acct 212 homework 4 chapter 20

acct 212   homework 4  chapter 20Problem 20-1A Production cost flow and measurement; journal entries L.O.
P1, P2, P3, P4
[The following information applies to
the questions displayed below.]

Edison
Company manufactures wool blankets and accounts for product costs using
process costing. The following information is available regarding its May
inventories.

Beginning
Inventory

Ending
Inventory

Raw
materials inventory

$

54,000

$

50,000

Goods
in process inventory

436,500

516,000

Finished
goods inventory

620,000

172,001

The
following additional information describes the company’s production
activities for May.

Raw
materials purchases (on credit)

$

250,000

Factory
payroll cost (paid in cash)

2,060,000

Other
overhead cost (Other Accounts credited)

100,000

Materials
used

Direct

$

209,500

Indirect

54,000

Labor
used

Direct

$

1,230,000

Indirect

830,000

Overhead
rate as a percent of direct labor

125

%

Sales
(on credit)

$

4,000,000

The
predetermined overhead rate was computed at the beginning of the year as 125%
of direct labor cost.

rev: 11_02_2011

Section Break

Learning Objective: 20-P1 Record the flow of direct materials costs in
process cost accounting.

Learning Objective: 20-P4 Record the transfer of completed goods to
Finished Goods Inventory and Cost of Goods Sold.

Problem 20-1A Production cost flow and measurement; journal entries
L.O. P1, P2, P3, P4

Learning Objective: 20-P2 Record the flow of direct labor costs in
process cost accounting.

Difficulty: Medium

Learning Objective: 20-P3 Record the flow of factory overhead costs in
process cost accounting.

1.
award:
0 out of
2.00 points

Problem 20-1A Part 1

Required:

1(a)

Compute
the cost of products transferred from production to finished goods. (Omit the “$” sign in your response.)

Cost
of products transferred

$ 902,400 .gif” alt=”incorrect”>

1(b)

Compute
the cost of goods sold. (Omit the
“$” sign in your response.)

Cost
of goods sold

$ 447,999 .gif” alt=”incorrect”>

rev: 10_31_2011

eBook Links (4)

2.
award:
4.55 out of
5.00 points

Problem 20-1A Part 2

2(a)

Prepare
journal entry dated May 31 to record the raw materials purchases. (Omit the “$” sign in your response.)

2(b)

Prepare
journal entry dated May 31 to record the direct materials usage. (Omit the “$” sign in your response.)

2(c)

Prepare
journal entry dated May 31 to record the indirect materials usage. (Omit the “$” sign in your response.)

2(d)

Prepare
journal entry dated May 31 to record the payroll costs. (Omit the “$” sign in your response.)

2(e)

Prepare
journal entry dated May 31 to record the direct labor costs. (Omit the “$” sign in your response.)

2(f)

Prepare
journal entry dated May 31 to record the indirect labor costs. (Omit the “$” sign in your response.)

2(g)

Prepare
journal entry dated May 31 to record the other overhead costs. (Omit the “$” sign in your response.)

2(h)

Prepare
journal entry dated May 31 to record the overhead applied. (Omit the “$” sign in your response.)

2(i)

Prepare
journal entry dated May 31 to record the goods transferred from production to
finished goods.(Omit the “$” sign in
your response.)

2(j)

Prepare
journal entry dated May 31 to record the sale of finished goods. (Omit the “$” sign in your response.)

eBook Links (4)

Worksheet

Learning Objective: 20-P1 Record the flow of direct materials costs in
process cost accounting.

Learning Objective: 20-P4 Record the transfer of completed goods to
Finished Goods Inventory and Cost of Goods Sold.

Problem 20-1A Part 2

Learning Objective: 20-P2 Record the flow of direct labor costs in
process cost accounting.

Difficulty: Medium

Learning Objective: 20-P3 Record the flow of factory overhead costs in
process cost accounting.

Problem 20-2A Cost per equivalent unit; costs assigned to products L.O.
C2, C3
[The following information applies to
the questions displayed below.]

Fairfax
Company uses weighted-average process costing to account for its production
costs. Direct labor is added evenly throughout the process. Direct materials
are added at the beginning of the process. During September, the company
transferred 760,000 units of product to finished goods. At the end of
September, the goods in process inventory consists of 201,000 units that are
40% complete with respect to labor. Beginning inventory had $437,255 of
direct materials and $147,070 of direct labor cost. The direct labor cost
added in September is $2,794,330, and the direct materials cost added is
$2,926,245.

Section Break

Problem 20-2A Cost per equivalent unit; costs assigned to products
L.O. C2, C3

3.
award:
0 out of
2.00 points

Problem 20-2A Part 1

Required:

1(a)

Determine
the equivalent units of production with respect to direct labor.

Equivalent
units

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1(b)

Determine
the equivalent units of production with respect to direct materials.

Equivalent
units

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eBook Links (2)

4.
award:
0 out of
2.00 points

Problem 20-2A Part 2

2.

Compute
both the direct labor cost and the direct materials cost per equivalent unit. (Round your answers to 2 decimal place. Omit the
“$” sign in your response.)

5.
award:
0 out of
2.00 points

Problem 20-2A Part 3

3(a)

Compute
both direct labor cost and direct materials cost assigned to units completed
and transferred out. (Due to rounding of cost
per unit, the total costs accounted for in the cost summary may not equal to
sum of all the costs given in the problem. Round your per unit costs to 2
decimal places and final answers to the nearest dollar amount.)

3(b)

Compute
both direct labor cost and direct materials cost assigned to ending goods in
process inventory. (Due to rounding of cost
per unit, the total costs accounted for in the cost summary may not equal to
sum of all the costs given in the problem. Round your per unit costs to 2
decimal places and final answers to the nearest dollar amount.)

Problem 20-3A Journalizing in process costing; equivalent units and
costs L.O. C2, P1, P2, P3
[The following information applies to
the questions displayed below.]

Li
Company produces large quantities of a standardized product. The following
information is available for its production activities for January.

Raw
materials

Factory
overhead incurred

Beginning
inventory

$

23,000

Indirect
materials used

$

75,500

Raw
materials purchased (on credit)

275,000

Indirect
labor used

45,000

Direct
materials used

(170,000

)

Other
overhead costs

161,040

Indirect
materials used

(75,500

)

Total
factory overhead incurred

$

281,540

Ending
Inventory

$

52,500

Factory
overhead applied

Factory
payroll

(140%
of direct labor cost)

Direct
labor used

$

201,100

Total
factory overhead applied

$

281,540

Indirect
labor used

45,000

Total
payroll cost (paid in cash)

$

246,100

Additional
information about units and costs of production activities follows.

Units

Costs

Beginning
goods in process inventory

2,300

Beginning
goods in process inventory

Started

38,000

Direct
materials

$

3,000

Ending
goods in process inventory

5,400

Direct
labor

2,700

Factory
overhead

4,200

$

9,900

Status of ending goods in
process inventory

Direct
materials added

170,000

Materials—Percent
complete

90

%

Direct
labor added

201,100

Labor
and overhead—Percent complete

75

%

Overhead
applied (140% of direct labor)

281,540

Total
costs

$

662,540

Ending
goods in process inventory

$

72,050

During
January, 18,000 units of finished goods are sold for $120 cash each. Cost
information regarding finished goods follows.

Beginning
finished goods inventory

$

165,000

Cost
transferred in

590,490

Cost
of goods sold

(606,390

)

Ending
finished goods inventory

$

149,100

Section Break

Learning Objective: 20-C2 Define and compute equivalent units and
explain their use in process cost accounting.

Learning Objective: 20-P3 Record the flow of factory overhead costs in
process cost accounting.

Problem 20-3A Journalizing in process costing; equivalent units and
costs L.O. C2, P1, P2, P3

Learning Objective: 20-P1 Record the flow of direct materials costs in
process cost accounting.

Difficulty: Hard

Learning Objective: 20-P2 Record the flow of direct labor costs in
process cost accounting.

6.
award:
0 out of
5.00 points

Problem 20-3A Part 1

Required:

1(a)

Prepare
journal entry dated January 31 to record the purchase of raw materials. (Omit the “$” sign in your response.)

Date

General Journal

Debit

Credit

Jan. 31

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1(b)

Prepare
journal entry dated January 31 to record the direct materials usage. (Omit the “$” sign in your response.)

Date

General Journal

Debit

Credit

Jan. 31

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1

Date

General Journal

Debit

Credit

Jan. 31

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1(j)

Prepare
journal entries dated January 31 to record the sale of finished goods. (Omit the “$” sign in your response.)

Date

General Journal

Debit

Credit

Jan. 31

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eBook Links (4)

Worksheet

0 out of
5.00 points

Problem 20-3A Part 2

2.

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Total
costs to account for

$ n/r .gif” alt=”incorrect”>

eBook Links (3)

Worksheet

Difficulty: Hard

Learning Objective: 20-C3 Define and prepare a process cost summary
and describe its purposes.

Problem 20-5A Part 1

Learning Objective: 20-C2 Define and compute equivalent units and
explain their use in process cost accounting.

Learning Objective: 20-P4 Record the transfer of completed goods to
Finished Goods Inventory and Cost of Goods Sold.

9.
award:
0 out of
2.00 points

Problem 20-5A Part 2

2.

Prepare
the journal entry dated October 31 to transfer the cost of completed units to
finished goods inventory. (Omit the
“$” sign in your response.)

Date

General Journal

Debit

Credit

Oct. 31

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eBook Links (3)

Worksheet

Difficulty: Hard

Learning Objective: 20-C3 Define and prepare a process cost summary
and describe its purposes.

Problem 20-5A Part 2

Learning Objective: 20-C2 Define and compute equivalent units and
explain their use in process cost accounting.

Learning Objective: 20-P4 Record the transfer of completed goods to
Finished Goods Inventory and Cost of Goods Sold.