Problem 20-1A
Production cost flow and measurement; journal entries L.O. P1, P2, P3, P4
[The following information applies to the questions displayed
below.]
|
Edison Company manufactures wool
blankets and accounts for product costs using process costing. The following
information is available regarding its May inventories.
|
|
|
Beginning
Inventory
|
|
Ending
Inventory
|
|
|
Raw materials
inventory
|
$
|
60,000
|
|
$
|
41,000
|
|
|
Goods in process
inventory
|
|
449,000
|
|
|
521,500
|
|
|
Finished goods
inventory
|
|
610,000
|
|
|
342,001
|
|
|
|
|
The following additional
information describes the company’s production activities for May.
|
|
|
|
|
|
|
Raw materials
purchases (on credit)
|
$
|
250,000
|
|
|
Factory payroll cost
(paid in cash)
|
|
1,850,300
|
|
|
Other overhead cost
(Other Accounts credited)
|
|
82,000
|
|
|
Materials used
|
|
|
|
|
Direct
|
$
|
200,500
|
|
|
Indirect
|
|
50,000
|
|
|
Labor used
|
|
|
|
|
Direct
|
$
|
1,060,300
|
|
|
Indirect
|
|
790,000
|
|
|
Overhead rate as a
percent of direct labor
|
|
115
|
%
|
|
Sales (on credit)
|
$
|
3,000,000
|
|
|
|
|
The predetermined overhead rate
was computed at the beginning of the year as 115% of direct labor cost.
|
\\\\\
rev: 11_02_2011
references
1.
value:
2.00
points
Problem 20-1A Part 1
|
Required:
|
|
1(a)
|
Compute the cost of products
transferred from production to finished goods. (Omit
the “$” sign in your response.)
|
|
Cost of products
transferred
|
$
|
|
1(b)
|
Compute the cost of goods sold. (Omit the “$” sign in your response.)
|
rev: 10_31_2011
check my workeBook
Links (4)references
2.
value:
5.00
points
Problem 20-1A Part 2
|
2(a)
|
Prepare journal entry dated May 31
to record the raw materials purchases. (Omit
the “$” sign in your response.)
|
|
Date
|
General
Journal
|
Debit
|
Credit
|
|
May
31
|
|
|
|
|
|
|
|
|
|
|
|
2(b)
|
Prepare journal entry dated May 31
to record the direct materials usage. (Omit
the “$” sign in your response.)
|
|
Date
|
General
Journal
|
Debit
|
Credit
|
|
May
31
|
|
|
|
|
|
|
|
|
|
|
|
2(c)
|
Prepare journal entry dated May 31
to record the indirect materials usage. (Omit
the “$” sign in your response.)
|
|
Date
|
General
Journal
|
Debit
|
Credit
|
|
May
31
|
|
|
|
|
|
|
|
|
|
|
|
2(d)
|
Prepare journal entry dated May 31
to record the payroll costs. (Omit the “$” sign in your response.)
|
|
Date
|
General
Journal
|
Debit
|
Credit
|
|
May
31
|
|
|
|
|
|
|
|
|
|
|
|
2(e)
|
Prepare journal entry dated May 31
to record the direct labor costs. (Omit
the “$” sign in your response.)
|
|
Date
|
General
Journal
|
Debit
|
Credit
|
|
May
31
|
|
|
|
|
|
|
|
|
|
|
|
2(f)
|
Prepare journal entry dated May 31
to record the indirect labor costs. (Omit
the “$” sign in your response.)
|
|
Date
|
General
Journal
|
Debit
|
Credit
|
|
May
31
|
|
|
|
|
|
|
|
|
|
|
|
2(g)
|
Prepare journal entry dated May 31
to record the other overhead costs. (Omit
the “$” sign in your response.)
|
|
Date
|
General
Journal
|
Debit
|
Credit
|
|
May
31
|
|
|
|
|
|
|
|
|
|
|
|
2(h)
|
Prepare journal entry dated May 31
to record the overhead applied. (Omit
the “$” sign in your response.)
|
|
Date
|
General
Journal
|
Debit
|
Credit
|
|
May
31
|
|
|
|
|
|
|
|
|
|
|
|
2(i)
|
Prepare journal entry dated May 31
to record the goods transferred from production to finished goods.(Omit the “$” sign in your response.)
|
|
Date
|
General
Journal
|
Debit
|
Credit
|
|
May
31
|
|
|
|
|
|
|
|
|
|
|
|
2(j)
|
Prepare journal entry dated May 31
to record the sale of finished goods. (Omit
the “$” sign in your response.)
|
|
Date
|
General
Journal
|
Debit
|
Credit
|
|
May
31
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| | |
|
Fairfax Company uses
weighted-average process costing to account for its production costs. Direct
labor is added evenly throughout the process. Direct materials are added at
the beginning of the process. During September, the company transferred
760,000 units of product to finished goods. At the end of September, the
goods in process inventory consists of 203,000 units that are 90% complete
with respect to labor. Beginning inventory had $438,165 of direct materials
and $188,540 of direct labor cost. The direct labor cost added in September
is $3,582,260, and the direct materials cost added is $2,932,335.
|
references
3.
value:
2.00
points
Problem 20-2A Part 1
|
Required:
|
|
1(a)
|
Determine the equivalent units of
production with respect to direct labor.
|
|
1(b)
|
Determine the equivalent units of
production with respect to direct materials.
|
check my workeBook
Links (2)references
4.
value:
2.00
points
Problem 20-2A Part 2
|
2.
|
Compute both the direct labor cost
and the direct materials cost per equivalent unit. (Round your answers to 2 decimal place. Omit the
“$” sign in your response.)
|
|
|
Per
equivalent
unit
|
|
Direct labor cost
|
$
|
|
Direct materials cost
|
$
|
|
|
check my workeBook
Links (2)references
5.
value:
2.00
points
Problem 20-2A Part 3
|
3(a)
|
Compute both direct labor cost and
direct materials cost assigned to units completed and transferred out. (Due to rounding of cost per unit, the total
costs accounted for in the cost summary may not equal to sum of all the costs
given in the problem. Round your per unit costs to 2 decimal places and final
answers to the nearest dollar amount.)
|
|
|
Cost
transferred
out
|
|
Direct materials
|
$
|
|
Direct labor
|
$
|
|
|
|
3(b)
|
Compute both direct labor cost and
direct materials cost assigned to ending goods in process inventory. (Due to rounding of cost per unit, the total
costs accounted for in the cost summary may not equal to sum of all the costs
given in the problem. Round your per unit costs to 2 decimal places and final
answers to the nearest dollar amount.)
|
|
|
Costs
of ending goods in process
|
|
Direct materials
|
$
|
|
Direct labor
|
$
|
|
|
Problem 20-3A
Journalizing in process costing; equivalent units and costs L.O. C2, P1, P2, P3
[The following information applies to the questions displayed
below.]
|
Li Company produces large
quantities of a standardized product. The following information is available
for its production activities for January.
|
|
|
|
|
|
|
|
|
|
|
Raw materials
|
|
|
|
Factory overhead
incurred
|
|
|
|
|
Beginning inventory
|
$
|
16,000
|
|
Indirect materials
used
|
$
|
80,500
|
|
|
Raw materials
purchased (on credit)
|
|
280,000
|
|
Indirect labor used
|
|
40,000
|
|
|
Direct materials used
|
|
(171,500
|
)
|
Other overhead costs
|
|
159,920
|
|
|
|
|
|
|
|
|
|
|
|
Indirect materials
used
|
|
(80,500
|
)
|
Total factory overhead
incurred
|
$
|
280,420
|
|
|
|
|
|
|
|
|
|
|
|
Ending Inventory
|
$
|
44,000
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Factory overhead
applied
|
|
|
|
|
Factory payroll
|
|
|
|
(140%
of direct labor cost)
|
|
|
|
|
Direct labor used
|
$
|
200,300
|
|
Total factory overhead
applied
|
$
|
280,420
|
|
|
|
|
|
|
|
|
|
|
|
Indirect labor used
|
|
40,000
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total payroll cost
(paid in cash)
|
$
|
240,300
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Additional information about units
and costs of production activities follows.
|
|
|
|
|
|
|
|
|
|
|
Units
|
|
|
Costs
|
|
|
|
|
|
Beginning goods in
process inventory
|
2,600
|
|
Beginning goods in
process inventory
|
|
|
|
|
|
Started
|
26,000
|
|
Direct
materials
|
$
|
3,000
|
|
|
|
Ending goods in
process inventory
|
4,900
|
|
Direct
labor
|
|
3,500
|
|
|
|
|
|
|
Factory
overhead
|
|
4,000
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
10,500
|
|
Status of ending goods in process inventory
|
|
|
Direct materials added
|
|
|
|
171,500
|
|
Materials—Percent
complete
|
90
|
%
|
Direct labor added
|
|
|
|
200,300
|
|
Labor
and overhead—Percent complete
|
75
|
%
|
Overhead applied (140%
of direct labor)
|
|
|
|
280,420
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total costs
|
|
|
$
|
662,720
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ending goods in
process inventory
|
|
|
$
|
92,911
|
|
|
|
During January, 22,000 units of
finished goods are sold for $160 cash each. Cost information regarding
finished goods follows.
|
|
|
|
|
|
|
Beginning finished
goods inventory
|
$
|
150,000
|
|
|
Cost transferred in
|
|
569,809
|
|
|
Cost of goods sold
|
|
(598,390
|
)
|
|
|
|
|
|
|
Ending finished goods
inventory
|
$
|
121,419
|
|
|
|
|
|
|
|
|
references
6.
value:
5.00
points
Problem 20-3A Part 1
|
Required:
|
|
1(a)
|
Prepare journal entry dated
January 31 to record the purchase of raw materials. (Omit the “$” sign in your response.)
|
|
Date
|
General
Journal
|
Debit
|
Credit
|
|
Jan.
31
|
|
|
|
|
|
|
|
|
|
|
|
1(b)
|
Prepare journal entry dated
January 31 to record the direct materials usage. (Omit the “$” sign in your response.)
|
|
Date
|
General
Journal
|
Debit
|
Credit
|
|
Jan.
31
|
|
|
|
|
|
|
|
|
|
|
|
1(c)
|
Prepare journal entry dated
January 31 to record the indirect materials usage. (Omit the “$” sign in your response.)
|
|
Date
|
General
Journal
|
Debit
|
Credit
|
|
Jan.
31
|
|
|
|
|
|
|
|
|
|
|
|
1(d)
|
Prepare journal entry dated
January 31 to record the factory payroll costs. (Omit
the “$” sign in your response.)
|
|
Date
|
General
Journal
|
Debit
|
Credit
|
|
Jan.
31
|
|
|
|
|
|
|
|
|
|
|
|
1(e)
|
Prepare journal entry dated
January 31 to record the direct labor costs used in production. (Omit the “$” sign in your response.)
|
|
Date
|
General
Journal
|
Debit
|
Credit
|
|
Jan.
31
|
|
|
|
|
|
|
|
|
|
|
|
1(f)
|
Prepare journal entry dated
January 31 to record the indirect labor costs. (Omit
the “$” sign in your response.)
|
|
Date
|
General
Journal
|
Debit
|
Credit
|
|
Jan.
31
|
|
|
|
|
|
|
|
|
|
|
|
1(g)
|
Prepare journal entry dated
January 31 to record the other overhead costs—credit Other Accounts.(Omit the “$” sign in your response.)
|
|
Date
|
General
Journal
|
Debit
|
Credit
|
|
Jan.
31
|
|
|
|
|
|
|
|
|
|
|
|
1(h)
|
Prepare journal entry dated
January 31 to record the overhead applied. (Omit
the “$” sign in your response.)
|
|
Date
|
General
Journal
|
Debit
|
Credit
|
|
Jan.
31
|
|
|
|
|
|
|
|
|
|
|
|
1(i)
|
Prepare journal entry dated
January 31 to record the goods transferred to finished goods. (Omit the “$” sign in your response.)
|
|
Date
|
General
Journal
|
Debit
|
Credit
|
|
Jan.
31
|
|
|
|
|
|
|
|
|
|
|
|
1(j)
|
Prepare journal entries dated
January 31 to record the sale of finished goods. (Omit the “$” sign in your response.)
|
|
Date
|
General
Journal
|
Debit
|
Credit
|
|
Jan.
31
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
check my workeBook
Links (4)references
7.
value:
5.00
points
Problem 20-3A Part 2
|
2.
|
Prepare a process cost summary
report for this company, showing costs charged to production, units cost
information, equivalent units of production, cost per EUP, and its cost
assignment and reconciliation. (Due
to rounding of cost per unit, the total costs accounted for in the cost summary
may not equal to sum of all the costs given in the problem. Round your cost
per EUP answers to 2 decimal places and consider the same in the other
calculations. Round other answers to the nearest dollar amount. Omit the
“$” sign in your response.)
|
|
LI
COMPANY
|
|
Process
Cost Summary
|
|
For
Month Ended January 31
|
|
Costs Charged to Production
|
|
|
|
Costs of beginning
goods in process
|
|
|
|
|
$
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
|
Costs incurred this
period
|
|
|
|
|
$
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total costs to account
for
|
|
$
|
|
|
|
|
|
|
|
Unit
cost information
|
|
Units
to account for
|
|
Units
accounted for
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total units to account
for
|
|
Total units accounted
for
|
|
|
|
|
|
|
|
|
|
Equivalent
units of production
|
Direct
Materials
|
Direct
Labor
|
Factory
Overhead
|
|
|
EUP
|
EUP
|
EUP
|
|
|
EUP
|
EUP
|
EUP
|
|
|
|
|
|
|
Equivalent units of
production
|
EUP
|
EUP
|
EUP
|
|
|
|
|
|
|
|
|
Cost
per EUP
|
Direct
Materials
|
Direct
Labor
|
Factory
Overhead
|
|
|
$
|
|
|
$
|
|
|
$
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total costs
|
$
|
|
|
$
|
|
|
$
|
|
|
|
|
|
|
EUP
|
|
|
EUP
|
|
|
EUP
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost per EUP
|
$
|
|
Per EUP
|
$
|
|
Per EUP
|
$
|
|
Per EUP
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost
assignment and reconciliation
|
|
Costs transferred out
|
|
|
|
|
$
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
|
Costs of ending goods
in process
|
|
|
|
|
$
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total costs to account
for
|
|
$
|
|
|
|
|
|
roblem 20-5A Process
cost summary, equivalent units, cost estimates L.O. C2, C3, P4
[The following information applies to the questions displayed
below.]
|
Ogden Co. manufactures a single
product in one department. All direct materials are added at the beginning of
the manufacturing process. Direct labor and overhead are added evenly
throughout the process. The company uses monthly reporting periods for its
weighted-average process cost accounting. During October, the company
completed and transferred 24,600 units of product to finished goods
inventory. Its 4,200 units of beginning goods in process consisted of $20,800
of direct materials, $203,300 of direct labor, and $100,040 of factory
overhead. It has 3,000 units (100% complete with respect to direct materials
and 90% complete with respect to direct labor and overhead) in process at
month-end. After entries to record direct materials, direct labor, and
overhead for October, the company’s Goods in Process Inventory account
follows.
|
|
|
Goods
in Process Inventory
|
|
|
Acct.
No.133
|
|
Date
|
Explanation
|
Debit
|
Credit
|
Balance
|
|
Oct.
1
|
Balance
|
|
|
324,140
|
|
31
|
Direct materials
|
504,900
|
|
829,040
|
|
31
|
Direct labor
|
1,224,300
|
|
2,053,340
|
|
31
|
Applied overhead
|
963,840
|
|
3,017,180
|
|
|
references
8.
value:
5.00
points
Problem 20-5A Part 1
|
1.
|
Prepare the company’s process cost
summary for October using the weighted-average method. (Due to rounding of cost per unit, the total
costs accounted for in the cost summary may not equal to sum of all the costs
given in the problem. Round your cost per EUP answers to 2 decimal places and
consider the same in the other calculations. Round other answers to the nearest
dollar amount. Omit the “$” sign in your response.)
|
|
OGDEN
CO.
|
|
Process
Cost Summary
|
|
For
Month Ended October 31
|
|
Costs Charged to Production
|
|
|
|
Costs of beginning
goods in process
|
|
|
|
|
$
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
|
Costs incurred this
period
|
|
|
|
|
$
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total costs to account
for
|
|
$
|
|
|
|
|
|
|
|
Unit
cost information
|
|
Units
to account for
|
|
Units
accounted for
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total units to account
for
|
|
Total units accounted
for
|
|
|
|
|
|
|
|
|
|
Equivalent
units of production
|
Direct
Materials
|
Direct
Labor
|
Factory
Overhead
|
|
|
EUP
|
EUP
|
EUP
|
|
|
EUP
|
EUP
|
EUP
|
|
|
|
|
|
|
Equivalent units of
production
|
EUP
|
EUP
|
EUP
|
|
|
|
|
|
|
|
|
Cost
per EUP
|
Direct
Materials
|
Direct
Labor
|
Factory
Overhead
|
|
|
$
|
$
|
$
|
|
|
|
|
|
|
|
|
|
|
|
Total costs
|
$
|
$
|
$
|
|
|
EUP
|
EUP
|
EUP
|
|
|
|
|
|
|
Cost per EUP
|
$ per EUP
|
$ per EUP
|
$ per EUP
|
|
|
|
|
|
|
|
|
Cost
assignment and reconciliation
|
|
Costs transferred out
|
|
|
|
|
$
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
|
Costs of ending goods
in process
|
|
|
|
|
$
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total costs to account
for
|
|
$
|
|
|
|
|
|
|
check my workeBook
Links (3)references
9.
value:
2.00
points
Problem 20-5A Part 2
|
2.
|
Prepare the journal entry dated
October 31 to transfer the cost of completed units to finished goods
inventory. (Omit the “$” sign in your response.)
|
|
Date
|
General
Journal
|
Debit
|
Credit
|
|
Oct.
31
|
|
|
|
|
|
|
|
|
|
|
check
my workeBook
Links (3)reference
