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Problem 1
Fiedel Company manufactures its product, Vitadrink, through two manufacturing processes: Mixing and Packaging. All materials are entered at the beginning of each process. On October 1, 2008, inventories consisted of Raw Materials $28,000, Work in Process-Mixing $0, Work in Process-Packaging $255,000, and Finished Goods $291,000. The beginning inventory for Packaging consisted of 14,000 units that were 50% complete as to conversion costs and fully complete as to materials. During October, 51,000 units were started into production in the Mixing Department and the following transactions were completed.
Purchased $302,300 of raw materials on account.
Issued raw materials for production: Mixing $211,700 and Packaging $47,400.
Incurred labor costs of $252,000.
Used factory labor: Mixing $187,400 and Packaging $69,800.
Incurred $791,200 of manufacturing overhead on account.
Applied indirect manufacturing overhead on the basis of $25 per machine hour. Machine hours were 30,100 in Mixing and 8,000 in Packaging.
Transferred 47,000 units from Mixing to Packaging at a cost of $982,400.
Transferred 57,000 units from Packaging to Finished Goods at a cost of $1,316,100.
Sold goods costing $1,643,700 for $2,503,700 on account.
Journalize the October transactions. (For multiple debit/credit entries, list amounts from largest to smallest eg 10, 5, 3, 2.) Description/Account Debit Credit
1.
2.
3.
4.
5.
6.
7.
8.
9.
(To record sales.)
(To record cost of goods sold.)
Problem 2
Chen Company manufactures basketballs. Materials are added at the beginning of the production process and conversion costs are incurred uniformly. Production and cost data for the month of July 2008 are as follows.
Production Data-Basketballs Units Percent
Complete
Work in process units, July 1 685 60%
Units started into production 1,370
Work in process units, July 31 822 30%
Cost Data - Basketballs
Work in process, July 1
Materials $1,028
Conversion costs 822
$1,850
Direct materials 3,288
Direct labor 2,165
Manufacturing overhead 1,452
Calculate the following. (Round unit costs to 3 decimal places, e.g. 2.250. Round all other answers to 0 decimal places, e.g. 125.)
The equivalent units of production for materials and conversion.
Materials
Conversion costs
The unit costs of production for materials and conversion costs.
Unit cost-Materials $
Unit cost-Conversion costs $
The assignment of costs to units transferred out and in process at the end of the period.
Costs accounted for
Transferred out $
Work in process, July 31
Materials $
Conversion costs
Total costs $
Prepare a production cost report for the month of July for the basketballs. (Round unit costs to 3 decimal places, e.g. 2.250. Round all other answers to 0 decimal places, e.g. 125.)
CHEN COMPANY
Basketball Department
Production Cost Report
For the Month Ended July 31, 2008
Equivalent Units
Quantities
Physical Units
Materials
Conversion Costs
Units to be accounted for
Work in process, July 1
Started into production
Total units
Units accounted for
Transferred out
Work in process, July 31
Total units
Costs
Materials
Conversion Costs
Total
Unit costs
Costs in July $
$
$
Equivalent units
Unit costs $
$
Cost to be accounted for
Work in process, July 1 $
Started into production
Total costs $
Cost Reconciliation Schedule
Costs accounted for
Transferred out $
Work in process, July 31
Materials $
Conversion costs
Total costs $
This is all process cost managerial accounting should be pretty ez fg imo
This post was edited by Dawa on Oct 5 2009 08:59pm
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