29 Jun Question Managerial Accounting 1B
Question
Managerial Accounting 1B
Financial and Managerial Accounting
Chapter 16
1.Exercise 16-6 Recording cost flows in a process cost system L.O. P1, P2, P3, P4
Lowes Lumber produces bagged bark for use in landscaping. Production involves packaging bark chips in plastic bags in a bagging department. The following information describes production operations for October.
Bagging
Department
Direct materials used
$
230,000
Direct labor used
$
38,000
Predetermined overhead rate (based on direct labor)
120
%
Goods transferred from bagging to finished goods
$
(203,500
)
The company’s revenue for the month totaled $450,000 from credit sales, and its cost of goods sold for the month is $250,000.
(1)
Prepare journal entry dated October 31 to record its October production activities for direct material usage.(Omit the “$” sign in your response.)
(2)
Prepare journal entry dated October 31 to record its October production activities for direct labor usage.(Omit the “$” sign in your response.)
(3)
Prepare journal entry dated October 31 to record its October production activities for overhead allocation.(Omit the “$” sign in your response.)
(4)
Prepare journal entry dated October 31 to record its October production activities for goods transfer from production to finished goods.(Omit the “$” sign in your response.)
(5)
Prepare journal entries dated October 31 to record its October activities for sales.(Omit the “$” sign in your response.)
2.
Exercise 16-8 Computing equivalent units of production-weighted average L.O. C2
During April, the production department of a process manufacturing system completed a number of units of a product and transferred them to finished goods. Of these transferred units, 37,500 were in process in the production department at the beginning of April and 150,000 were started and completed in April. April’s beginning inventory units were 60% complete with respect to materials and 40% complete with respect to labor. At the end of April, 51,250 additional units were in process in the production department and were 80% complete with respect to materials and 30% complete with respect to labor.
1.
Compute the number of units transferred to finished goods.
Number of units
2.
Compute the number of equivalent units with respect to both materials used and labor used in the production department for April using the weighted-average method.
Direct
Materials
Direct Labor
Number of equivalent units
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