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Sanchez Manufacturing purchases $45,000 of raw materials on account, and it incurs $50,000 of factory labor costs.

Supporting records show that (a) the Assembly Department used $24,000 of raw materials and $30,000 of the
factory labor, and (b) the Finishing Department used the remainder. Journalize the assignment of the costs to the
processing departments on March 31. (List multiple debit/credit entries from largest to smallest amount, e.g. 10, 5,
2.)

Date Account/Description Debit Credit

Work in process-Assembly department


(a) Mar. 31
24000

Work in process-Finishing department

21000

Raw materials inventory 45000

Work in process-Assembly department


(b) Mar.31
30000

Work in process-Finishing department

20000

50000
Factory labor

Mora Company has the following production data for March: no beginning work in process, units started and
completed 30,000, and ending work in process 5,000 units that are 100% complete for materials and 40% completed
for conversion costs. Mora uses the FIFO method to compute equivalent units. If unit material cost is $8 and unit
conversion cost is $12, determine the cost to be assigned to units transferred out and the units in ending work in
process. The total costs to be assigned are $664,000.

Cost of units transferred out


$ 600000

Cost of units in ending work in process $ 64000

Cost to be Equivalent Unit


Assigned Assignment of Costs Units Costs Total Costs Assigned

Transferred out
Work in process 3/1 0 $0 $0
600,0 $600,
Started and completed 30,000 $20.00 00
000
$664,000
Work in Process, 3/31

$40,0
Materials 5,000 $8.00
00
24,00 64,00
Conversion costs 2,000 $12.00 0 0

$664,
000

In Ramirez Company, materials are entered at the beginning of each process. Work in process inventories,
with the percentage of work done on conversion costs, and production data for its Sterilizing Department in
selected months during 2010 are as follows.

Beginning Ending
Work in Process Work in Process

Units
Conversion Transferred
Month Units Cost% Out Units Conversion Cost%

January -0- - 7,000 2,000 60


March -0- - 12,000 3,000 30
May -0- - 16,000 5,000 80
July -0- - 10,000 1,500 40

Correct.

Compute the physical units for January and May. (If answer is zero, please enter 0, do not leave any fields
blank.)

January May

Units to be accounted for

0
Beginning work in process
0

9000
Started into production
21000

9000

Total units 21000

Units accounted for


7000
Transferred out
16000
2000

Ending work in process 5000

9000

Total units 21000

Compute the equivalent units of production for (1) materials and (2) conversion costs for each month.

Materials Conversion Costs

January
9000 8200

March
15000 12900
May
21000 20000

July 10600
11500

Materials Conversion Costs

January 9,000 (7,000 + 2,000) 8,200 (7,000 + 1,200)

March 15,000 (12,000 + 3,000) 12,900 (12,000 + 900)

May 21,000 (16,000 + 5,000) 20,000 (16,000 + 4,000)

July 11,500 (10,000 + 1,500) 10,600 (10,000 + 600)

Pink Martini Company has gathered the following information.

Units in beginning work in process 20,000

Units started into production 72,000

Units in ending work in process 24,000

Percent complete in ending work in process:

Conversion costs 60%

Materials 100%

Costs incurred:

Direct materials $101,200

Direct labor $164,800

Overhead $123,600
Correct.

Compute equivalent units of production for materials and for conversion costs.

Materials
92000

Conversion costs
82400

Materials: 68,000(1) + 24,000 = 92,000

Conversion costs: 68,000 + (24,000 × 60%) = 82,400


(1) 20,000 + 72,000 - 24,000

Determine the unit costs of production. (Round answers to 2 decimal places, e.g. 5.25.)

Unit cost-Materials
$ 1.10

Unit cost-Conversion costs


$ 3.50

Materials: $101,200 ÷ 92,000 = $1.10

Conversion costs: ($164,800 + $123,600) ÷ 82,400 = $3.50


Show the assignment of costs to units transferred out and in process.

Units transferred out


$ 312800

Units in ending work in process $ 76800

Units transferred out: 68,000 × $4.60 = $312,800

Units in ending work in process:

24,000 × $1.10 $26,400

14,400 × $3.50 50,400

$76,800

Luther Processing Company uses a weighted-average process costing system and manufactures a single product-a
premium rug shampoo and cleaner. The manufacturing activity for the month of October has just been completed. A
partially completed production cost report for the month of October for the mixing and cooking department is shown
below.

Complete the production cost report. (Round the unit costs to 2 decimal places, e.g. 5.25.)

LUTHER PROCESSING COMPANY

Mixing and Cooking Department

Production Cost Report

For the Month Ended October 31

Equivalent Units

Quantities Physical Units Materials Conversion Costs

Units to be accounted for


Work in process,
October 1
(all materials, 70%
conversion costs) 20,000
160,000
Started into production
180,000
Total units
Units accounted for

Transferred out 130,000


130000 130000
Work in process,
October 31
(60% materials, 40%

conversion costs) 50,000 30000 20000

Total units 180,000160000 150000

Costs Materials Conversion Costs Total

Unit costs
$240,000 $105,000 $345,000
Costs in October

Equivalent units 160000 150000

Unit costs $ 1.5 $ .7 $ 2.2

Cost to be accounted for


Work in process,
$30,000
October 1
315,000
Started into production
$345,000
Total costs

Cost Reconciliation
Schedule

Costs accounted for


$ 286000
Transferred out

Work in process,
October 31
$ 45000
Materials

Conversion costs 14000 59000


$ 345000
Total costs

Computation of equivalent units:

Equivalent Units

Physical Units Materials Conversion Costs

Units to be accounted for


Transferred out 130,000 130,000 130,000
Work in process, October 31
50,000 30,000 20,000
(60% materials, 40% conversion costs)
180,000 160,000 150,000
Total units
Computation of October unit costs:

Materials: $240,000 ÷ 160,000 equivalent units = $1.50

Conversion costs: $105,000 ÷ 150,000 equivalent units = .70

$2.20
Total unit cost, October

Cost Reconciliation Schedule

Costs accounted for

Transferred out (130,000 × $2.20) $286,000

Work in process, October 31

Materials (30,000 × $1.50) $45,000

Conversion costs (20,000 × $0.70) 14,000 59,000

$345,000
Total costs

In a process cost system, total costs are determined at the end of a month or year.

True
False

When finished goods are sold, the entry to record the cost of goods sold is a debit to Finished Goods Inventory and a
credit to Cost of Goods Sold.

False

True

A product requires processing in two departments, Department A and then Department B, before it is completed.
Costs transferred out of Department A will be transferred to

Work in Process—Department B.

Finished Goods Inventory.

Manufacturing Overhead.

Cost of Goods Sold.


A process with no beginning work in process, completed and transferred out 45,000 units during a period and had
30,000 units in the ending work in process inventory that were 30% complete. The equivalent units of production for
the period were
54,000 equivalent units.

22,500 equivalent units.

45,000 equivalent units.

75,000 equivalent units.

Cinder Company had the following department information for the month:
Total materials costs $80,000
Equivalent units of materials 10,000
Total conversion costs $120,000
Equivalent units of conversion costs 20,000

How much is the total manufacturing cost per unit?


$14.00

$6.67

$8.00

$6.00
Zibba Company enters materials at the beginning of the process. In January, there was no beginning work in
process, but there were 100 units in the ending work in process inventory. The number of units completed equals the
number of
units started plus 100.

equivalent units.

units started.

units started less 100.

If 80,000 units are transferred out of a department and there are 16,000 units still in process at the end of a period,
the number of units that were started into production during the period is
80,000.

96,000.

64,000.

16,000.

The Welding Department of Batista Manufacturing Company has the


following production and manufacturing cost data for February 2010. All
materials are added at the beginning of the process.
Manufacturing Costs Production Data
Beginning work in
Beginning work in process 15,000 units
process

1/10
Materials $18,000
complete

Conversion costs 14,175 $32,175 Units transferred out 49,000

Materials 180,000 Units started 60,000

Labor 32,780 Ending work in process 26,000 units

1/5
Overhead 61,445
complete
Complete the production cost report for the Welding Department for the month of February. (Round unit costs to 2
decimal places, e.g. 3.25)

BATISTA MANUFACTURING COMPANY

Welding Department

Production Cost Report

For the Month of February 28, 2010

Equivalent
Units

Conver
Physical Materia sion
Quantities Units ls Costs

Units to be accounted for


Work in process, February 1 15,000
60,000
Started into production
75,000
Total units

Units accounted for


Transferred out 49,000 49,000 49,000
26,000 26,000 5,200
Work in process, February 28
75,000 75,000 54,200
Total units

Costs Materia Conver Total


ls sion
Costs

Unit costs
(1) $198,0 (2)$108,
$306,400
Costs in February 00 400

75,000 54,200
Equivalent units
$2.64 $2.00 $4.64
Unit costs

Cost to be accounted for


Work in process, February 1 $32,175
274,225
Started into production
$306,400
Total costs

Cost Reconciliation Schedule

Costs accounted for


Transferred out (49,000 × $4.64) $227,360
Work in process, February 28
$68,64
Materials (26,000 × $2.64)
0
10,400 79,040
Conversion costs (5,200 × $2.00)
$306,400
Total costs
(1) $18,000 + $180,000
(2) $14,175 + $32,780 + $61,445