Work in Process Account Data for Two Months; Cost of Production Reports

Pittsburgh Aluminum Company uses a process cost system to record the costs of manufacturing rolled aluminum, which consists of the smelting and rolling processes. Materials are entered from smelting at the beginning of the rolling process. The inventory of Work in Process—Rolling on September 1 and debits to the account during September were as follows:

During September, 800 units in process on September 1 were completed, and of the 19,200 units entering the department, all were completed except 1,800 units that were 20% completed. Charges to Work in Process—Rolling for October were as follows:

During October, the units in process at the beginning of the month were completed, and of the 22,100 units entering the department, all were completed except 1,000 units that were 80% completed.

Required:

1. Enter the balance as of September 1 in a four-column account for Work in Process— Rolling. Record the debits and the credits in the account for September. Construct a cost of production report and present computations for determining (a) equivalent units of production for materials and conversion, (b) costs per equivalent unit, (c) cost of goods finished, differentiating between units started in the prior period and units started and finished in September, and (d) work in process inventory. If an amount box does not require an entry, leave it blank.

If an amount is zero, enter in a zero "0". Round cost per unit answers to the nearest cent.

2. Provide the same information for October by recording the October transactions in the four-column work in process account. Construct a cost of production report, and present the October computations (a through d) listed in part (1). If an amount box does not require an entry, leave it blank.

If an amount is zero, enter in a zero "0". Round cost per unit answers to the nearest cent.

3. The cost per equivalent unit for direct materials increased from August to October. The cost per equivalent unit for conversion costs increased from August to October. These changes should be investigated for their underlying causes, and any necessary corrective actions should be taken.

Forest City Casino is interest in determining the percentage of their weekend visitors who spend more than $1,000 at their casino. Based on the sample below, establish a 95% confidence interval for the percentage of weekend customers who spend more than $1,000.

BLANK #1: Is this a question involving mean or proportion? ***ANSWER "MEAN" OR "PROPORTION" (WITHOUT THE QUOTATION MARKS)***

BLANK #2: What is the LOW end of the estimate ***ANSWER TO 2 DECIMALS...FINAL ANSWER IN DOLLARS OR PERCENT FORM (CHOOSE THE APPROPRIATE OPTION FOR YOUR QUESTION)...BE SURE TO INCLUDE UNITS WITH ANSWER...IE. EITHER $12.34 OR 12.34%***

BLANK #3: What is the HIGH end of the estimate ***ANSWER TO 2 DECIMALS...FINAL ANSWER IN DOLLARS OR PERCENT FORM (CHOOSE THE APPROPRIATE OPTION FOR YOUR QUESTION)...BE SURE TO INCLUDE UNITS WITH ANSWER...IE. EITHER $12.34 OR 12.34%***

Rand Medical manufactures lithotripters. Lithotripsy uses shock waves instead of surgery to eliminate kidney stones. Physicians’ Leasing purchased a lithotripter from Rand for $2,300,000 and leased it to Mid-South Urologists Group, Inc., on January 1, 2021. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1)

1. How should this lease be classified by Mid-South Urologists Group and by Physicians' Leasing.

2.Prepare appropriate entries for Mid-South Urologists Group from the beginning of the lease through the second rental payment on April 1, 2021. Adjusting entries are recorded at the end of each fiscal year (December 31). (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Enter your answers in whole dollars and not in the millions of dollars. Round your answers to nearest whole dollars.

Journal entry worksheet

3..Prepare appropriate entries for Mid-South Urologists Group from the beginning of the lease through the second rental payment on April 1, 2021. Adjusting entries are recorded at the end of each fiscal year (December 31). (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Enter your answers in whole dollars and not in the millions of dollars. Round your answers to nearest whole dollars.)

Journal entry worksheet

4.Prepare appropriate entries for Mid-South Urologists Group from the beginning of the lease through the second rental payment on April 1, 2021. Adjusting entries are recorded at the end of each fiscal year (December 31). (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Enter your answers in whole dollars and not in the millions of dollars. Round your answers to nearest whole dollars.

Amber Company produces iron table and chair sets. During October, Amber’s costs were as follows:

Required:

1. Calculate the total cost of purchases for October.

2. Compute the direct materials price variance based on quantity purchased.

3. Calculate the direct materials quantity variance based on quantity used.

4. Compute the standard direct labor rate for October.

5. Compute the direct labor efficiency variance for October.

QUESTION 3                                                                                                             

Eclypso Inc. manufactures a product that passes through two processes: mixing and molding. All manufacturing costs are added uniformly in the mixing department.

Information for the mixing department for October is as follows:

Work in process, October 1:

No. of units (45% complete) 7,200

Direct materials $42,000 Direct labor $50,400

Overhead $14,400

During October, 38,400 units were completed and transferred to the molding department. The following costs were incurred by the mixing department during October:

Direct materials $144,000

Direct labor $192,000

Overhead $ 60,000

By October 31, 3,600 units that were 85% complete remained in the mixing department. Eclypso uses the weighted average method. Which of the following would be Eclypso's cost of goods that was transferred to the molding department during October? (Note: Round your calculation to two decimal places and the final answer to the nearest whole dollar.)

a.$261,050 b.$465,792 c.$310,347 d.$294,000

Accounting Equation

Inspirational Inc. is a motivational consulting business. At the end of its accounting period, October 31, 2017, Inspirational has assets of $5,250,000 and liabilities of $1,600,000. Using the accounting equation and considering each case independently, determine the following amounts:

a. Stockholders' equity as of October 31, 2017.
$

b. Stockholders’ equity as of October 31, 2018, assuming that assets increased by $800,000 and liabilities increased by $330,000 during 2018.
$

c. Stockholders' equity as of October 31, 2018, assuming that assets decreased by $600,000 and liabilities increased by $140,000 during 2018.
$

d. Stockholders' equity as of October 31, 2018, assuming that assets increased by $440,000 and liabilities decreased by $90,000 during 2018.
$

e. Net income (or net loss) during 2018, assuming that as of October 31, 2018, assets were $6,140,000, liabilities were $1,950,000, and no additional common stock was issued or dividends paid.
Net income    $

Inspirational Inc. is a motivational consulting business. At the end of its accounting period, October 31, 2017, Inspirational has assets of $5,250,000 and liabilities of $1,600,000. Using the accounting equation and considering each case independently, determine the following amounts: a. Stockholders' equity as of October 31, 2017. $ 3,650,000 b. Stockholders’ equity as of October 31, 2018, assuming that assets increased by $800,000 and liabilities increased by $330,000 during 2018. $ 4,120,000 c. Stockholders' equity as of October 31, 2018, assuming that assets decreased by $600,000 and liabilities increased by $140,000 during 2018. $ d. Stockholders' equity as of October 31, 2018, assuming that assets increased by $440,000 and liabilities decreased by $90,000 during 2018. $ e. Net income (or net loss) during 2018, assuming that as of October 31, 2018, assets were $6,140,000, liabilities were $1,950,000, and no additional common stock was issued or dividends paid. Net income $

Accounting Equation Inspirational Inc. is a motivational consulting business. At the end of its accounting period, October 31, 2017, Inspirational has assets of $5,250,000 and liabilities of $1,600,000. Using the accounting equation and considering each case independently, determine the following amounts: a. Stockholders' equity as of October 31, 2017. $ b. Stockholders’ equity as of October 31, 2018, assuming that assets increased by $800,000 and liabilities increased by $330,000 during 2018. $ c. Stockholders' equity as of October 31, 2018, assuming that assets decreased by $600,000 and liabilities increased by $140,000 during 2018. $ d. Stockholders' equity as of October 31, 2018, assuming that assets increased by $440,000 and liabilities decreased by $90,000 during 2018. $ e. Net income (or net loss) during 2018, assuming that as of October 31, 2018, assets were $6,140,000, liabilities were $1,950,000, and no additional common stock was issued or dividends paid. Net income $