Questions
Weighted Average Process Costing Minot Processing Company manufactures one product on a continuous basis in two...

Weighted Average Process Costing
Minot Processing Company manufactures one product on a continuous basis in two departments, Processing and Finishing. All materials are added at the beginning of work on the product in the Processing Department. During November 2017, the following events occurred in the Processing Department:

Units started 17,000 units
Units completed and transferred to Finishing Department 14,500 units
Costs assigned to processing
Raw materials (one unit of raw materials for each unit of product started) $296,200
Manufacturing supplies used 18,000
Direct labor costs incurred 103,000
Supervisors' salaries 12,000
Other production labor costs 14,000
Depreciation on equipment 6,000
Other production costs 18,000


Additional information follows:

  • Minot uses weighted average costing and applies manufacturing overhead to Work-in-Process at the rate of 100 percent of direct labor cost.
  • Ending inventory in the Processing Department consists of 4,500 units that are one-third converted.
  • Beginning inventory contained 2,000 units, one-half converted, with a cost of $27,300 ($17,300 for materials and $10,000 for conversion).

(a) Prepare a cost of production report for the Processing Department for November.

Do not use negative signs with any of your answers.

Cost per equivalent unit in process

(Round answers two decimal places.)

Processing Department

Cost of Production Report

For the Month Ending November 30, 2017
Summary of units in process:
Beginning Answer
Units started Answer
In process Answer
Completed Answer
Ending Answer
Equivalent units in process: Materials Conversion Total
Units completed Answer Answer
Plus equivalent units in ending inventory Answer Answer
Equivalent units in process Answer Answer
Total cost to be accounted for and
cost per equivalent unit in process:
Beginning work-in-process $Answer $Answer $Answer
Current costs Answer Answer Answer
Total cost in process $Answer $Answer $Answer
Equivalent units in process �Answer �Answer
Cost per equivalent unit in process $Answer $Answer $Answer
Accounting for total costs:
Transferred out $Answer
Ending work-in-process:
Materials $Answer
Conversion Answer Answer
Total cost accounted for $Answer

(b) Prepare an analysis of all changes in Work-in-Process.

Work-in-process:
Beginning $Answer
Current manufacturing costs:
Direct materials $Answer
Direct labor Answer
Applied overhead Answer Answer
Total $Answer
Cost of goods manufactured Answer
Ending $Answer


In: Accounting

Hearty Soup Co. uses a process cost system to record the costs of processing soup, which...

Hearty Soup Co. uses a process cost system to record the costs of processing soup, which requires the cooking and filling processes. Materials are entered from the cooking process at the beginning of the filling process. The inventory of Work in Process-Filling on April 1 and debits to the account during April 2016 were as follows:

Bal., 700 units, 30% completed:
Direct materials (700 × $4.6) $3,220
Conversion (700 × 30% × $1.75) 368
$3,588
From Cooking Department, 7,400 units $34,780
Direct labor 8,512
Factory overhead 2,464

During April, 700 units in process on April 1 were completed, and of the 7,400 units entering the department, all were completed except 500 units that were 90% completed.

Charges to Work in Process-Filling for May were as follows:

From Cooking Department, 9,500 units $46,550
Direct labor 12,030
Factory overhead 2,834

During May, the units in process at the beginning of the month were completed, and of the 9,500 units entering the department, all were completed except 400 units that were 35% completed.

Required:
1.
(a) Enter the balance as of April 1, 2016, in a four-column account for Work in Process-Filling. Record the debits and the credits in the account for April.
(b) Construct a cost of production report, and present computations for determining
i. equivalent units of production for materials and conversion.
ii. costs per equivalent unit.*
iii. cost of goods finished, differentiating between units started in the prior period and units started and finished in April.*
iv. work in process inventory.*
* If an amount is zero, enter "0". Round your cost per unit answers to the nearest cent and final answers to the nearest dollar amount.
2.
(a) Provide the same information for May by recording the May transactions in the four-column work in process account.
(b) Construct a cost of production report, and present the May computations (i through iv) listed in part 1(b).
3. Comment on the change in costs per equivalent unit for March through May for direct materials and conversion costs.


Cost of Production Report- April

1(b). Construct a cost of production report, and present computations for determining
i. equivalent units of production for materials and conversion.
ii. costs per equivalent unit.*
iii. cost of goods finished, differentiating between units started in the prior period and units started and finished in April.*
iv. work in process inventory.*
* If an amount is zero, enter "0". Round your cost per unit answers to the nearest cent and final answers to the nearest dollar amount.
HEARTY SOUP CO.
Cost of Production Report-Filling Department
For the Month Ended April 30, 2016
UNITS Whole Units Equivalent Units
Direct Materials Conversion
Units to account for during production:      
Inventory in process, April 1
Received from Milling Department
Total units accounted for by the Filling Department
Units to be assigned costs:
Inventory in process, April 1 (30% completed)
Started and completed in April
Transferred to finished goods in April
Inventory in process, April 30 (90% completed)
Total units to be assigned costs
COSTS Costs
Direct Materials Conversion Total
Cost per equivalent unit:      
Total production costs for April in Filling Department
Total equivalent units ÷ ÷
Cost per equivalent unit
Costs assigned to production:
Inventory in process, April 1
Costs incurred in April
Total costs accounted for by the Filling Department
Cost allocated to completed and
partially completed units:
Inventory in process, April 1 balance
To complete inventory in process, April 1
Cost of completed April 1 work in process
Started and completed in April
Transferred to finished goods in April
Inventory in process, April 30
Total costs assigned by the Filling Department

Cost of Production Report- May

2(b). Construct a cost of production report, and present computations for determining
i. equivalent units of production for materials and conversion
ii. costs per equivalent unit*
iii. cost of goods finished, differentiating between units started in the prior period and units started and finished in April*
iv. work in process inventory.*
* If an amount is zero, enter "0". Round your cost per unit answers to the nearest cent and final answers to the nearest dollar amount.
HEARTY SOUP CO.
Cost of Production Report-Filling Department
For the Month Ended May 31, 2016
UNITS Whole Units Equivalent Units
Direct Materials Conversion
Units charged to production:      
Inventory in process, May 1
Received from Milling Department
Total units accounted for by the Filling Department
Units to be assigned costs:
Inventory in process, May 1 (90% completed)
Started and completed in May
Transferred to finished goods in May
Inventory in process, May 31 (35% completed)
Total units to be assigned costs
COSTS Costs
Direct Materials Conversion Total
Costs per equivalent unit:      
Total costs for May in Filling Department
Total equivalent units ÷ ÷
Cost per equivalent unit
Costs assigned to production:
Inventory in process, May 1
Costs incurred in May
Total costs accounted for by the Filling Department
Costs allocated to completed and
partially completed units:
Inventory in process, May 1 balance
To complete inventory in process, May 1
Cost of completed May 1 work in process
Started and completed in May
Transferred to finished goods in May
Inventory in process, May 31
Total costs assigned by the Filling Department

Final Question:

The cost per equivalent unit for direct materials (increased, decreased) from March to May. The cost per equivalent unit for conversion costs (increased, decreased) from March to May. These changes(should, need not) be investigated for their underlying causes, and any necessary corrective actions should be taken.

In: Accounting

1. Neema bought appliances costing ​$3775 at a store charging 6​% ​add-on interest. She made a...

1. Neema bought appliances costing ​$3775 at a store charging 6​% ​add-on interest. She made a $1000 down payment and agreed to monthly payments over four years. What percent of the original price tag total did the financing​ cost?

The financing cost was _____% of the original price tag total.

2. Use the​ add-on method of calculating interest to find the total interest and the monthly payment of a ​$650 loan for 14 months at 6.1​%.

The total interest is $____

3. How long​ (in years) will it take Michael Garbin to pay off a ​$7000 loan with monthly payments of ​$128.83 if the​ add-on interest rate is 6.1​%?

Michael Garbin would take ____ years to pay off a ​$7000 loan amount.

In: Advanced Math

Six-month call options with strike prices of $20 and $26 cost $4 and $2, respectively. You...

  1. Six-month call options with strike prices of $20 and $26 cost $4 and $2, respectively. You plan to create a bull spread call (Buying a call spread) by trading a total of 100 options. Answer the following questions.?

Total amount of credit or debit:

Maximum amount of loss:

Maximum amount of profit:

Break-even stock price of this spread:

  1. Six-month put options with strike prices of $40 and $45 cost $3 and $5, respectively. You plan to create a bull spread put (Selling a put spread) by trading a total of 300 options?

Total amount of credit or debit:

Maximum amount of loss:

Maximum amount of profit:

Break-even stock price of this spread:

​​​​​​​

In: Finance

The Sanding Department of Quik Furniture Company has the following production and manufacturing cost data for...

The Sanding Department of Quik Furniture Company has the following production and manufacturing cost data for March 2020, the first month of operation.

Production: 6,180 units finished and transferred out; 3,000 units started that are 100% complete as to materials and 20% complete as to conversion costs.

Manufacturing costs: Materials $28,917; labor $20,500; overhead $33,062.

Prepare a production cost report. (Round unit costs to 2 decimal places, e.g. 2.25 and other answers to 0 decimal places, e.g. 125.)

QUIK FURNITURE COMPANY
Sanding Department
Production Cost Report
For the Month Ended March 31, 2020

Equivalent Units

Quantities

Physical
Units


Materials

Conversion
Costs

Units to be accounted for

   Work in process, March 1

 enter a number of units

   Started into production

 enter a number of units

      Total units

 enter a total number of units

Units accounted for

   Transferred out

 enter a number of units enter a number of units enter a number of units

   Work in process, March 31

 enter a number of units enter a number of units enter a number of units

      Total units

 enter a total number of units enter a total number of units enter a total number of units

In: Accounting

Loanstar had 50 units in beginning inventory before starting 1,000 units and completing 850 units. The...

Loanstar had 50 units in beginning inventory before starting 1,000 units and completing 850 units. The beginning work in process inventory consisted of $3,000 in materials and $5,000 in conversion costs before $8,550 of materials and $12,670 of conversion costs were added during the month. The ending WIP inventory was 100% complete with regard to materials and 40% complete with regard to conversion costs.

Use the above information to complete a production cost report. Enter all amount as positive values.

Production Cost Report
Work in process completion percent 100% 40%
Material Units Conversion Units Total Units
Completed and transferred out
Ending work in process
Total units to account for
Costs to account for Materials Conversion Total
Beginning work in process $ $ $
Incurred during the period
Total costs to account for $ $ $
Equivalent units
Cost per equivalent unit for department $ $ $
Transferred-out costs $
End work in process: materials $
End work in process: conversion $
End work in process: total $
Total costs accounted for $

Prepare the journal entry to record the transfer of inventory from the manufacturing department to the finished goods department. If an amount box does not require an entry, leave it blank.

_____ _____

_____ _____

In: Accounting

Glassworks Inc. produces two types of glass shelving, rounded edge and squared edge, on the same...

Glassworks Inc. produces two types of glass shelving, rounded edge and squared edge, on the same production line. For the current period, the company reports the following data.

  

Rounded Edge Squared Edge Total
  Direct materials $ 9,600 $ 21,600 $ 31,200
  Direct labor 6,100 12,000 18,100
  Overhead (300% of direct labor cost) 18,300 36,000 54,300
  Total cost $ 34,000 $ 69,600 $ 103,600
  Quantity produced 10,500 ft. 14,100 ft.
  Average cost per ft. (rounded) $ 3.24 $ 4.94

  

Glassworks's controller wishes to apply activity-based costing (ABC) to allocate the $54,300 of overhead costs incurred by the two product lines to see whether cost per foot would change markedly from that reported above. She has collected the following information.

  

  Overhead Cost Category (Activity Cost Pool) Cost
  Supervision $ 2,172
  Depreciation of machinery 29,000
  Assembly line preparation 23,128
  Total overhead $ 54,300

  

She has also collected the following information about the cost drivers for each category (cost pool) and the amount of each driver used by the two product lines. (Round activity rate and cost per unit answers to 2 decimal places.)

  

Usage
  Overhead Cost Category
  (Activity Cost Pool)		 Driver Rounded Edge Squared Edge Total
  Supervision Direct labor cost ($) $ 6,100 $ 12,000 $ 18,100
  Depreciation of machinery Machine hours 300 hours 700 hours 1,000 hours
  Assembly line preparation Setups (number) 30 times 93 times 123 times
1. Assign these three overhead cost pools to each of the two products using ABC.
Activity Overhead Cost Activity Drivers Activity Rate
Supervision Direct labor cost %
Depreciation of machinery Machine hours
Assembly line preparation Setups
Rounded edge ----------Activity rate---------- Activity driver incurred Overhead assigned
Supervision %
Depreciation of machinery
Assembly line preparation
Squared edge ----------Activity rate---------- Activity driver incurred Overhead assigned
Components
Supervision %
Depreciation of machinery
Assembly line preparation
2. Determine average cost per foot for each of the two products using ABC.
Rounded edge Squared edge

In: Accounting

Glassworks Inc. produces two types of glass shelving, rounded edge and squared edge, on the same...

Glassworks Inc. produces two types of glass shelving, rounded edge and squared edge, on the same production line. For the current period, the company reports the following data.
  

Rounded Edge Squared Edge Total
Direct materials $ 9,600 $ 21,800 $ 31,400
Direct labor 6,100 11,800 17,900
Overhead (300% of direct labor cost) 18,300 35,400 53,700
Total cost $ 34,000 $ 69,000 $ 103,000
Quantity produced 10,400 ft. 14,200 ft.
Average cost per ft. (rounded) $ 3.27 $ 4.86

  
Glassworks's controller wishes to apply activity-based costing (ABC) to allocate the $53,700 of overhead costs incurred by the two product lines to see whether cost per foot would change markedly from that reported above. She has collected the following information.

Overhead Cost Category
(Activity Cost Pool)		 Cost
Supervision $ 2,148
Depreciation of machinery 28,680
Assembly line preparation 22,872
Total overhead $ 53,700

  
She has also collected the following information about the cost drivers for each category (cost pool) and the amount of each driver used by the two product lines. (Round activity rate and cost per unit answers to 2 decimal places.)

Usage
Overhead Cost Category
(Activity Cost Pool)		 Driver Rounded Edge Squared Edge Total
Supervision Direct labor cost ($) $ 6,100 $ 11,800 $ 17,900
Depreciation of machinery Machine hours 400 hours 800 hours 1,200 hours
Assembly line preparation Setups (number) 32 times 94 times 126 times
1. Assign these three overhead cost pools to each of the two products using ABC.
Activity Overhead Cost Activity Drivers Activity Rate
Supervision Direct labor cost %
Depreciation of machinery Machine hours
Assembly line preparation Setups
Rounded edge Activity rate Activity driver incurred Overhead assigned
Supervision %
Depreciation of machinery
Assembly line preparation
Squared edge Activity rate Activity driver incurred Overhead assigned
Components
Supervision %
Depreciation of machinery
Assembly line preparation
2. Determine average cost per foot for each of the two products using ABC.
Rounded edge Squared edge

In: Accounting

Tanya is playing PokemonGo, and searching for a Snorlax. The game is programmed such that pokemon...

Tanya is playing PokemonGo, and searching for a Snorlax. The game is programmed such that pokemon are generated randomly, and there is a 7% chance that a Snorlax will appear. Tanya will search Mill Creek park until she captures 473 random pokemon. Consider the proportion in her sample that will be Snorlaxes. As we have learned, the sample proportion is a random quantity.

What type of random variable can we use to approximate the sample proportion? Type the name of the distribution using all capital letters.

What is the mean of the sample proportion? Input your answer as a decimal, not a percent.  

What is the standard deviation of the sample proportion? Input your answer as a decimal, not a percent.

What is the approximate probability that more than 6% of her sample will be Snorlaxes? Input your answer as a decimal, not a percent.

In: Statistics and Probability

The Cash account of Guard Dog Security Systems reported a balance of $2,540 at December 31​,...

The Cash account of Guard Dog Security Systems reported a balance of $2,540 at December 31​, 2024. There were outstanding checks totaling $400 and a December 31 deposit in transit o f$100. The bank​ statement, which came from Park Cities​ Bank, listed the December 31 balance of $3,340. Included in the bank balance was a collection of $510 on account from Brendan Ballou​, a Guard Dog customer who pays the bank directly. The bank statement also shows a $30 service charge and $20 of interest revenue that Guard Dog earned on its bank balance. Prepare Guard Dog​'s bank reconciliation at December 31.

Guard Dog Security Systems

Bank Reconciliation

December 31, 2024

In: Accounting