Horngren's Cost Accounting: A Managerial Emphasis (16th Edition)
16th Edition
ISBN: 9780134475585
Author: Srikant M. Datar, Madhav V. Rajan
Publisher: PEARSON
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Textbook Question
Chapter 17, Problem 17.32E
Transferred-in costs, FIFO method. Refer to the information in Exercise 17-31. Suppose that Trendy uses the FIFO method instead of the weighted-average method in all of its departments. The only changes to Exercise 17-31 under the FIFO method are that total transferred-in costs of beginning work in process on June 1 are $45,000 (instead of $60,000) and total transferred-in costs added during June are $114,000 (instead of $117,000).
Required
Do Exercise 17-31 using the FIFO method. Note that you first need to calculate equivalent units of work done in the current period (for transferred-in costs, direct materials, and conversion costs) to complete beginning work in process, to start and complete new units, and to produce ending work in process.
17-31 Transferred-in costs, weighted-average method. Trendy Clothing, Inc. is a manufacturer of winter clothes. It has a knitting department and a finishing department. This exercise focuses on the finishing department. Direct materials are added at the end of the process. Conversion costs are added evenly during the process. Trendy uses the weighted-average method of
- 1. Calculate equivalent units of transferred-in costs, direct materials, and conversion costs.
Required
- 2. Summarize the total costs to account for, and calculate the cost per equivalent unit for transferred-in costs, direct materials, and conversion costs.
- 3. Assign costs to units completed (and transferred out) and to units in ending work in process.
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A department of Delta Company incurred the following costs for the month of June. Variable costs, and the variable portion of mixed
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Activity level in units
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Total costs
During July, the activity level was 9,000 units, and the total costs incurred were $69,000.
Required:
a. Calculate the variable costs, fixed costs, and mixed costs incurred during July.
b. Use the high-low method to calculate the cost formula for mixed cost.
Complete this question by entering your answers in the tabs below.
Required A Required B
4,500
$ 8,100
30,000
20,800
$ 58,900
Calculate the variable costs, fixed costs, and mixed costs incurred during July.
Variable cost
Fixed cost
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A department of Alpha Co. incurred the following costs for the month of September. Variable costs, and the variable portion of mixed costs, are a function of the number of units of activity:
Activity level in units
4,500
Variable costs
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7,875
Fixed costs
29,000
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24,600
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During October, the activity level was 7,600 units, and the total costs incurred were $68,000.Required:a. Calculate the variable costs, fixed costs, and mixed costs incurred during October.
b. Use the high–low method to calculate the cost formula for mixed cost. (Do not round intermediate calculations and round your answers to 2 decimal places.)
[The following information applies to the questions displayed below.]
Adria Company recently implemented an activity-based costing system. At the beginning of the year, management made
the following estimates of cost and activity in the company's five activity cost pools:
Expected
Activity
Overhead
Expected
Activity
6,500 DLHS
2,400 orders
700 receipts
1,400 relays
41,000 MHS
Activity Cost Pool
Labor-related
Measure
Cost
$ 58,500
$ 12,000
$ 11, 200
$ 14,000
$369,000
Direct labor-hours
Purchase orders
Number of orders
Material receipts
Relay assembly
General factory
Number of receipts
Number of relays
Machine-hours
2. The expected activity for the year was distributed among the company's four products as follows:
Expected Activity
Activity Cost Pool
Labor-related (DLHS)
Purchase orders (orders)
Materials receipts (receipts)
Relay assembly (relays)
General factory (MHs)
Product A Product B Product C Product D
2,400
500
2,600
720
700
800
850
330
400
118
182
340
340
280
440
16,250
5,400…
Chapter 17 Solutions
Horngren's Cost Accounting: A Managerial Emphasis (16th Edition)
Ch. 17 - Give three examples of industries that use...Ch. 17 - In process costing, why are costs often divided...Ch. 17 - Explain equivalent units. Why are equivalent-unit...Ch. 17 - What problems might arise in estimating the degree...Ch. 17 - Name the five steps in process costing when...Ch. 17 - Name the three inventory methods commonly...Ch. 17 - Describe the distinctive characteristic of...Ch. 17 - Describe the distinctive characteristic of FIFO...Ch. 17 - Prob. 17.9QCh. 17 - Identify a major advantage of the FIFO method for...
Ch. 17 - Identify the main difference between journal...Ch. 17 - The standard-costing method is particularly...Ch. 17 - Why should the accountant distinguish between...Ch. 17 - Transferred-in costs are those costs incurred in...Ch. 17 - Theres no reason for me to get excited about the...Ch. 17 - Assuming beginning work in process is zero, the...Ch. 17 - The following information concerns Westheimer...Ch. 17 - Sepulveda Corporation uses a process costing...Ch. 17 - Penn Manufacturing Corporation uses a...Ch. 17 - Kimberly Manufacturing uses a process-costing...Ch. 17 - Equivalent units, zero beginning inventory....Ch. 17 - Journal entries (continuation of 17-21). Refer to...Ch. 17 - Zero beginning inventory, materials introduced in...Ch. 17 - Weighted-average method, equivalent units. The...Ch. 17 - Weighted-average method, assigning costs...Ch. 17 - FIFO method, equivalent units. Refer to the...Ch. 17 - FIFO method, assigning costs (continuation of...Ch. 17 - Operation costing. The Carter Furniture Company...Ch. 17 - Weighted-average method, assigning costs....Ch. 17 - FIFO method, assigning costs. 1. Do Exercise 17-29...Ch. 17 - Transferred-in costs, weighted-average method....Ch. 17 - Transferred-in costs, FIFO method. Refer to the...Ch. 17 - Operation costing. Egyptian Spa produces two...Ch. 17 - Standard-costing with beginning and ending work in...Ch. 17 - Equivalent units, comprehensive. Louisville Sports...Ch. 17 - Weighted-average method. Hoffman Company...Ch. 17 - Journal entries (continuation of 17-36). Required...Ch. 17 - FIFO method (continuation of 17-36). 1. Do Problem...Ch. 17 - Transferred-in costs, weighted-average method...Ch. 17 - Transferred-in costs, FIFO method (continuation of...Ch. 17 - Weighted-average method. McKnight Handcraft is a...Ch. 17 - FIFO method (continuation of 17-41). 1. Complete...Ch. 17 - Transferred-in costs, weighted-average method....Ch. 17 - Transferred-in costs, FIFO method. Refer to the...Ch. 17 - Standard costing, journal entries. The Warner...Ch. 17 - Multiple processes or operations, costing. The...Ch. 17 - Benchmarking, ethics. Amanda McNall is the...
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