1.Computing equivalent production
Compute the equivalent production (unit output) for the month for each of the following situations:
a. Units completed during month Units in process Stage of completion
10,000 5,000 ½
b. 22,000 4,000 ¾
c. 8,000 1,000 ¼
500 2/5
d. 25,000 5,000 ½
5,000 ¾
e. 48,000 1,500 4/5
4,000 ¼
2.Computing Unit Cost
The records of Romano, Inc. reflect the following data:
Work in process, beginning of month-2,000 units one-half completed at a cost of $1,250 for materials, $675 for labor, and $950 for overhead.
Production costs for the month-materials, $99,150; labor, $54,925; factory overhead, $75,050.
Units completed and transferred to stock-38,500.
Work in process, end of month-3,000 units, one-half completed.
Compute the month's unit cost for each element of manufacturing cost and the total per unit cost.
3.Identifying cost flows in process cost system
List in columnar form the transactions and the accounts debited and credited to reflect the flow of costs through a process cost accounting system for the:
1. purchase of materials and supplies, on account
2. issuance of materials and supplies to the factory
3. factory labor costs incurred
4. other factory costs incurred
5. distribution of actual factory overhead to the individual departments
6. application of factory overhead to the departments
7. transfer of units from one department to another
8. completion of units
9. sale of units
4.Computing unit cost for department and for completed units with beginning inventory
1. For E5-13, prepare a cost of production summary for the month ended January 31, 2013.
In E5-13, Charlotte Concrete Inc. has two production departments. Blending had 1,000 units in process at the beginning of the period, two-fifths complete. During the period 7,800 units were received from Mixing, 8,200 units were transferred to the finished goods storeroom, and 600 units were in process at the end of the period, 1/3 complete. The cost of the beginning work in process was:
Cost in Mixing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $10,000
Cost in Blending:
Materials . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 200
Labor . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 500
Factory overhead . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 300
The costs during the month were:
Cost of goods received from Mixing. . . . . . . . . . . . . . . . . . . . . . . $78,000
Cost in Blending:
Materials . . . . . . . . . . . . . . . . . . . . . . . . . . . . ........................ 3,328
Labor . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10,000
Factory overhead . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6,672
a. Determine the unit cost for the month in Blending.
b. Determine the total cost of the products transferred to finished goods.
c. Determine the total cost of the ending work in process inventory.
Required minimum-2 page