Cost Accounting Assignment
1) Daniel LLC incurred the following cost in the month of October:
Material $55,000
Labor $46,000
Factory Overhead $23,000
There was no beginning inventory. Ending work in process was 10,000 units at 50 percent complete. 15,000 units were completed and transferred out.
Prepare a cost of production summary for the month, assuming Daniel uses the average cost method of process costing
2) Consider the following cost of production summary for Carrigan Products for May.
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Carrigan Products
Cost of Production Summary
For the Month Ended May 31, 20--
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Cost of work in process, beginning of month:
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Materials
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$ 8,200
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Labor
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5,500
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Factory overhead
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2,000
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$15,700
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Cost of production for month:
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Materials
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$24,000
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Labor
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17,600
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Factory overhead
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16,900
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58,500
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Total costs to be accounted for
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$74,200
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Unit output for month:
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Finished and transferred to Finished goods
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during month
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2,000
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Equivalent units of work in process, end of
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month (1,000 units, 80% completed)
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800
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Total equivalent production
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2,800
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Unit cost for month:
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Materials [($8,200 + $24,000) / 2,800]
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$ 11.50
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Labor [($5,500 + $17,600) / 2,800]
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8.25
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Factory overhead [($2,000 + $16,900) / 2,800]
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6.75
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Total
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$ 26.50
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Inventory costs:
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Cost of goods finished and transferred to
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Finished goods during month: (2,000 × $26.50)
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$53,000
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Cost of work in process, end of month:
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Materials (1,000 × .8 × $11.50)
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$ 9,200
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Labor (1,000 × .8 × $8.25)
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6,600
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Factory overhead (1,000 × .8 × $6.75)
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5,400
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21,200
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Total production costs accounted for
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$74,200
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a. Prepare the journal entries to record the production activity.
b. Prepare the Statement of Cost of Goods Manufactured for May.
3) Howard Corporation has two production departments. Curing has 12,000 units in process at the beginning of the period, 3 / 4 complete. During the period, 45,000 units were received from Crushing, 48,000 units were transferred to Finished Goods, and 9,000 units were in process at the end of the period, 2/ 3 complete. Cost information was as follows:
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Cost of beginning Work in Process:
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Cost in Crushing
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$ 21,640
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Cost in Curing:
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Materials
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8,810
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Labor
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1,190
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Factory overhead
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2,420
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Costs during the month:
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Cost of goods received from Crushing
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$ 85,520
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Cost in Curing:
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Materials
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53,830
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Labor
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10,690
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Factory overhead
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17,560
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Total costs to be accounted for
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$201,660
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a. Determine the unit cost for the month in Curing.
b. Determine the total cost of the products transferred to Finished Goods.
c. Determine the total cost of the ending Work in Process inventory.
4) Information for Chaucer, Ltd. in July for the Prep Department, the first stage of the production cycle, is as follows:
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Materials
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Conversion Costs
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Beginning work in process
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$ 8,100
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$ 6,200
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Costs added during July
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23,400
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13,400
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Total costs
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$31,500
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$19,600
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Goods completed
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60,000 units
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Ending work in process
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15,000 units
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Material costs are added at the beginning of the process. The ending work in process is two-thirds complete as to conversion costs. How would the total costs accounted for be distributed using the average cost method?
5) Howard Poster Incorporated had 12,000 units of work in process in Department A on October 1. These units were 60 percent complete as to conversion costs. Materials are added in the beginning of the process. During the month of October, 38,000 units were started and 40,000 units were completed. Howard had 10,000 units of work in process on October 31. These units were 75 percent complete as to conversion costs.
1) Compute the equivalent units for materials and conversion costs for the month of October using the FIFO method.
2) Using the average cost method determine the equivalent units for materials and conversion costs for the month of October.
6) Jim Davis Company processes Pork into three products, chops, bacon and sausage. Production and selling price data follow:
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Chops
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100,000 lbs.
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$5.00/ lb.
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Bacon
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210,000 lbs.
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$4.00/ lb.
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Sausage
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410,000 lbs.
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$2.00/ lb.
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Pork are processed in the Processing Department. From the split-off point, bacon is smoked, sliced and packaged in the Bacon Department. The cost incurred for these processes was $100,000. In addition, sausage was ground and formed into patties in the Sausage Department after the split-off. This process cost $60,000.
Required:
a) If joint processing costs were $1,500,000, calculate the total cost of each product using the adjusted sales value method.
b) Prepare the journal entries to 1) record the joint processing and movement of product out of the Processing Department after the split off, and 2) record the additional processing and completion of the bacon and sausage.