Reyes Company produces a product that undergoes three processes and the completed items at end of process 3 are the items to be sold to customers. For November 2021, Reyes Company presented the following costs on three processes: Costs incurred: Materials Direct Labor Overhead Materials are added at: Process 1 Process 2 Process 3 45,000 38,000 32,895 39,000 28,275 29,240 31,200 22,620 23,392 100% at the 50% at beginning, 40% at beginning, 30% at beginning 50% at 60% complete 50% complete, and remaining 30% at 80% complete. Started/Transferred In 20,000 units ? Completed and transferred out In Process, end 19,000 units 18,500 units 18,000 units 1,000 units 50% complete complete 500 units 70% 250 units 40% complete, 250 units 70% complete

Reyes Company produces a product that undergoes three processes and the completed items at end of process 3 are the items to be sold to customers. For November 2021, Reyes Company presented the following costs on three processes: Costs incurred: Materials Direct Labor Overhead Materials are added at: Process 1 Process 2 Process 3 45,000 38,000 32,895 39,000 28,275 29,240 31,200 22,620 23,392 100% at the 50% at beginning, 40% at beginning, 30% at beginning 50% at 60% complete 50% complete, and remaining 30% at 80% complete. Started/Transferred In 20,000 units ? Completed and transferred out In Process, end 19,000 units 18,500 units 18,000 units 1,000 units 50% complete complete 500 units 70% 250 units 40% complete, 250 units 70% complete

Principles of Cost Accounting

17th Edition

ISBN:9781305087408

Author:Edward J. Vanderbeck, Maria R. Mitchell

Publisher:Edward J. Vanderbeck, Maria R. Mitchell

Chapter2: Accounting For Materials

Section: Chapter Questions

Problem 18E: For E2-17, prepare any journal entries that would have been different if the only trigger points had...

See similar textbooks

Similar questions

The following product costs are available for Kellee Company on the production of eyeglass frames: direct materials, $32,125; direct labor, $23.50; manufacturing overhead, applied at 225% of direct labor cost; selling expenses, $22,225; and administrative expenses, $31,125. The direct labor hours worked for the month are 3,200 hours. A. What are the prime costs? B. What are the conversion costs? C. What is the total product cost? D. What is the total period cost? E. If 6.425 equivalent units are produced, what is the equivalent material cost per unit? F. What is the equivalent conversion cost per unit?
In using FIFO method, Richer Company produces a product that undergoes three processes and the completed items at end of process 3 are the items to be sold to customers. For December 2021, Richer Company presented the following costs on three processes: *see image attached* 1. What is the amount of cost of goods manufactured? a. P226,926.61 b. P234,541.61 c. P240,072.00 d. None of the above 2. What is the total units to account for (TUTAF) in Department 1? a. 16,000 b. 15,100 c. 15,000 d. 15,700
A company processes raw material into Products R, B, T and D. Products R, B and T are joint products and D is classified as a by-product. In process 1, 50 000 kg of material will be processed at a cost of R220 600 worth of material, R40 500 labour and R24 500 overheads. After the basic processing in process 1, thirty percent of the input is transferred to process B. In Process B additional costs of R25 400 are incurred and product B (from process B) can then be sold for R28 per kg. They transfer 60% of the original material input (from process 1) to process 2 and then the remainder to Process D. The products in process D are considered a by-product (By-product D) and have a sales price of R6 per kilogram. The cost involved with the selling of the by-product is R7 000 in total. The business account for this by crediting the net market value of by-products produced to the general production costs. In process 2 the materials processed further at a cost of R21 200. They then…
Manufacturing Company produces special kitchen utensils using the JIT system. Transactions for the current period are as follow:a. Raw materials purchased, P1,950,000b. Direct labor costs of P2,500,000 were incurred.c. Actual overhead costs of P3,500,000 were incurred.d. Conversion costs are directly charged to cost of sales.e. Finished goods, end amounted to P420,000 of which P200,000 is materials.f. Finished goods, beg amounted to P600,000 of which P350,000 is materialsg. RIPI, beginning P850,000, of which materials is P600,000.h. RIPI, ending P750,000, of which materials is P500,000.The cost of sales for the period amounted to:a. P8,230,000 b. P8,200,000 c. P8,130,000 d. P8,000,000
Abagail Corp. uses activity-based costing system with three activity cost pools. The following information is provided: Costs: Wages and salaries $ 203,000 Depreciation 111,000 Utilities 114,000 Activity Cost Pools Assembly Setting Up Other Wages and salaries 0.57 30% 10% Depreciation 0.36 45% 20% Utilities 0.29 40% 30% How much total cost would be allocated to the Assembly activity cost pool?
Concord Company manufactures two products, Mini A and Maxi B. Concord's overhead costs consist of setting up machines- $860000; machining- $2020000; and inspecting- $570000. Information on the two products is: Direct labour hours Machine setups Machine hours Inspections Mini A Maxi B $1324000. $1660400. $1690400. O $2542105. 10000 600 24000 800 28000 400 26000 700 Overhead applied to Maxi B using activity-based costing is
Agua Corporation applies the just-in-time philosophy in its materials procurement and production systems. It uses Raw and in Process account to keep track of its materials and backflushed materials at the date goods are completed. The following selected transactions occurred in one of its products in the month of January 2020: Raw materials purchases, Direct materials 12,000 lbs. @ P10, P126,000. P4,400 Indirect materials Production costs with 3,000 units Other conversion costs Beginning and ending balances: P62,000 RIP FG Beginning balances Direct Materials Conversion costs 2,000 900 2,900 (1,500) (600) 2,100 3,100 1,200 4,300 (1,500) (2,200) 3,700 Total Ending balances Direct Materials Conversion costs Total Using the company's backflush accounting system, how much is the direct materials used to be backflushed?
XYZ Motors Corporation has identified activity centers to which overhead costs are assigned. The cost pool amounts for these centers and their selected cost drivers for 2018 are as follows: Activity Center - Utilities: Cost - P600,000 Cost Driver - 30,000 machine hours Activity Center - Scheduling sand setups Cost - P546,000 Cost Driver - 390 setups Activity Center - Material handling Cost - P1,280,000 Cost Driver - 800,000 kilos of materials The company's products and other operating statistics are as follows: Product A: Direct costs - P40,000 Machine hours - 15,000 Number of setups - 65 Kilos of material - 250,000 Number of units produced - 20,000 Direct labor hours - 16,000 Product B: Direct costs - P40,000 Machine hours - 5,000 Number of setups - 190 Kilos of material - 150,000 Number of units produced - 10,000 Direct labor hours - 9,000 Product C: Direct costs - P45,000 Machine hours - 10,000 Number of setups - 135 Kilos of material - 400,000 Number of units produced -…
Hepworth Company has implimented a JIT system and is considering the use of backflush costing. Hepworth had the following transcations for the current fiscal year 1.Purchased raw materials on account for $600,000 2.Placed all materials recieved into production 3. Incurrec actual direct labor costs of $90,000 4. Incurred actual overhead costs of $625,000 5.Applied conversion costs of $675,000 6. Completed all work for the month 7.Sold all completed work 8.Computed the difference between actual and applied costs. Required: 1.Prepare the journal entries for traditional and backflush costing, For backflush costing, assume there are two trigger point (1) The purchase of raw materials and (2) The completion of the goods 3.What if there is only one trigger poin and its is (a) completion of the goods or b) sale of the goods? How would the backflush-costing journal entries differ from requirement 1 for (a) and (b)?
Ole Company manufactures two products, Product A and Product B. Currently, machine hours are used to allocate the overhead costs to the two products. Ole Company is considering adopting an activity-based costing system. If so, overhead costs will be traced to the following activities: Activities Machining Quality Control Material Moves Activity cost pools $300,000 $200,000 $400,000 Cost Drivers Machine Hours Number of inspections Number of moves Product A 30,000 400 2,000 Product B 20,000 600 6,000 (a) Calculate the total overhead cost assigned to Product A under the current system. (b) Calculate the total overhead cost for Product A if the company implements activity-based costing system. (c) Briefly explain which costing method gives a more accurate picture of the costs. (d) Suppose you are the management accountant in a university. List any three (3)activities commonly carried out in universities and identify an appropriate cost driver for each activity.
Lily Company manufactures two products, Board 12 and Case 165. Lily's overhead costs consist of setting up machines, $2600000; machining, $5900000; and inspecting. $1890000. Information on the two products and their estimated use of cost drivers is as follows: Direct labor hours Machine setups Machine hours Inspections Board 12 Case 165 15000 26560 O $3750000. O $4990000. O $5600500. O $6234000. 600 24000 800 400 26000 700 Overhead assigned to Board 12 using traditional costing using direct labor hours is
Lion Corporation uses an activity-based costing system to assign overhead costs to products. In the first stage, two overhead costs--equipment depreciation and supervisory expense-are allocated to three activity cost pools--Machining, Order Filling, and Other--based on resource consumption. Data to perform these allocations appear below: Overhead costs: Equipment depreciation Supervisory expense Equipment depreciation Distribution of Resource Consumption Across Activity Cost Pools: Product C9 $ 47,000 Product UO $ 6,000 Total Supervisory expense 0.60 Activity Cost Pools O $18.00 per MH O $5.30 per MH O $2.82 per MH O $3.18 per MH Mac 0.60 In the second stage, Machining costs are assigned to products using machine- hours (MHS) and Order Filling costs are assigned to products using the number of orders. The costs in the Other activity cost pool are not assigned to products. Activity data for the company's two products follow: 6,900 Order Filling 3,100 0.10 MHS (Machining) 10,000 b.20 200…