Question acct 212 homework 4 chapter 20

29 Jun Question acct 212 homework 4 chapter 20

Question
acct 212 homework 4 chapter 20

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

$

54,000

$

50,000

Goods in process inventory

436,500

516,000

Finished goods inventory

620,000

172,001

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)

2,060,000

Other overhead cost (Other Accounts credited)

100,000

Materials used

Direct

$

209,500

Indirect

54,000

Labor used

Direct

$

1,230,000

Indirect

830,000

Overhead rate as a percent of direct labor

125

%

Sales (on credit)

$

4,000,000

The predetermined overhead rate was computed at the beginning of the year as 125% of direct labor cost.

rev: 11_02_2011
Section Break

Learning Objective: 20-P1 Record the flow of direct materials costs in process cost accounting.

Learning Objective: 20-P4 Record the transfer of completed goods to Finished Goods Inventory and Cost of Goods Sold.

Problem 20-1A Production cost flow and measurement; journal entries L.O. P1, P2, P3, P4

Learning Objective: 20-P2 Record the flow of direct labor costs in process cost accounting.

Difficulty: Medium

Learning Objective: 20-P3 Record the flow of factory overhead costs in process cost accounting.

1.

award:
0 out of
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

$ 902,400 .gif” alt=”incorrect”>

1(b)

Compute the cost of goods sold. (Omit the “$” sign in your response.)

Cost of goods sold

$ 447,999 .gif” alt=”incorrect”>

rev: 10_31_2011
eBook Links (4)

2.

award:
4.55 out of
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.)

2(b)

Prepare journal entry dated May 31 to record the direct materials usage. (Omit the “$” sign in your response.)

2(c)

Prepare journal entry dated May 31 to record the indirect materials usage. (Omit the “$” sign in your response.)

2(d)

Prepare journal entry dated May 31 to record the payroll costs. (Omit the “$” sign in your response.)

2(e)

Prepare journal entry dated May 31 to record the direct labor costs. (Omit the “$” sign in your response.)

2(f)

Prepare journal entry dated May 31 to record the indirect labor costs. (Omit the “$” sign in your response.)

2(g)

Prepare journal entry dated May 31 to record the other overhead costs. (Omit the “$” sign in your response.)

2(h)

Prepare journal entry dated May 31 to record the overhead applied. (Omit the “$” sign in your response.)

2(i)

Prepare journal entry dated May 31 to record the goods transferred from production to finished goods.(Omit the “$” sign in your response.)

2(j)

Prepare journal entry dated May 31 to record the sale of finished goods. (Omit the “$” sign in your response.)

eBook Links (4)

Worksheet

Learning Objective: 20-P1 Record the flow of direct materials costs in process cost accounting.

Learning Objective: 20-P4 Record the transfer of completed goods to Finished Goods Inventory and Cost of Goods Sold.

Problem 20-1A Part 2

Learning Objective: 20-P2 Record the flow of direct labor costs in process cost accounting.

Difficulty: Medium

Learning Objective: 20-P3 Record the flow of factory overhead costs in process cost accounting.

Problem 20-2A Cost per equivalent unit; costs assigned to products L.O. C2, C3

[The following information applies to the questions displayed below.]
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 201,000 units that are 40% complete with respect to labor. Beginning inventory had $437,255 of direct materials and $147,070 of direct labor cost. The direct labor cost added in September is $2,794,330, and the direct materials cost added is $2,926,245.

Section Break

Problem 20-2A Cost per equivalent unit; costs assigned to products L.O. C2, C3

3.

award:
0 out of
2.00 points

Problem 20-2A Part 1

Required:

1(a)

Determine the equivalent units of production with respect to direct labor.

Equivalent units

n/r .gif” alt=”incorrect”>

1(b)

Determine the equivalent units of production with respect to direct materials.

Equivalent units

n/r .gif” alt=”incorrect”>

eBook Links (2)

4.

award:
0 out of
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.)

5.

award:
0 out of
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.)

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.)

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.