## Wednesday, 3 October 2012

### The PVC Company manufactures a high-quality plastic pipe that goes through three processing stages prior to completion.

The PVC Company manufactures a high-quality plastic pipe that goes through three processing stages prior to completion.

 Information on work in the first department, Cooking, is given below for May:

 Production data: Pounds in process, May 1: materials       100% complete; conversion 90% complete 60,000 Pounds started into production during May 250,000 Pounds completed and transferred to       the next department ? Pounds in process, May 31:       materials 60% complete; conversion 40% complete 20,000 Cost data: Work in process inventory, May 1: Materials cost \$ 59,000 Conversion cost \$ 23,400 Cost added during May: Materials cost \$ 306,420 Conversion cost \$ 128,580

 The company uses the weighted-average method.

 Required:
 1 Compute the equivalent units of production.

 Materials Conversion Equivalent units of production

 Materials Conversion Cost per equivalent unit \$ \$

 3 Determine the cost of ending work in process inventory and of the units transferred out to the next department. (Omit the "\$" sign in your response.)

 Materials Conversion Total Cost of ending work in process inventory \$ \$ \$ Cost of units completed and transferred out \$ \$ \$

 Cost Reconciliation Costs to be accounted for: Cost of beginning work in process inventory \$ Costs added to production during the period Total cost to be accounted for \$ Costs accounted for as follows: Cost of ending work in process inventory \$ Cost of units completed and transferred out Total cost accounted for \$

Explanation:

### Solex Company produces a high-quality insulation material that passes through two production processes. Data for June for the first process follow:

Solex Company produces a high-quality insulation material that passes through two production processes. Data for June for the first process follow:

 Units Completion with Respect to Materials Completion with Respect to Conversion Work in process inventory, June 1 76,000 75 % 40 % Work in process inventory, June 30 56,000 50 % 25 % Materials cost in work in process inventory, June 1 \$ 60,000 Conversion cost in work in process inventory, June 1 \$ 17,800 Units started into production 258,000 Units transferred to the next process 278,000 Materials cost added during June \$ 408,180 Conversion cost added during June \$ 256,680

 Required:
 1 Assume that the company uses the weighted-average method of accounting for units and costs. Determine the equivalent units for June for the first process.

 Materials Conversion Equivalent units of production

 Materials Conversion Cost per equivalent unit \$ \$

 3 Determine the total cost of ending work in process inventory and the total cost of units transferred to the next process in June. (Omit the "\$" sign in your response.)

 Total Cost of ending work in process inventory \$ Cost of units transferred to the next process \$

Explanation:

### Kalox, Inc., manufactures an antacid product that passes through two departments. Data for May for the first department follow:

Kalox, Inc., manufactures an antacid product that passes through two departments. Data for May for the first department follow:
 Gallons Materials Labor Overhead Work in process, May 1 87,000 \$ 84,400 \$ 42,200 \$ 55,900 Gallons started in process 829,000 Gallons transferred out 850,000 Work in process, May 31 66,000 Cost added during May \$ 1,116,480 \$ 521,025 \$ 689,290

 The beginning work in process inventory was 70% complete with respect to materials and 55% complete with respect to labor and overhead. The ending work in process inventory was 50% complete with respect to materials and 25% complete with respect to labor and overhead.

 Required: Assume that the company uses the weighted-average method of accounting for units and costs.

 1 Compute the equivalent units for May’s activity for the first department.

 Materials Labor Overhead Equivalent units of production

 Materials Labor Overhead Cost per equivalent unit \$ \$ \$

Explanation:

### Societe Clemeau, a company located in Lyons, France, manufactures cement for the construction industry.

Societe Clemeau, a company located in Lyons, France, manufactures cement for the construction industry. Data relating to the kilograms of cement processed through the Mixing Department, the first department in the production process, are provided below for May:

 Percent Completed Kilograms of Cement Materials Conversion Work in process, May 1 80,900 86% 23% Work in process, May 31 51,000 45% 12% Started into production during May 301,000

 Required:
 1 Compute the number of kilograms of cement completed and transferred out of the Mixing Department during May.

 Completed and transferred out during the month

 2 Compute the equivalent units of production for materials and for conversion for May.

 Materials Conversion Equivalent units of production

Explanation:

### Schneider Brot is a bread-baking company located in Aachen, Germany, near the Dutch border. The

Schneider Brot is a bread-baking company located in Aachen, Germany, near the Dutch border. The company uses a process costing system for its single product—a popular pumpernickel bread. Schneider Brot has two processing departments—Mixing and Baking. The T-accounts below show the flow of costs through the two departments in April (all amounts are in the currency euros):

 Work in Process—Mixing
 Balance 4/1 12,000 Transferred out 760,000 Direct materials 326,000 Direct labor 256,000 Overhead 186,000

 Work in Process—Baking
 Balance 4/1 21,000 Transferred out 978,000 Transferred in 760,000 Direct labor 125,000 Overhead 94,000

 Required: Prepare journal entries showing the flow of costs through the two processing departments during April. (Omit the "€" sign in your response.)

 General Journal Debit Credit Raw materials issued. Work in process-Mixing Raw materials inventory Direct labor incurred. Work in process-Mixing Work in process-Baking Wages payable Manufacturing overhead applied. Work in process-Mixing Work in process-Baking Manufacturing overhead Work completed in Mixing Department. Work in process-Baking Work in process-Mixing Work completed in Baking Department. Finished goods Work in process-Baking