 6 - Manufacturing data for June and July in the...Ch. 6 - On December 1, Carmel Valley Production Inc. had a...Ch. 6 - Akron Manufacturing Co. manufactures a...Ch. 6 - Green Products Inc. cans peas and uses the...Ch. 6 - Monterrey Products Co. uses the process cost...Ch. 6 - Prob. 7PCh. 6 - Daytona Beverages Inc. uses the FIFO cost method...Ch. 6 - Clearwater Candy Co. had a cost per equivalent...Ch. 6 - Mt. Palomar Manufacturing Co. uses a process cost...Ch. 6 - Otto Inc. specializes in chicken farming. Chickens...Ch. 6 - Otto Inc. specializes in chicken farming. Chickens...Ch. 6 - Venezuela Oil Inc. transports crude oil to its...Ch. 6 - Clark Kent Inc. buys crypton for $.80 a gallon. At...
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