The Kawilihan Manufacturing Inc. uses a process cost accounting system. The production data for the month of May show the following: Physical Units In process, May 1 Stage of completion Received from preceding department In process, May 31 Dept. 2 Stage of completion 8,000 1/4 Finished and transferred to next dept. ? 42,000 5,000 75% Dept. 3 4,000 3/4 ? ? 1,000 40% In Dept. 2, materials are applied as follows: 40% at the start of the process; 20% when the process reaches midpoint; and the balance at the end of the process. In Dept. 3, 25% of the materials is applied at the start of the process; 45% when the process reaches 3/4 completion; and the balance at the end. Both departments apply conversion costs uniformly throughout the process.
The Kawilihan Manufacturing Inc. uses a process cost accounting system. The production data for the month of May show the following: Physical Units In process, May 1 Stage of completion Received from preceding department In process, May 31 Dept. 2 Stage of completion 8,000 1/4 Finished and transferred to next dept. ? 42,000 5,000 75% Dept. 3 4,000 3/4 ? ? 1,000 40% In Dept. 2, materials are applied as follows: 40% at the start of the process; 20% when the process reaches midpoint; and the balance at the end of the process. In Dept. 3, 25% of the materials is applied at the start of the process; 45% when the process reaches 3/4 completion; and the balance at the end. Both departments apply conversion costs uniformly throughout the process.
Principles of Cost Accounting
17th Edition
ISBN:9781305087408
Author:Edward J. Vanderbeck, Maria R. Mitchell
Publisher:Edward J. Vanderbeck, Maria R. Mitchell
Chapter5: Process Cost Accounting—general Procedures
Section: Chapter Questions
Problem 10P: Aero Aluminum Inc. uses a process cost system. The records for May show the following information:...
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