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# SOLUTIONS TO SHORT PROBLEMS

:
C19. SUPPORTING CALCULATION:
Materials = 40,000 + 240,000 = 280,000
Conversion = (280,000 - 25,000) + .6(25,000) = 270,000
B20 SUPPORTING CALCULATION: (\$12,800 + \$69,700)  (85,000 + 14,000) = \$.833

B21 SUPPORTING CALCULATION:
(\$3,000 + \$25,560)  (44,000 + 12,000) = \$.51
\$.51 x 12,000 = \$6,120

E22 SUPPORTING CALCULATION:
Transferred-in costs = \$41,000  20,000 =
Materials cost = \$8,000  20,000 =
Conversion cost = \$6,000  18,000 =

\$2.05
.40
.33
\$2.78

A23 SUPPORTING CALCULATION: 20,000 + .75(8,000) = 26,000

D24 SUPPORTING CALCULATION: \$5(4,000) + \$3(4,000 x .4) = \$24,800

A29 SUPPORTING CALCULATION: (15,000 x .4) + 45,000 + (12,000 x .8) = 60,600

D30 SUPPORTING CALCULATION:
Materials = 30,000 + 8,000 = 38,000
Conversion = (10,000 x .2) + 30,000 + (8,000 x .6) = 36,800

E31 SUPPORTING CALCULATION:
(20,000 x .4) + 300,000 + (40,000 x .4) = 324,000

Matz, Usry, Macuja

Cost Accounting - Planning and Control

..28 2 Problem 2...000 units Labor and factory overhead: 33..... Materials (5.000 50..100) / 37............'s direct labor in all inventories..500 units = \$15..............000 units x 1/2 x \$14.. Labor .000 50.......500 \$ 66................................................ Usry....SOLUTIONS TO LONG PROBLEMS: Problem 1..98 \$ 0........500 units* = \$14.31 1 \$28.........000 x 1/2 = \$14................. Factory overhead................... \$1...500 \$ 66.........20 per unit Factory overhead: (\$173............... Finished goods ..............................000 units x 1/2) ..... Macuja 79..... Total cost to be accounted for ..000 40............................................ Work in process—Polishing Department ..80 0...............................000 + 5..... Dec...........000 = 40.... SOLUTION (1) Work in process—Sanding Department ....000 15..... Work in process—Polishing Department (1.... Finished goods .80) ....000 20............ SOLUTION (1) Materials: (\$100.......000 50................................... \$ \$ Matz..50) .................. Units of materials in all inventories.........................50 per unit *Equivalent production: Materials: 33..... --1 \$ 14..000 units = \$.. 31 ......500 1........500 Cooking Department Total Equivalent Unit Cost Units Cost 50..000 50.............................. December 31 ...........000 --- 50......000 units x 1/2 x \$15.500 38........000 units x \$10....................................................000 units* = \$10................ 800 500 600 1..............................33 Cost added by department ......................500 35..............................000 \$0...........28 0..........500 units (2) Units in process at end of period: Completed and on hand (2...................................000 14.................000 + (1/2 x 5..................000 12..........000 \$14...10 per unit Labor: (\$125........................000 x \$39............................ Factory overhead (5..................000) / 40.. (2) Work in process—Sanding Department (800 units x 3/4)................................. SOLUTION Fort Myers Corporation Partial Cost of Production Report For May.... Total cost added ............. Units of Sanding Dept...................30 \$0...000 49...600 50............500 + \$407.....000) = 37................. Problem 3...........000  50................25 \$ 1..500 50........Planning and Control ..................000* 600* 2.....10) ......................................... 19-Mixing Department Total Equivalent Unit Cost Units Cost Cost from preceding department .....000 + \$304.......33 \$ \$ \$ 115.....750) / 37.....33 \$ \$2.........400 + \$407............... Materials .........................900 600 1.....................................28 0.200 * All Sanding Department direct labor would be in all of these units or else they never would have been transferred..... Labor (5.........000 2 \$ 66..000 + 2..350 Cost Accounting ........000 50......20) .........40 0..000 + 2......750 204........

.......000 20.........000 Finished Goods Inventory ...............................000 Work in Process — Department B ................................................. 360..................000 360.........................................................000 Work in Process — Department A.........000 35............................................000 45....000 225........ Macuja 75..................................................................................................................000 Work in Process — Department A.................................... Usry......................000 35...................................................................... 25.000 Matz.............................................................000 125.....................000 Cost Accounting ...................... 225............ Work in Process — Department B ......................... Work in Process — Department A ............ Applied Factory Overhead ............ Work in Process — Department B ........... Work in Process — Department B ............................................................................... 90..................Problem 4.................................................................................. SOLUTION Work in Process — Department A................Planning and Control ... 40........................................................................................... Payroll... Work in Process — Department B ...................................................... Materials ..

....25 \$ 17....500 7............. Cost added during period: Cost from preceding department .......000 7....500 1...............000 Labor 8..500 2.................700 16......800 3................... Factory overhead .. Materials Labor Overhead Beginning inventory ....... Cost 8...............50 2... Equivalent units in ending inventory ...000 10................ Total cost added during period .....................500 2... Labor ......Planning and Control ................475 \$ 63................................. Labor .................................500 1.......10 5.075 * Total number of equivalent units required in the cost accounted for section determined as follows: Equivalent units transferred out ...........85 2..... Work in process.. Total equivalent units ....... Macuja Prior Dept..275 2.... ending inventory: Cost from preceding department . Total cost charged to the department ..................500 10.500 10............500 Equivalent Units* Unit Cost 15.... Beginning inventory: Cost from preceding department .075 10...................................................Problem 5............750 39.............500 50% 8.. SOLUTION Isogen Corporation Planning Department Cost of Production Report For September.......600 \$ 177. Materials ................... Total cost accounted for .. Materials .... Factory overhead ...........500 1..........................250 26................................................ Received from Cutting Department ..........000 9..............200 9....... Factory overhead .70 \$150.... Usry.500 Cost Accounting ............................500 9.. Materials ... 50% \$ \$ Quantity 3.......000 10.......000 9.......000 100 75 50 50 7.............. Labor ..500 10......................25 \$ 15.85 2................... Cost Accounted for as Follows Transferred to Finishing Department .................500 Materials 8....000 2..000 9..900 \$ 140.100 5......... 75% Total Cost Cost Charged to Department ....... Transferred to Finishing Department .............250 20.................000 2....... Matz...500 \$ 7............450 2...... 19-Quantity Schedule ......500 100% \$17............ Ending inventory. Total cost in beginning inventory .........................................................975 36.625 \$177.....10 5..........500 Overhead 8.................70 Units % Complete Unit Cost Total Cost 8...........000 2....000 4...................50 2.....................

.. Materials ...................600 15..Planning and Control ....000 15............ Beginning Inventory: Cost from preceding department ......920 \$28..000 Labor 14..600 \$ ..000 4... Transferred to Bottling Department ......... Total cost charged to the department .........000 18...........18 ............................................................ Total cost accounted for ..............000 4............000 100% \$1........000 18........ Labor \$ \$ Overhead 40% Quantity 2........................000 14..170 \$ 28............................................. Factory overhead ............ Labor .............000 100 100 40 40 ................. Ending inventory.. Cost added during period: Cost from preceding department ....... ending inventory: Cost from preceding department .. Received from Mixing Department ..18 .....150 2.....68 \$23.....520 2.............000 12.....300 720 1....000 720 400 800 4..75 ....... Beginning inventory ..270 \$ 11...........................................000 4........6............. SOLUTION Carlson Chemical Company Blending Department Cost of Production Report For October............68 Units % Complete Unit Cost Total Cost 14........ Work in process..... Cost 14...25 .......................................... Total cost added during period .200 2..................... Added to process in Blending Department ................ Total cost in beginning inventory ................50 \$3.... Labor ...... Materials ... Cost Accounted for as Follows ........ Materials ............. Labor .........100 6... Matz..50 \$ 1.. Factory overhead .........75 ......750 5............................. Factory overhead .000 Equivalent Units* Unit Cost 2............440 * Total number of equivalent units required in the cost accounted for section determined as follows: Equivalent units transferred out ..........520 4...............440 18...................................000 Cost Accounting ..000 18........... Usry.....................................000 4.700 \$ 22........... Materials 100% 40% Total Cost Cost Charged to Department .. Macuja Prior Dept.......000 Materials 14........ 19-Quantity Schedule ......000 4.......25 ........................................... Transferred to Bottling Department .......000 Overhead 14...

000 units x 1/4) ....480 2...............000 4............................ Add ending inventory: Materials (4......... Beginning inventory ..........600 7.................................000 2.............000 4...... Received from Shaping Department .................. Add beginning inventory (work this period): Materials (8........ Macuja Materials 90% Labor 80% 50 40 Total Cost \$ \$ \$ Overhead 80% Quantity 1.....600 1........................000 Problem 8........913 \$ 108.600 Materials 19.................700 29..................... Labor and factory overhead (4. Beginning inventory: Cost from preceding department ................. Matz........................... Factory overhead ...........900 39............... Cost added during period: Cost from preceding department ............... Cost Charged to Department ................ Total cost charged to the department .......000 18...000 3....... Units started and finished this period ..................000 18.........000 2.........................................600 15....250 13........ Problem 7........000 4............................000 8............613 3...................75 5.............375 9..616 \$ 68.............000 units x 1/2) ................000 11.. Equivalent production ....................000 Units transferred out ...............70 \$ 25. 1.600 15... Ending inventory...... Labor ...............................800 1........ SOLUTION Handy Tool Corporation Assembly Department Cost of Production Report For November.............................000 40 Equivalent Units* Unit Cost 23........000 15...000 11. Less beginning inventory (all units) .....................200 4........................000 16.000 units x 1/2) ....................000 Labor and Factory Overhead 19...000 2.......Planning and Control ..................90 6............................................. Transferred to Finishing Department ..............500 4..........................................................................................672 16....480 \$ 9... Factory overhead ...................... Usry.................. Total cost added during period .....000 2.................................... Materials ..........700 3................000 1............. Labor .000 units x 1/4) .........................................................000 8.............. Labor and factory overhead (8..500 2..................35 3.....................Equivalent units in ending inventory .... Total equivalent units ...................................................... 19-Quantity Schedule .................... Total cost in beginning inventory ........... Materials ................ SOLUTION 4..........................70 Cost Accounting ............

340 \$ 25... Total cost accounted for .216 88. Ending inventory...................Cost Accounted for as Follows ..480 Overhead 200 1...260 \$ 1..........................800 480 2........000 1. Factory overhead ....800 1.800 10% 20 20 100 \$ 5..200 3.........................500 Labor 200 1.. Total equivalent units ..000 Materials 100 1..................................................... Usry...........872 3.......200 1.. Started and completed this period ........ Transferred to Finished Goods: Beginning inventory .........800 480 2..70 535 780 1.. Labor .200 1.......70 46.......70 42........000 1..90 6................800 600 2.... Started and completed this period ..................700 1.. Units % Complete Unit Cost Total Cost \$39.........210 1.......35 3........615 19. Cost to complete: Materials ....700 3........90 6.. Total cost transferred to Finished Goods ... Cost 0 1.....480 Cost Accounting ......... ending inventory: Cost from preceding department .. Macuja Prior Dept................. Work in process........35 3..........................Planning and Control .....75 5............... Materials ......................000 1.200 100% 50 40 40 \$ 9....................... Labor ...........355 11..... Matz..................................613 * Number of equivalent units of cost added during the current period determined as follows: To complete beginning inventory .998 \$ 108.... Factory overhead ...200 1.........