Lauren Inc. makes three products that can be sold at split-off or processed further and then sold. The joint cost for April is $1,512,000.

The number of ounces in a bottle of each product is: perfume, one; eau de toilette, two; and body splash, three. Assume that all products are processed further after split-off.

a. Allocate the joint cost based on the number of bottles, weight, and approximated net realizable values at split-off.
Note: Round proportions to the nearest whole percentage and dollar amounts to the nearest whole dollar.

b. Assume that all products are processed further and completed. At the end of the period, the inventories are as follows: perfume, 840 bottles; eau de toilette, 2,240 bottles; and body splash, 2,352 bottles. Determine the values of the inventories based on answers obtained in (a).
Note: Round your final answer to the nearest whole dollar.
1. Allocation by bottles

2. Allocation by weight

3. Allocation by approximated NRV

Yarmouth Company produces a liquid solvent in two departments: Mixing and Finishing. Accounting records at Yarmouth show the following information for Finishing operations for February (no new material is added in the Finishing Department).

The ending inventory has 14,300 units, which are 50 percent complete with respect to Finishing Department costs and 100 percent complete for Mixing Department costs.

Complete the production cost report using the FIFO method

Widmer Watercraft’s predetermined overhead rate for the year 2017 is 200% of direct labor. Information on the company’s production activities during May 2017 follows. Purchased raw materials on credit, $220,000. Materials requisitions record use of the following materials for the month. Job 136 $ 48,500 Job 137 32,500 Job 138 19,800 Job 139 22,800 Job 140 6,600 Total direct materials 130,200 Indirect materials 20,500 Total materials used $ 150,700 Paid $15,250 cash to a computer consultant to reprogram factory equipment. Time tickets record use of the following labor for the month. These wages were paid in cash. Job 136 $ 12,100 Job 137 10,600 Job 138 37,700 Job 139 39,200 Job 140 3,400 Total direct labor 103,000 Indirect labor 24,000 Total $ 127,000 Applied overhead to Jobs 136, 138, and 139. Transferred Jobs 136, 138, and 139 to Finished Goods. Sold Jobs 136 and 138 on credit at a total price of $535,000. The company incurred the following overhead costs during the month (credit Prepaid Insurance for expired factory insurance). Depreciation of factory building $ 70,000 Depreciation of factory equipment 38,000 Expired factory insurance 11,000 Accrued property taxes payable 35,500 Applied overhead at month-end to the Work in Process Inventory account (Jobs 137 and 140) using the predetermined overhead rate of 200% of direct labor cost. 4. Prepare a report showing the total cost of each job in process and prove that the sum of their costs equals the Work in Process Inventory account balance. Prepare similar reports for Finished Goods Inventory and Cost of Goods Sold.

JOHNSTON ENTERPRISES          
BALANCE SHEET          
   31-Dec-17       31-Dec-16
Current Assets:          
Cash   $140,000        $120,000
Accounts Receivable   200,000       300,000
Inventory   400,000       300,000
Total Current Assets   740,000       720,000
Property, Plant, and Equipment   1,241,000       1,122,000
Less: Accumulated Depreciation   -476,000       -442,000
Total Assets   1,505,000       1,400,000
          
Current Liabilities:            
Accounts Payable   $201,000        $130,000
Notes Payable   40,000       60,000
Income Taxes Payable   90,000       70,000
Total Current Liabilities   331,000       260,000
Bonds Payable   300,000       400,000
Total Liabilities   631,000       660,000
          
Stockholders' Equity          
Common Stock   500,000       400,000
Retained Earnings   374,000       340,000
Total Stockholders' Equity   874,000       740,000
Total Liabilities & Stockholders' Equity   1,505,000       1,400,000
          
INCOME STATEMENT          
Sales Revenue   $1,580,000        $1,500,000
Less Cost of Goods Sold   770,000       740,000
Gross Profit Expenses:   810,000       760,000
          
Depreciation Expense   153,000       136,000
Salaries and Wages Expense   350,000       340,000
Interest Expense   41,000       31,000
Loss on Sale of Equipment   12,000       0
Income Before Taxes   254,000       253,000
Less Income Tax Expense   90,000       100,000
Net Income   164,000       153,000
ADDITIONAL INFORMATION          
During the year, Johnston sold equipment. The book value of the equipment          
was comprised of the following amounts:          
Original Cost:   153,000      
Accumulated Deprecation:   119,000      
          
During the year Johnston purchased new equipment as follows:          
Cost of new equipment:   272,000      
          
Dividends were paid during the year.          

Prepare a statement of cash flows for the year ending December 31, 2017. (Show amounts that decrease cash flow with either a - sign e.g. -15,000 or in parenthesis e.g. (15,000).)

Required information

[The following information applies to the questions displayed below.]

Acme Materials Company manufactures and sells synthetic coatings that can withstand high temperatures. Its primary customers are aviation manufacturers and maintenance companies. The following table contains financial information pertaining to cost of quality (COQ) in 2019 and 2020 (in thousands of dollars):

Required:

1. Classify the cost items in the table into cost-of-quality (COQ) categories.

2. Calculate the ratio of each COQ category to revenues in each of the 2 years.

3. Calculate the percentage change in each COQ category and total COQ and comment on the results:

a. Percentage change in total COQ as a percentage of sales, from 2019 to 2020;

b. Total COQ in 2020 expressed as a percentage of 2019 sales dollars;

c. Percentage change in total prevention costs, 2019 to 2020;

d. Percentage change in total appraisal costs, 2019 to 2020;

e. Percentage change in total internal failure costs, 2019 to 2020;

f. Percentage change in total external failure costs, 2019 to 2020.

Because most of the parts for its irrigation systems are standard, Waterways handles the majority of its manufacturing as a process cost system. There are multiple process departments. Three of these departments are the Molding, Cutting, and Welding departments. All items eventually end up in the Package department which prepares items for sale in kits or individually. The following information is available for the Molding department for January. Work in process beginning: Units in process 22,000 Stage of completion for materials 80% Stage of completion for labor and overhead 30% Costs in work in process inventory: Materials $168,360 Labor 67,564 Overhead 17,270 Total costs in beginning work in process $253,194 Units started into production in January 60,000 Units completed and transferred in January 58,000 Costs added to production: Materials $264,940 Labor 289,468 Overhead 60,578 Total costs added into production in January $614,986 Work in process ending: Units in process 24,000 Stage of completion for materials 50% Stage of completion for labor and overhead 10%

Collapse question part (a) Prepare a production cost report for Waterways using the weighted-average method. (Round unit costs to 2 decimal places, e.g. 2.25.)

WATERWAYS CORPORATION

Molding Department Production Report

Equivalent Units

Quantities Physical Units Materials Conversion Costs

Units to be accounted for

Work in process, Jan. 1

Started into production

Total units

Units accounted for

Transferred out

Work in process, Jan 31

Total units

Costs Materials Conversion Costs Total  

Unit costs

Costs in January $ $ $

Equivalent units

Unit costs $ $ $

Costs to be accounted for

Work in process, Jan. 1 $

Started into production

Total costs $

Cost Reconciliation Schedule

Costs accounted for

Transferred out $

Work in process, Jan. 31

Materials

Conversion costs

Total costs $

this is orginal format

[The following information applies to the questions displayed below.] Acme Materials Company manufactures and sells synthetic coatings that can withstand high temperatures. Its primary customers are aviation manufacturers and maintenance companies. The following table contains financial information pertaining to cost of quality (COQ) in 2019 and 2020 (in thousands of dollars): 2019 2020 Sales $ 15,900 $ 19,900 Materials inspection 290 59 In-process (production) inspection 159 124 Finished product inspection 240 69 Preventive equipment maintenance 19 59 Scrap (net) 490 290 Warranty repairs 690 440 Product design engineering 149 260 Vendor certification 21 59 Direct costs of returned goods 265 79 Training of factory workers 39 139 Product testing—equipment maintenance 59 59 Product testing labor 200 89 Field repairs 69 39 Rework before shipment 230 199 Product-liability settlement 350 59 Emergency repair and maintenance 190 74 Required: 1. Classify the cost items in the table into cost-of-quality (COQ) categories. 2. Calculate the ratio of each COQ category to revenues in each of the 2 years. 3. Calculate the percentage change in each COQ category and total COQ and comment on the results: a. Percentage change in total COQ as a percentage of sales, from 2019 to 2020; b. Total COQ in 2020 expressed as a percentage of 2019 sales dollars; c. Percentage change in total prevention costs, 2019 to 2020; d. Percentage change in total appraisal costs, 2019 to 2020; e. Percentage change in total internal failure costs, 2019 to 2020; f. Percentage change in total external failure costs, 2019 to 2020.

Because most of the parts for its irrigation systems are standard, Waterways handles the majority of its manufacturing as a process cost system. There are multiple process departments. Three of these departments are the Molding, Cutting, and Welding departments. All items eventually end up in the Package department which prepares items for sale in kits or individually. The following information is available for the Molding department for January.

Work in process beginning: Units in process 22,000 Stage of completion for materials 80% Stage of completion for labor and overhead 30%

Costs in work in process inventory: Materials $168,360 Labor 67,564 Overhead 17,270 Total costs in beginning work in process $253,194

Units started into production in January 60,000 Units completed and transferred in January 58,000

Costs added to production: Materials $264,940 Labor 289,468 Overhead 60,578 Total costs added into production in January $614,986

Work in process ending: Units in process 24,000 Stage of completion for materials 50% Stage of completion for labor and overhead 10%

Collapse question part (a) Prepare a production cost report for Waterways using the weighted-average method. (Round unit costs to 2 decimal places, e.g. 2.25.)

WATERWAYS CORPORATION

Molding Department Production Report

Equivalent Units

Quantities Physical Units Materials Conversion Costs

Units to be accounted for

Work in process, Jan. 1

Started into production

Total units

Units accounted for

Transferred out

Work in process, Jan 31

Total units

Costs Materials Conversion Costs Total

Unit costs

Costs in January $ $ $

Equivalent units

Unit costs $ $ $

Costs to be accounted for

Work in process, Jan. 1 $

Started into production

Total costs $

Cost Reconciliation Schedule

Costs accounted for

Transferred out $

Work in process, Jan. 31

Materials

Conversion costs

Total costs $