Hound Havens produces plastic doghouses as part of a continuous process through two departments: Molding and...

Hound Havens produces plastic doghouses as part of a continuous process through two departments: Molding and Finishing. Direct materials and conversion are added throughout the month in both departments, but at different rates. The information presented was compiled at the end of April.

	Molding Department			Finishing Department
Beginning Inventories (on April 1):
Physical units in production carried forward from March 31		2,800			5,000
Costs:
Transferred Molding costs carried forward from March 31				$	125,000
Direct materials costs carried forward from March 31	$	33,340			15,000
Conversion costs carried forward from March 31		11,180			6,000
Current Production (in April):
Units started during April		48,200			?
Units in ending inventories as of April 30		3,400			2,000
Costs:
Molding costs transferred to Finishing during April					?
Direct materials costs incurred in April	$	669,200		$	496,000
Conversion costs incurred in April		521,840			147,600
Percentage of Completion:
Inventories with respect to direct materials on April 1		90	%		30	%
Inventories with respect to conversion on April 1		30			40
Inventories with respect to direct materials on April 30		80	%		25	%
Inventories with respect to conversion on April 30		20			30

Required:

a. Complete the following requirements for the Molding Department.

1. Prepare a schedule showing units started and completed in the Molding Department during April.

2. Compute the equivalent units of direct materials and conversion for the Molding Department in April.

3. Determine the cost per equivalent unit of input resource for the Molding Department during April.

4. Prepare the summary journal entry required to transfer units from the Molding Department to the Finishing Department during April.

5. Compute the costs assigned to ending inventory in the Molding Department on April 30.

b. Complete the following requirements for the Finishing Department.

1. Prepare a schedule showing units started and completed in the Finishing Department during April.

2. Compute the equivalent units of direct materials and conversion for the Finishing Department in April. Direct materials include both those transferred in from the Molding Department and those added by the Finishing Department.

3. Determine the cost per equivalent unit of input resource for the Finishing Department during April.

4. Prepare the summary journal entry required to transfer units from the Finishing Department to Finished Goods Inventory during April.

5. Compute the costs assigned to ending inventory in the Finishing Department on April 30.

Solutions

Expert Solution

1.
Flow of physical units : molding department
units in beginning inventory, April 1	2800
units started in April	48200
units in process during April	51000
units in ending inventory, April	-3400
units transferred to Assembly department in April	47600
units in beginning inventory, April 1	-2800
units started and completed in April	44800

2.
input resources :	direct material	conversion cost
to finish units in process on july 1 :
direct material (2800units required 10% to complete)	280
conversion (2800 units require 70% to complete)		1960
to start and complete 44800 units in july	44800	44800
to start units in process on july 31 :
direct material (3400units 80% complete)	2720
conversion (3400units 20% complete)		680
equivalent units of resources in july	47800	47440

3.
cost per equivalent unit in july	direct material	conversion cost
costs incurred by moulding department in july	669200	496000
equivalent units in April (see part 2)	/ 47800	/ 47440
conversion (6000 equivalent units * $8)	$14	$11

ekkarill92 answered 1 year ago

Next > < Previous

Related Solutions

Sheldon Products produces plastic containers through a blow-molding process. The company uses process costing because its...

Sheldon Products produces plastic containers through a blow-molding process. The company uses process costing because its products are generally homogeneous and are produced in large batches. Mitchell Jackson is the controller at Sheldon Products. It is December 31, 2017, and Jackson is supervising a physical count of all the inventory on hand. He knows it will be a tough year because of a sharp decline in sales near the end of the year. In early December 2017, an earthquake struck...

Wilson Dynamics makes flanges in a continuous process through two departments: Forging and Assembly. All direct...

Wilson Dynamics makes flanges in a continuous process through two departments: Forging and Assembly. All direct materials are added at the beginning of the process in the Forging Department, whereas all direct materials are added at the end of the process in the Assembly Department. Conversion costs are incurred uniformly over time in both departments. As units are completed in the Forging Department, they are transferred to the Assembly Department. The costs associated with the transferred units are included in...

Zia Co. makes flowerpots from recycled plastic in two departments, molding and packaging. At the beginning...

Zia Co. makes flowerpots from recycled plastic in two departments, molding and packaging. At the beginning of the month, the molding department has 3,200 units in inventory, 70% complete as to materials. During the month, the molding department started 24,000 units. At the end of the month, the molding department had 4,800 units in ending inventory, 80% complete as to materials. Units completed in the molding department are transferred into the packaging department. Cost information for the molding department for...

Zia Co. makes flowerpots from recycled plastic in two departments, molding and packaging. At the beginning...

Zia Co. makes flowerpots from recycled plastic in two departments, molding and packaging. At the beginning of the month, the molding department has 4,200 units in inventory, 70% complete as to materials. During the month, the molding department started 29,000 units. At the end of the month, the molding department had 6,300 units in ending inventory, 80% complete as to materials. Units completed in the molding department are transferred into the packaging department. Cost information for the molding department for...

Company A manufactures a high quality plastic pipe I two departments, cooking and molding. Materials are...

Company A manufactures a high quality plastic pipe I two departments, cooking and molding. Materials are introduced at various points during the work in the cooking department. After the cooking is completed, the materials are transferred into the molding department, in which pipe is formed. Materials are accounted for in the cooking department on a pound basis. Conversion cost are incurred evenly during the cooking process. Production data: Pounds in process, May 1: 100% complete as to materials,...

Plastic Molding, Inc. manufacturers plastic molding for automobiles. It’s costing system utilizes two cost categories, direct...

Plastic Molding, Inc. manufacturers plastic molding for automobiles. It’s costing system utilizes two cost categories, direct materials and conversion costs. Each product must pass through the Assembly Department and the Testing Department. Direct materials are added at the beginning of production and conversion costs are allocated evenly throughout production: Data for the Assembly Department for March 2007 are: Work-in-Process, beginning inventory, 60% converted 400 units Units started during March 2,000 units Work-in-Process, ending inventory, 40% converted 200...

Quality Brick Company produces bricks in two processing departments—Molding and Firing. Information relating to the company’s...

Quality Brick Company produces bricks in two processing departments—Molding and Firing. Information relating to the company’s operations in March follows: a. Raw materials were issued for use in production: Molding Department, $29,400; and Firing Department, $4,500. b. Direct labor costs were incurred: Molding Department, $18,900; and Firing Department, $5,100. c. Manufacturing overhead was applied: Molding Department, $22,200; and Firing Department, $36,800. d. Unfired, molded bricks were transferred from the Molding Department to the Firing Department. According to the company's process...

Quality Brick Company produces bricks in two processing departments—Molding and Firing. Information relating to the company’s...

Quality Brick Company produces bricks in two processing departments—Molding and Firing. Information relating to the company’s operations in March follows: Raw materials used in production: Molding Department, $26,900; and Firing Department, $4,000. Direct labor costs incurred: Molding Department, $17,000; and Firing Department, $4,500. Manufacturing overhead was applied: Molding Department, $22,200; and Firing Department, $36,300. Unfired, molded bricks were transferred from the Molding Department to the Firing Department. According to the company’s process costing system, the cost of the unfired, molded...

Quality Brick Company produces bricks in two processing departments—Molding and Firing. Information relating to the company’s...

Quality Brick Company produces bricks in two processing departments—Molding and Firing. Information relating to the company’s operations in March follows: a. Raw materials were issued for use in production: Molding Department, $23,000; and Firing Department, $8,000. b. Direct labor costs were incurred: Molding Department, $12,000; and Firing Department, $7,000. c. Manufacturing overhead was applied: Molding Department, $25,000; and Firing Department, $37,000. d. Unfired, molded bricks were transferred from the Molding Department to the Firing Department. According to the company's process...

Quality Brick Company produces bricks in two processing departments—Molding and Firing. Information relating to the company’s...

Quality Brick Company produces bricks in two processing departments—Molding and Firing. Information relating to the company’s operations in March follows: Raw materials used in production: Molding Department, $26,100; and Firing Department, $4,300. Direct labor costs incurred: Molding Department, $19,900; and Firing Department, $4,700. Manufacturing overhead was applied: Molding Department, $23,100; and Firing Department, $36,200. Unfired, molded bricks were transferred from the Molding Department to the Firing Department. According to the company’s process costing system, the cost of the unfired, molded...

Subjects