Wildhorse Corp. manufactures kitchen appliances and gadgets, like coffee makers and can openers. Recently, the company ramped upproduction of its iced coffee brewer, anticipating increasing demand in the market. For the month of April, Wildhorse reported thefollowing activity and cost information for its only production process dedicated to these coffee brewers.Units in beginning WIP InventoryBeginning WIP Inventory degree of completionCosts in beginning WIP InventoryNew units startedCosts added to WIP Inventory this periodUnits completedUnits in ending WIP InventoryEnding WIP Inventory degree of completionUnits80013,50013,400900Plastic100%$3,079Mesh100%100%$306$68,850 $6,9300%Conversion Costs70%$2,329$86,52630% Assuming instead that Wildhorse Corp. uses the weighted-average method of process costing, complete Steps 1 to 5 in thetemplate to determine the cost of units completed in April as well as the cost of units in ending WIP Inventory in April. (Round costper equivalent unit to 2 decimal places, e.g. 15.25 and final answers to O decimal places, e.g. 5,125.)Total cost of units completed$Cost of units in ending WIP Inventory $Account Titles and ExplanationLARecord the journal entry to recognize the cost of units completed and transferred out of the manufacturing process this month.(Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry"for the account titles and enter O for the amounts. List debit entry before credit entry.)DebitCredit

A production cost report is a thorough document that lists all of the expenses incurred during the…

Wildhorse Corp. manufactures kitchen appliances and gadgets, like coffee makers and can openers. Recently, the company ramped up production of its iced coffee brewer, anticipating increasing demand in the market. For the month of April, Wildhorse reported the following activity and cost information for its only production process dedicated to these coffee brewers. Units in beginning WIP Inventory Beginning WIP Inventory degree of completion Costs in beginning WIP Inventory New units started Costs added to WIP Inventory this period Units completed Units in ending WIP Inventory Ending WIP Inventory degree of completion Units 800 13,500 13,400 900 Plastic 100% $3,079 $68,850 100% Mesh 100% $306 $6,930 0% Conversion Costs 70% $2,329 $86,526 30%

Wildhorse Corp. manufactures kitchen appliances and gadgets, like coffee makers and can openers. Recently, the company ramped up production of its iced coffee brewer, anticipating increasing demand in the market. For the month of April, Wildhorse reported the following activity and cost information for its only production process dedicated to these coffee brewers. Units in beginning WIP Inventory Beginning WIP Inventory degree of completion Costs in beginning WIP Inventory New units started Costs added to WIP Inventory this period Units completed Units in ending WIP Inventory Ending WIP Inventory degree of completion Units 800 13,500 13,400 900 Plastic 100% $3,079 $68,850 100% Mesh 100% $306 $6,930 0% Conversion Costs 70% $2,329 $86,526 30%

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter3: Process Cost Systems

Section: Chapter Questions

Problem 1MAD: Dura-Conduit Corporation manufactures plastic conduit that is used in the cable industry. A conduit...

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Ponderosa, Inc., produces wiring harness assemblies used in theproduction of semi-trailer trucks. The wiring harness assemblies aresold to various truck manufacturers around the world. Projected sales inunits for the coming five months are given below. JanuaryFebruaryMarchAprilMay 10,00010,50013.00016,00018,500 The following data pertain to production policies and manufacturingspecifications followed by Ponderosa:a. Finished goods inventory on January 1 is 900 units. The desired ending inventory for each month is 20 percent of the next month'ssales.b. The data on materials used are as follows: Direct Materials Per-Unit Usage Unit Cost Part #K298Part #C30 23 $47 Inventory policy dictates that sufficient materials be on hand at thebeginning of the month to satisfy 30 percent of the next month'sproduction needs. This is exactly the amount of material on hand onJanuary 1.c. The direct labor used per unit of output is one and one-half hours. The average direct labor cost per…
Click the Chart sheet tab. On the screen is a column chart showing ending inventory costs. During a deflationary period, which bar (A, B, or C) represents FIFO costing, which represents LIFO costing, and which represents weighted average? Explain your reasoning. On January 4 following year-end, Rio Enterprises received a shipment of 60 units of product costing 580 each. These units had been ordered by Del in December and had been shipped to him on December 27. They were shipped FOB shipping point. Revise the FIFOLIFO3 worksheet to include this shipment. Preview the printout to make sure that the worksheet will print neatly on one page, and then print the worksheet. Save the completed file as FIFOLIFOT. Using the FIFOLIFO3 file, prepare a 3-D bar (stacked) chart showing the cost of goods sold and ending inventory under each of the four inventory cost flow assumptions. No Chart Data Table is needed. Use the values in the Calculations Section of the worksheet for your chart. Enter your name somewhere on the chart. Save the file again as FIFOLIFO3. Print the chart.
Orman Company produces neon-colored covers for tablets (e.g., iPads). For last year, Orman reported the following: Last year, Orman produced 89,000 units and sold 90,500 units at 10.50 per unit. Required: 1. Prepare a statement of cost of goods manufactured. 2. Prepare an absorption-costing income statement.
Dura-Conduit Corporation manufactures plastic conduit that is used in the cable industry. A conduit is a tube that encircles and protects the underground cable. In the process for making the plastic conduit, called extrusion, the melted plastic (resin) is pressed through a die to form a tube. Scrap is produced in this process. Information from the cost of production reports for three months is as follows, assuming that inventory remains constant: Assume that there is one-half pound of resin per foot of the finished product. a. Determine the resin materials cost per foot of finished product for each month. Round to the nearest whole cent. b. Determine the ratio of the number of resin pounds output in conduit by the number of pounds input into the process for each month. Round percentages to one decimal place. c. Interpret the resin materials cost per foot for the three months. Use the information in (a) and (b) to explain what is happening. d. Determine the conversion cost per foot of finished product for each month and interpret the result.
Sterling Corporation has an EOQ of 5,000 units. The company uses an average of 500 units per day. An order to replenish the part requires a lead time of five days. Required: 1. Calculate the reorder point, using Equation 20.3. 2. Graphically display the reorder point, where the vertical axis is inventory (units) and the horizontal axis is time (days). Show two replenishments, beginning at time zero with the economic order quantity in inventory. 3. What if the average usage per day of the part is 500 units but a daily maximum usage of 575 units is possible? What is the reorder point when this demand uncertainty exists?
Carbata Company manufactures low-cost, basic tool kits in bulk. Below is the latest information for last month's production. Inventory on September 1 % Complete Units Started Costs Added in September Inventory on September 30 % Complete Step 1: Account for all Units Beginning Inventory Units Started Units to Account for Units Ending Inventory Units Completed and Transferred Units to Account for 3,150 950 $ Units 1,200 Materials Cost Conversion Cost 5,550 $ 2,354 60% 950 3,150 4,100 1,200 2,900 1,700 $ Required: Use the information above to complete a Process Costing Production Report under the Weighed Average Assumption. 28,940 $ 80% 30% 8,156 60%
The processing department at Nash Corporation evaluated the costs associated with manufacturing paper towels for the past month. Beginning and newly added costs for May are as follows. Costs in beginning WIP Inventory (from last period) Costs added to WIP Inventory this period Total costs to account for (a) Your answer is partially correct. Beginning Balance Step 3: Account for costs New DM New Conversion Costs V Ending Balance Total costs $2,100 13,160 $15,260 $11,100 Show the T-account for Nash's WIP Inventory reflecting all of the appropriate costs above. WIP Inventory 2100 0 DM 13160 $1,580 15260 9,520 Conversion Costs Beginning Balance New DM New Conversion Costs Ending Balance V $520 3.640 $4,160 13160 0 2100 15260
We discuss how to calculate the number of equivalent units and theequivalent cost per unit, and to reconcile the total cost of Work inProcess Inventory using the first-in, first-out (FIFO) method. You alsounderstood how to prepare the process costing production reportusing the first-in, first-out (FIFO) method. Knowledge Check 02Parker Corporation makes candy bars. One of its processing departmentsreported the following information for August. Beginning work in process costsincluded $50,000 in direct materials and $110,000 in conversion cost. A total of$144,000 of direct materials costs and $210,000 in conversion cost wasincurred during the month. Equivalent units totaled 12,000 for direct materialsand 8,000 for conversion cost. Using the first-in, first-out (FIFO) method,Parker's cost per equivalent unit for conversion during August would be:
(a) Blossom Paints makes various interior and exterior paints for its customers, but its current focus is on its top-selling interior brand. Blossom produces the paint in its mixing department and then transfers the paint to the canning department. The following information is presented for the canning department in March, recognizing that the company adds its conversion costs evenly throughout the process. One unit is one gallon of paint. Units Transferred-In DM Conversion Costs Units in beginning WIP Inventory 1,800 Beginning WIP Inventory degree of completion 100% 100% 60% Costs in beginning WIP Inventory $11,980 $1,940 $1,800 New units started 47,300 Costs added to WIP Inventory this period $383,130 $55,680 $104,258 Units completed 48,200 Units in ending WIP Inventory 900 Ending WIP Inventory degree of completion 100% 0% 30% Complete Steps 1-5 of the template for the canning department of Blossom Paints this year using the FIFO method of process costing, clearly labeling the…
Cetaphil Manufacturing Company uses a Raw and in Process (RIP) inventory account and charged to cost of sales all conversion costs. At the end of each month, all inventories are counted, their conversion costs components are estimated and inventory account balances are adjusted accordingly. backflushed from RIP to Finished goods. The following information is noted for Raw materials is the current month. • Beginning balance of RIP account, including P1,400 conversion costs, P31,200 Raw materials purchased on account, P367,000 Ending RIP inventory including P1,800 conversion cost, P33,000. 12. Give the final entry to adjust the accounts to their correct balances.
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Cortez Company sells chairs that are used at computer stations. Its beginning inventory of chairs was 100 units at $60 per unit. During the year, Cortez made two batch purchases of this chair. The first was a 150-unit purchase at $68 per unit; the second was a 200-unit purchase at $72 per unit. During the period, it sold 270 chairs. Required Determine the amount of product costs that would be allocated to cost of goods sold and ending inventory, assuming that Cortez uses a. FIFO. b. LIFO. c. Weighted average. Cost of goods sold Ending inventory FIFO LIFO Weighted Average