Solution manual cost accounting 14e by carter ch06

To download more slides, ebook, solutions and test bank, visit http://downloadslide.blogspot.com CHAPTER DISCUSSION QUESTIONS Q6-1 The basic objective of process costing is to determine the costs of the products manufactured by the company Determining the cost of the products manufactured is necessary in order to properly cost ending inventories for external reporting purposes (i.e., reporting to creditors and owners of the company, the SEC, and the IRS) and to evaluate the profitability of the manufacturing activity In order to cost products, the costs must be determined for materials, labor, and factory overhead used to process each unit of product through each department Q6-2 The products manufactured within a department (or cost center) during the period can be heterogeneous if job order costing is used, but must be homogeneous if process costing is used In job order costing, products are accounted for in batches The cost of each unit of product manufactured on a job is determined by dividing the total cost charged to the job by the number of units produced on the job Since the manufacturing cost of each job is accounted for separately, accurate and useful product cost can be determined even when the products manufactured on different jobs are substantially different By contrast, in process costing, all manufacturing costs are charged to the department, and the unit cost is determined by dividing the cost charged to the department by the number of units produced As a consequence, the units of product manufactured within a department must be essentially alike in order for the cost allocated to each unit to be meaningful (i.e., to reasonably reflect the actual cost of the resources used to manufacture the product) Q6-3 (a) Process (b) Process, unless significantly different models are manufactured (c) Process (d) Job order (e) Process (f) Process (g) Job order (h) Process, unless different fabrics are used for different models, in which case the conversion costs may be accounted for using process, but the materials using job order Q6-4 Three product flow formats are: sequential, parallel, and selective Sequential means that the product flows or is manufactured in an unchanging fixed set of operations, going from one department to the next Parallel means that certain operational phases take place simultaneously in other departments and the partially completed units or parts are brought together in subsequent departments Selective refers to the fact that a product does not necessarily move through every department Depending upon the character or shape of the final product, different departments are engaged in completing the desired product Q6-5 Materials Costs—In job order costing, materials requisitions are used and charges are made to jobs; in process costing, charges for materials issued to production are made to departments, with infrequent use of materials requisitions Labor Costs—Time tickets are used in job order costing to accumulate labor costs for each job; in process costing, labor costs are charged to departments, and, therefore, detailed time records are not necessary Factory Overhead—Job order costing requires the use of predetermined rates for charging overhead to jobs; in process costing, actual overhead may be used (However, predetermined rates are often used in order to smooth overhead that is not incurred at the same rate as production activity.) Summarizing Costs—A job order cost sheet is used to accumulate the costs of an order in job order costing; a cost of production report is used in process costing In job order costing, costs are summarized on completion of the job; in process costing, costs charged to the 6-1 To download more slides, ebook, solutions and test bank, visit http://downloadslide.blogspot.com 6-2 department and costs accounted for are summarized in the cost of production report each month (or sometimes each week) Q6-6 Predetermined overhead rates can and should be used if the pattern of overhead cost incurrence does not follow the pattern of production activity Some items of overhead are fixed and not responsive to changes in production activity If production volume varies each month, then predetermined overhead rates should be used Some items of overhead are incurred only at certain times during the year, but benefit production throughout the year (e.g., payroll taxes, insurance, property taxes, vacation pay, etc.) These items can be recorded as prepaid expenses and amortized uniformly to each month if actual overhead is charged to production Alternatively, estimates of such costs can be included in the predetermined overhead rate, and the actual cost charged to overhead when incurred The use of predetermined rates is often simpler than the allocation of actual costs because a single predetermined rate requires only one overhead charge to each department each month In contrast, the capitalization and amortization of each item of actual overhead would require numerous charges each month Q6-7 A cost of production report is an effective monthly (or weekly) summary of the cost of materials, labor, and overhead consumed by each department or cost center, along with a record of the quantity of products manufactured It provides information necessary to cost Chapter products, prepare journal entries to record the transfer of costs between departments, and control costs Q6-8 The sections commonly found in a cost of production report are: (a) a quantity schedule indicating the source and disposition of the units of product, (b) a cost charged to the department section, indicating the cost in total and per unit for the cost transferred in from the preceding department, as well as materials, labor and overhead charged to the department, and (c) a cost accounted for section indicating the amount of cost assigned to the units transferred out of the department, as well as the cost of ending inventory Q6-9 Separate departmental cost of production reports are used to accumulate costs more accurately and to provide more detailed data for cost control purposes than a plant-wide cost of production report could provide In some cases (e.g., a manufacturing plant that has a selective production flow for its products), a plant-wide cost of production report cannot be used Q6-10 An equivalent unit of production is the amount of a resource (e.g., materials, labor, or overhead) that would be required to complete one unit of the product with respect to the cost element being considered The total number of equivalent units, with respect to a particular element of cost, represents the number of units of the product that could have been completed with the resources used during the period To download more slides, ebook, solutions and test bank, visit http://downloadslide.blogspot.com Chapter 6-3 EXERCISES E6-1 (1) Equivalent units transferred out Equivalent units in ending inventory: Cost from preceding department (100% × 5,000) Materials (100% × 5,000) Labor (80% × 5,000) Factory overhead (60% × 5,000) Total equivalent units (2) Cost in beginning inventory Cost added during current period Total cost to be accounted for Divided by total equivalent units Cost per equivalent unit Cost from Preceding Department 20,000 Materials Labor Factory Overhead 20,000 20,000 20,000 5,000 5,000 4,000 25,000 Cost from Preceding Department $40,000 $40,000 25,000 $ 1.60 25,000 24,000 Materials Labor $15,000 $15,000 25,000 $ 60 E6-2 Work in Process—Department X Work in Process—Department Y Materials $ 9,600 $ 9,600 24,000 $ 40 3,000 23,000 Factory Overhead $16,330 $16,330 23,000 $ 71 50,000 40,000 90,000 Work in Process—Department X Work in Process—Department Y Payroll 80,000 70,000 Work in Process—Department X Work in Process—Department Y Factory Overhead 180,000 70,000 Work in Process—Department Y Work in Process—Department X 300,000 Finished Goods Inventory Work in Process—Department Y 448,000 150,000 250,000 300,000 448,000 To download more slides, ebook, solutions and test bank, visit http://downloadslide.blogspot.com 6-4 E6-3 Chapter Tyndol Fabricators Inc Cutting and Forming Department Cost of Production Report For November Quantity Schedule Beginning inventory Started in process this period Transferred to Assembling Department Ending Inventory Materials Labor 75% 40% Overhead 25% Quantity 800 3,200 4,000 3,400 600 4,000 Cost Charged to Department Beginning inventory: Materials Labor Factory overhead Total cost in beginning inventory Total Cost $ 17,923 2,352 3,800 $ 24,075 Equivalent Units* Unit Cost** Cost added during current period: Materials Labor Factory overhead Total cost added during current period Total cost charged to department $ 68,625 14,756 29,996 $113,377 $137,452 3,850 3,640 3,550 $22.48 4.70 9.52 Cost Accounted for as Follows Transferred to Assembling Department Work in Process, ending inventory: Materials Labor Factory overhead Total cost accounted for Units 3,400 600 600 600 $36.70 % Complete Unit Cost 100% $36.70 75% 40% 25% $22.48 4.70 9.52 Total Cost $124,780 $10,116 1,128 1,428 12,672 $137,452 *Total number of equivalent units required in the cost accounted for section determined as follows: Equivalent units transferred out Equivalent units in ending inventory Total equivalent units Materials 3,400 450 3,850 Labor 3,400 240 3,640 Overhead 3,400 150 3,550 ** Total cost (i.e., the cost in beginning inventory plus the cost added during the current period) divided by the total number of equivalent units required in the cost accounted for section To download more slides, ebook, solutions and test bank, visit http://downloadslide.blogspot.com Chapter E6-4 6-5 Tokyo Manufacturing Company Molding Department Cost of Production Report For August Quantity Schedule Beginning inventory Started in process this period Transferred to Finishing Department Ending inventory Materials 75% Labor 25% Overhead 25% Quantity 1,000 9,000 10,000 9,200 800 10,000 Cost Charged to Department Beginning inventory: Materials Labor Factory overhead Total cost in beginning inventory Total Cost $ 4,120 522 961 $ 5,603 Equivalent Units* Unit Cost** Cost added during current period: Materials Labor Factory overhead $39,980 12,638 18,779 9,800 9,400 9,400 $4.50 1.40 2.10 Total cost added during current period Total cost charged to department $71,397 $77,000 $8.00 % Complete Unit Cost 100% $8.00 Total Cost $73,600 Cost Accounted for as Follows Transferred to Finishing Department Work in Process, ending inventory: Materials Labor Factory overhead Total cost accounted for Units 9,200 800 800 800 75% 25% 25% $4.50 1.40 2.10 $2,700 280 420 3,400 $77,000 *Total number of equivalent units required in the cost accounted for section determined as follows: Equivalent units transferred out Equivalent units in ending inventory Total equivalent units Materials 9,200 600 9,800 Labor 9,200 200 9,400 Overhead 9,200 200 9,400 ** Total cost (i.e., the cost in beginning inventory plus the cost added during the current period) divided by the total number of equivalent units required in the cost accounted for section To download more slides, ebook, solutions and test bank, visit http://downloadslide.blogspot.com 6-6 E6-5 Chapter Stanislov Corporation Forming Department Cost of Production Report For September Quantity Schedule Beginning inventory Received from Cutting Department Transferred to Painting Department Ending inventory Materials 60% Labor 30% Overhead 30% Quantity 1,400 4,600 6,000 5,000 1,000 6,000 Cost Charged to Department Beginning inventory: Cost from preceding department Materials Labor Factory overhead Total cost in beginning inventory Total Cost $ 21,120 5,880 2,614 5,228 $ 34,842 Equivalent Units* Unit Cost** Cost added during current period: Cost from preceding department Materials Labor Factory overhead Total cost added during current period Total cost charged to department $ 68,280 20,440 17,526 35,052 $141,298 $176,140 6,000 5,600 5,300 5,300 $14.90 4.70 3.80 7.60 Cost Accounted for as Follows Transferred to Painting Department Work in Process, ending inventory: Cost from preceding department Materials Labor Factory overhead Total cost accounted for Units 5,000 % Complete 100% Unit Cost $31.00 1,000 1,000 1,000 1,000 100% 60% 30% 30% $14.90 4.70 3.80 7.60 $31.00 Total Cost $155,000 $14,900 2,820 1,140 2,280 21,140 $176,140 *Total number of equivalent units required in the cost accounted for section determined as follows: Equivalent units transferred out Equivalent units in ending inventory Total equivalent units Prior Dept Cost Materials 5,000 5,000 1,000 600 6,000 5,600 Labor 5,000 300 5,300 Overhead 5,000 300 5,300 ** Total cost (i.e., the cost in beginning inventory plus the cost added during the current period) divided by the total number of equivalent units required in the cost accounted for section To download more slides, ebook, solutions and test bank, visit http://downloadslide.blogspot.com Chapter E6-6 6-7 Sonneli Corporation Assembly Department Cost of Production Report For February Quantity Schedule Beginning inventory Received from Cutting Department Transferred to Finished Goods Ending inventory Materials 80% Labor 60% Cost Charged to Department Beginning inventory: Overhead 60% Total Cost Cost from preceding department Materials Labor Factory overhead Total cost in beginning inventory $11,800 4,000 1,200 2,400 $19,400 Cost added during current period: Cost from preceding department Materials Labor Factory overhead Total cost added during current period Total cost charged to department $63,200 21,200 17,660 35,320 $137,380 $156,780 Cost Accounted for as Follows Transferred to Finished Goods Work in Process, ending inventory: Cost from preceding department Materials Labor Factory overhead Total cost accounted for Units 2,000 500 500 500 500 Quantity 400 2,100 2,500 2,000 500 2,500 Equivalent Units* Unit Cost** 2,500 2,400 2,300 2,300 $30.00 10.50 8.20 16.40 $65.10 % Complete Unit Cost 100% $65.10 100% 80% 60% 60% $30.00 10.50 8.20 16.40 Total Cost $130,200 $15,000 4,200 2,460 4,920 26,580 $156,780 *Total number of equivalent units required in the cost accounted for section determined as follows: Equivalent units transferred out Equivalent units in ending inventory Total equivalent units Prior Dept Cost Materials 2,000 2,000 500 400 2,500 2,400 Labor 2,000 300 2,300 Overhead 2,000 300 2,300 ** Total cost (i.e., the cost in beginning inventory plus the cost added during the current period) divided by the total number of equivalent units required in the cost accounted for section To download more slides, ebook, solutions and test bank, visit http://downloadslide.blogspot.com 6-8 E6-7 Chapter Saleri Manufacturing Corporation Forming Department Cost of Production Report For June Quantity Schedule Beginning inventory Received from Cutting Department Transferred to Finishing Department Ending inventory Material A 100% Material B 0% Labor 30% Overhead 30% Quantity 600 3,900 4,500 4,100 400 4,500 Cost Charged to Department Beginning inventory: Cost from preceding department Material A Material B Labor Factory overhead Total cost in beginning inventory Total Cost $ 4,422 2,805 1,250 1,875 10,352 Equivalent Units* Unit Cost** Cost added during current period: Cost from preceding department Material A Material B Labor Factory overhead Total cost added during current period Total cost charged to department $ 29,328 19,695 10,250 15,630 23,445 $ 98,348 $108,700 4,500 4,500 4,100 4,220 4,220 $ 7.50 5.00 2.50 4.00 6.00 Cost Accounted for as Follows Transferred to Finishing Department Work in Process, ending inventory: Cost from preceding department Material A Material B Labor Factory overhead Total cost accounted for Units 4,100 400 400 400 400 400 $25.00 % Complete Unit Cost 100% $25.00 100% 100% 0% 30% 30% $7.50 5.00 2.50 4.00 6.00 Total Cost $102,500 $3,000 2,000 480 720 6,200 $108,700 *Total number of equivalent units required in the cost accounted for section determined as follows: Equivalent units transferred out Equivalent units in ending inventory Total equivalent units Prior Dept Cost Material A 4,100 4,100 400 400 4,500 4,500 Material B 4,100 4,100 Labor 4,100 120 4,220 Overhead 4,100 120 4,220 ** Total cost (i.e., the cost in beginning inventory plus the cost added during the current period) divided by the total number of equivalent units required in the cost accounted for section To download more slides, ebook, solutions and test bank, visit http://downloadslide.blogspot.com Chapter E6-8 6-9 Canoli Cola Company Carbonation Department Cost of Production Report For October Quantity Schedule Beginning inventory Received from Syrup Department Added to process in Carbonation Department Transferred to Bottling Department Ending inventory Materials 100% Cost Charged to Department Beginning inventory: Cost from preceding department Materials Labor Factory overhead Total cost in beginning inventory Cost added during current period: Cost from preceding department Materials Labor Factory overhead Total cost added during current period Total cost charged to department Cost Accounted for as Follows Transferred to Bottling Department Work in Process, ending inventory: Cost from preceding department Materials Labor Factory overhead Total cost accounted for Units 7,800 1,200 1,200 1,200 1,200 Labor 25% Overhead 25% 7,800 1,200 9,000 Total Cost $ 1,120 140 65 120 $ 1,445 Equivalent Units* Unit Cost** $ 9,680 1,210 1,960 3,120 $15,970 $17,415 9,000 9,000 8,100 8,100 $1.20 15 25 40 $2.00 % Complete Unit Cost 100% $2.00 100% 100% 25% 25% Quantity 1,000 2,000 6,000 9,000 $1.20 15 25 40 Total Cost $15,600 $1,440 180 75 120 1,815 $17,415 *Total number of equivalent units required in the cost accounted for section determined as follows: Equivalent units transferred out Equivalent units in ending inventory Total equivalent units Prior Dept Cost Materials 7,800 7,800 1,200 1,200 9,000 9,000 Labor 7,800 300 8,100 Overhead 7,800 300 8,100 ** Total cost (i.e., the cost in beginning inventory plus the cost added during the current period) divided by the total number of equivalent units required in the cost accounted for section To download more slides, ebook, solutions and test bank, visit http://downloadslide.blogspot.com 6-10 E6-9 Chapter Menezes Chemical Company Blending Department Cost of Production Report For March Quantity Schedule Beginning inventory Received from Refining Department Added to process in Blending Department Transferred to Finishing Department Ending inventory Materials 100% Cost Charged to Department Beginning inventory: Cost from preceding department Materials Labor Factory overhead Total cost in beginning inventory Cost added during current period: Cost from preceding department Materials Labor Factory overhead Total cost added during current period Total cost charged to department Cost Accounted for as Follows Transferred to Finishing Department Work in Process, ending inventory: Cost from preceding department Materials Labor Factory overhead Total cost accounted for Units 26,000 4,000 4,000 4,000 4,000 Labor Overhead 80% 90% 26,000 4,000 30,000 Total Cost $4,750 2,415 180 787 $8,112 Equivalent Units* Unit Cost** $25,250 12,885 2,740 8,113 $48,988 $57,100 30,000 30,000 29,200 29,600 $1.00 51 10 30 $1.91 % Complete Unit Cost 100% $1.91 100% 100% 80% 90% Quantity 5,000 20,000 5,000 30,000 $1.00 51 10 30 Total Cost $49,660 $4,000 2,040 320 1,080 7,440 $57,100 *Total number of equivalent units required in the cost accounted for section determined as follows: Equivalent units transferred out Equivalent units in ending inventory Total equivalent units Prior Dept Cost Materials 26,000 26,000 4,000 4,000 30,000 30,000 Labor 26,000 3,200 29,200 Overhead 26,000 3,600 29,600 ** Total cost (i.e., the cost in beginning inventory plus the cost added during the current period) divided by the total number of equivalent units required in the cost accounted for section To download more slides, ebook, solutions and test bank, visit http://downloadslide.blogspot.com Chapter 6-29 P6-5 (1) Hi-tech Chemical Corporation Refining Department Cost of Production Report For March Quantity Schedule Beginning inventory Started in process this period Transferred to Blending Department Ending inventory Materials Labor 100% 75% Cost Charged to Department Beginning inventory: Materials Labor Factory overhead Total cost in beginning inventory Cost added during current period: Materials Labor Factory overhead Total cost added during current period Total cost charged to department Cost Accounted for as Follows Transferred to Blending Department Work in Process, ending inventory: Materials Labor Factory overhead Total cost accounted for Units 7,000 1,000 1,000 1,000 Overhead Total Cost $728 30 60 $818 Equivalent Units* $7,272 1,520 2,940 $11,732 $12,550 8,000 7,750 7,500 $1.00 20 40 7,000 1,000 8,000 50% % Complete Unit Cost 100% $1.60 100% 75% 50% Quantity 800 7,200 8,000 Unit Cost** $ 1.00 20 40 $ 1.60 Total Cost 11,200 $1,000 150 200 1,350 $12,550 *Total number of equivalent units required in the cost accounted for section determined as follows: Equivalent units transferred out Equivalent units in ending inventory Total equivalent units Materials 7,000 1,000 8,000 Labor 7,000 750 7,750 Overhead 7,000 500 7,500 ** Total cost (i.e., the cost in beginning inventory plus the cost added during the current period) divided by the total number of equivalent units required in the cost accounted for section To download more slides, ebook, solutions and test bank, visit http://downloadslide.blogspot.com 6-30 Chapter P6-5 (Continued) Hi-tech Chemical Corporation Blending Department Cost of Production Report For March Quantity Schedule Beginning inventory Received from Refining Department Added to process in Blending Department Transferred to Finished Goods Ending inventory Materials 80% Cost Charged to Department Beginning inventory: Cost from preceding department Materials Labor Factory overhead Total cost in beginning inventory Cost added during current period: Cost from preceding department Materials Labor Factory overhead Total cost added during current period Total cost charged to department Labor 40% Overhead 40% Quantity 1,400 7,000 1,800 10,200 9,200 1,000 10,200 Total Cost $ 1,754 620 68 160 $ 2,602 Equivalent Units* Unit Cost** $11,200 4,380 3,100 5,600 $24,280 $26,882 10,200 10,000 9,600 9,600 $1.27 50 33 60 $2.70 To download more slides, ebook, solutions and test bank, visit http://downloadslide.blogspot.com Chapter 6-31 P6-5 (Concluded) Cost Accounted for as Follows Transferred to Finished Goods Work in Process, ending inventory: Cost from preceding department Materials Labor Factory overhead Total cost accounted for Units 9,200 1,000 1,000 1,000 1,000 % Complete Unit Cost 100% $2.70 100% 80% 40% 40% $1.27 50 33 60 Total Cost $24,840 $1,270 400 132 240 2,042 $26,882 *Total number of equivalent units required in the cost accounted for section determined as follows: Equivalent units transferred out Equivalent units in ending inventory Total equivalent units Prior Dept Cost Materials 9,200 9,200 1,000 800 10,200 10,000 Labor 9,200 400 9,600 Overhead 9,200 400 9,600 ** Total cost (i.e., the cost in beginning inventory plus the cost added during the current period) divided by the total number of equivalent units required in the cost accounted for section (2) Work in Process—Refining Department Work in Process—Blending Department Materials 7,272 4,380 Work in Process—Refining Department Work in Process—Blending Department Payroll 1,520 3,100 Work in Process—Refining Department Work in Process—Blending Department Applied Factory Overhead 2,940 5,600 Work in Process—Blending Department Work in Process—Refining Department 11,200 Finished Goods Inventory Work in Process—Blending Department 24,840 11,652 4,620 8,540 11,200 24,840 To download more slides, ebook, solutions and test bank, visit http://downloadslide.blogspot.com 6-32 Chapter P6-6 APPENDIX (1) Upton Manufacturing Company Cutting Department Cost of Production Report For October Quantity Schedule Beginning inventory Started in process this period Transferred to Assembly Department Ending inventory Materials 90% 100% Labor 40% 80% Cost Charged to Department Beginning inventory: Materials Labor Factory overhead Total cost in beginning inventory Cost added during current period: Materials Labor Factory overhead Total cost added during current period Total cost charged to department Cost Accounted for as Follows Transferred to Assembly Department: Beginning inventory Cost to complete: Materials Labor Factory overhead Started and completed this period Total cost transferred to Assembly Department Work in Process, ending inventory: Materials Labor Factory overhead Total cost accounted for Units Overhead 20% 100% Quantity 1,000 9,000 10,000 8,500 1,500 10,000 Total Cost $8,010 1,750 790 $ 10,550 Equivalent Units* Unit Cost** $ 81,900 18,600 39,200 $139,700 $150,250 9,100 9,300 9,800 $ 9.00 2.00 4.00 $15.00 Current % Unit Cost Total Cost $10,550 1,000 1,000 1,000 7,500 10% 60% 80% 100% $ 9.00 2.00 4.00 15.00 900 1,200 3,200 $ 15,850 112,500 $128,350 1,500 1,500 1,500 100% 80% 100% $ 9.00 2.00 4.00 $13,500 2,400 6,000 21,900 $150,250 To download more slides, ebook, solutions and test bank, visit http://downloadslide.blogspot.com Chapter 6-33 P6-6 APPENDIX (Continued) * Number of equivalent units of cost added during the current period determined as follows: To complete beginning inventory Started and completed this period Ending inventory Total equivalent units Materials 100 7,500 1,500 9,100 Labor 600 7,500 1,200 9,300 Overhead 800 7,500 1,500 9,800 ** Cost added during the current period divided by the number of equivalent units of cost added during the current period To download more slides, ebook, solutions and test bank, visit http://downloadslide.blogspot.com 6-34 Chapter P6-6 APPENDIX (Continued) Upton Manufacturing Company Assembly Department Cost of Production Report For October Quantity Schedule Beginning inventory Received from Cutting Department Transferred to Finished Goods Inventory Ending inventory Materials 75% 60% Labor 60% 40% Cost Charged to Department Beginning inventory: Cost from preceding department Materials Labor Factory overhead Total cost in beginning inventory Cost added during current period: Cost from preceding department Materials Labor Factory overhead Total cost added during current period Total cost charged to department Cost Accounted for as Follows Transferred to Finished Goods: Beginning inventory Cost to complete: Materials Labor Factory overhead Started and completed this period Total cost transferred to Finished Goods Work in Process, ending inventory: Cost from preceding department Materials Labor Factory overhead Total cost accounted for Units Overhead 60% 40% Quantity 2,000 8,500 10,500 9,500 1,000 10,500 Total Cost $ 4,000 400 800 1,600 $ 6,800 Equivalent Units* Unit Cost** $128,350 30,100 21,315 30,015 $209,780 $216,580 8,500 8,600 8,700 8,700 $15.10 3.50 2.45 3.45 $24.50 Current % Unit Cost Total Cost $ 6,800 2,000 2,000 2,000 7,500 25% 40% 40% 100% $ 3.50 2.45 3.45 24.50 1,750 1,960 2,760 $ 13,270 183,750 $197,020 1,000 1,000 1,000 1,000 100% 60% 40% 40% $15.10 3.50 2.45 3.45 $15,100 2,100 980 1,380 19,560 $216,580 To download more slides, ebook, solutions and test bank, visit http://downloadslide.blogspot.com Chapter 6-35 P6-6 APPENDIX (Concluded) *Number of equivalent units of cost added during the current period determined as follows: To complete beginning inventory Started and completed this period Ending inventory Total equivalent units Prior Dept Cost Materials 500 7,500 7,500 1,000 600 8,500 8,600 Labor 800 7,500 400 8,700 Overhead 800 7,500 400 8,700 ** Cost added during the current period divided by the number of equivalent units of cost added during the current period (2) Work in Process—Cutting Department Work in Process—Assembly Department Materials 81,900 30,100 Work in Process—Cutting Department Work in Process—Assembly Department Payroll 18,600 21,315 Work in Process—Cutting Department Work in Process—Assembly Department Applied Factory Overhead 39,200 30,015 Work in Process—Assembly Department Work in Process—Cutting Department 128,350 Finished Goods Inventory Work in Process—Assembly Department 197,020 112,000 39,915 69,215 128,350 197,020 To download more slides, ebook, solutions and test bank, visit http://downloadslide.blogspot.com 6-36 P6-7 APPENDIX (1) Chapter Felicia Manufacturing Company Fabricating Department Cost of Production Report For August Quantity Schedule Beginning inventory Started in process this period Transferred to Finishing Department Ending inventory Materials 100% 100% Labor 40% 80% Cost Charged to Department Beginning inventory: Materials Labor Factory overhead Total cost in beginning inventory Cost added during current period: Materials Labor Factory overhead Total cost added during current period Total cost charged to department Overhead 80% 90% Quantity 400 1,200 1,600 1,100 500 1,600 Total Cost $ 29,280 1,900 11,800 $ 42,980 Equivalent Units* $90,000 16,080 46,740 $152,820 $195,800 1,200 1,340 1,230 Unit Cost** $ 75.00 12.00 38.00 $125.00 To download more slides, ebook, solutions and test bank, visit http://downloadslide.blogspot.com Chapter 6-37 P6-7 APPENDIX (Continued) Cost Accounted for as Follows Transferred to Finishing Department: Beginning inventory Cost to complete: Materials Labor Factory overhead Started and completed this period Total cost transferred to Finishing Department Work in Process, ending inventory: Materials Labor Factory overhead Total cost accounted for Units Current % Unit Cost Total Cost $42,980 400 400 400 700 0% 60% 20% 100% $ 75.00 12.00 38.00 125.00 2,880 3,040 $ 48,900 87,500 $136,400 500 500 500 100% 80% 90% $ 75.00 12.00 38.00 $37,500 4,800 17,100 59,400 $195,800 *Number of equivalent units of cost added during the current period determined as follows: To complete beginning inventory Started and completed this period Ending inventory Total equivalent units Materials 700 500 1,200 Labor 240 700 400 1,340 Overhead 80 700 450 1,230 ** Cost added during the current period divided by the number of equivalent units of cost added during the current period To download more slides, ebook, solutions and test bank, visit http://downloadslide.blogspot.com 6-38 Chapter P6-7 APPENDIX (Continued) Felicia Manufacturing Company Finishing Department Cost of Production Report For August Quantity Schedule Beginning inventory Received from Fabricating Department Transferred to Finished Goods Inventory Ending inventory Materials 40% 100% Labor 20% 60% Cost Charged to Department Beginning inventory: Cost from preceding department Materials Labor Factory overhead Total cost in beginning inventory Cost added during current period: Cost from preceding department Materials Labor Factory overhead Total cost added during current period Total cost charged to department Cost Accounted for as Follows Transferred to Finished Goods: Beginning inventory Cost to complete: Materials Labor Factory overhead Started and completed this period Total cost transferred to Finished Goods Work in Process, ending inventory: Cost from preceding department Materials Labor Factory overhead Total cost accounted for Units Overhead 20% 60% Quantity 600 1,100 1,700 1,300 400 1,700 Total Cost $ 74,000 230 1,600 2,520 $ 78,350 Equivalent Units* $136,400 2,920 19,880 28,400 $187,600 $265,950 1,100 1,460 1,420 1,420 Unit Cost** $ 124.00 2.00 14.00 20.00 $ 160.00 Current % Unit Cost Total Cost $78,350 600 600 600 700 60% 80% 80% 100% $ 2.00 14.00 20.00 160.00 720 6,720 9,600 $ 95,390 112,000 $207,390 400 400 400 400 100% 100% 60% 60% $124.00 2.00 14.00 20.00 $49,600 800 3,360 4,800 58,560 $265,950 To download more slides, ebook, solutions and test bank, visit http://downloadslide.blogspot.com Chapter 6-39 6-7 APPENDIX (Concluded) *Number of equivalent units of cost added during the current period determined as follows: To complete beginning inventory Started and completed this period Ending inventory Total equivalent units Prior Dept Cost Materials 360 700 700 400 400 1,100 1,460 Labor 480 700 240 1,420 Overhead 480 700 240 1,420 ** Cost added during the current period divided by the number of equivalent units of cost added during the current period (2) Work in Process—Fabricating Department Work in Process—Finishing Department Materials 90,000 2,920 Work in Process—Fabricating Department Work in Process—Finishing Department Payroll 16,080 19,880 Work in Process—Fabricating Department Work in Process—Finishing Department Applied Factory Overhead 46,740 28,400 Work in Process—Finishing Department Work in Process—Fabricating Department 136,400 Finished Goods Inventory Work in Process-Finishing Department 207,390 92,920 35,960 75,140 136,400 207,390 To download more slides, ebook, solutions and test bank, visit http://downloadslide.blogspot.com 6-40 P6-8 APPENDIX (1) Chapter Tatanach Beverage Company Mashing Department Cost of Production Report For September Quantity Schedule Beginning inventory Started in process this period Transferred to Blending Department Ending inventory Materials 90% 60% Labor 60% 40% Overhead 30% 20% Quantity 600 3,000 3,600 3,100 500 3,600 Cost Charged to Department Beginning inventory: Materials Labor Factory overhead Total cost in beginning inventory Total Cost $ 1,088 172 172 $ 1,432 Equivalent Units* Unit Cost** Cost added during current period: Materials Labor Factory overhead Total cost added during current period Total cost charged to department $ 6,006 1,470 3,020 $10,496 $11,928 2,860 2,940 3,020 $2.10 50 1.00 $3.60 To download more slides, ebook, solutions and test bank, visit http://downloadslide.blogspot.com Chapter 6-41 P6-8 APPENDIX (Continued) Cost Accounted for as Follows Transferred to Blending Department: Beginning inventory Cost to complete: Materials Labor Factory overhead Started and completed this period Total cost transferred to Blending Department Work in Process, ending inventory: Materials Labor Factory overhead Total cost accounted for Units Current % Unit Cost Total Cost $1,432 600 600 600 2,500 10% 40% 70% 100% $2.10 50 1.00 3.60 126 120 420 $ 2,098 9,000 $11,098 500 500 500 60% 40% 20% $2.10 50 1.00 $ 630 100 100 830 $11,928 *Number of equivalent units of cost added during the current period determined as follows: To complete beginning inventory Started and completed this period Ending inventory Total equivalent units Materials 60 2,500 300 2,860 Labor 240 2,500 200 2,940 Overhead 420 2,500 100 3,020 ** Cost added during the current period divided by the number of equivalent units of cost added during the current period To download more slides, ebook, solutions and test bank, visit http://downloadslide.blogspot.com 6-42 Chapter P6-8 APPENDIX (Continued) Tatanach Beverage Company Blending Department Cost of Production Report For September Quantity Schedule Beginning inventory Received from Mashing Department Added to process in Blending Department Transferred to Finished Goods Inventory Ending inventory Materials 50% 100% Cost Charged to Department Beginning inventory: Cost from preceding department Materials Labor Factory overhead Total cost in beginning inventory Cost added during current period: Cost from preceding department Materials Labor Factory overhead Total cost added during current period Total cost charged to department Cost Accounted for as Follows Transferred to Finished Goods: Beginning inventory Cost to complete: Materials Labor Factory overhead Started and completed this period Total cost transferred to Finished Goods Work in Process, ending inventory: Cost from preceding department Materials Labor Factory overhead Total cost accounted for Units Labor 20% 60% Overhead 20% 60% Quantity 1,000 3,100 3,100 7,200 6,400 800 7,200 Total Cost $ 1,770 100 55 74 $ 1,999 Equivalent Units* Unit Cost** $11,098 1,407 2,004 2,672 $17,181 $19,180 6,200 6,700 6,680 6,680 $1.79 21 30 40 $2.70 Current % Unit Cost Total Cost $1,999 1,000 1,000 1,000 5,400 50% 80% 80% 100% $ 21 30 40 2.70 105 240 320 $ 2,664 14,580 $17,244 800 800 800 800 100% 100% 60% 60% $1.79 21 30 40 $1,432 168 144 192 1,936 $19,180 To download more slides, ebook, solutions and test bank, visit http://downloadslide.blogspot.com Chapter 6-43 P6-8 APPENDIX (Concluded) *Number of equivalent units of cost added during the current period determined as follows: To complete beginning inventory Started and completed this period Ending inventory Total equivalent units Prior Dept Cost Materials 500 5,400 5,400 800 800 6,200 6,700 Labor 800 5,400 480 6,680 Overhead 800 5,400 480 6,680 ** Cost added during the current period divided by the number of equivalent units of cost added during the current period (2) Work in Process—Mashing Department Work in Process—Blending Department Materials 6,006 1,407 Work in Process—Mashing Department Work in Process—Blending Department Payroll 1,470 2,004 Work in Process—Mashing Department Work in Process—Blending Department Applied Factory Overhead 3,020 2,672 Work in Process—Blending Department Work in Process—Mashing Department 11,098 Finished Goods Inventory Work in Process—Blending Department 17,244 7,413 3,474 5,692 11,098 17,244 ... units (2) Cost in beginning inventory Cost added during current period Total cost to be accounted for Divided by total equivalent units Cost per equivalent unit Cost from Preceding... 150 3,550 ** Total cost (i.e., the cost in beginning inventory plus the cost added during the current period) divided by the total number of equivalent units required in the cost accounted for... 200 9,400 ** Total cost (i.e., the cost in beginning inventory plus the cost added during the current period) divided by the total number of equivalent units required in the cost accounted for