China Manufacturing Company applies process costing in the manufacture of its sole product, SARS-NCOV-2. Manufacturing starts...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
China Manufacturing Company applies process costing in the manufacture of its sole product, "SARS-NCOV-2". Manufacturing starts in Laboratory 1 where materials are all added at the start of processing. The good units are then transferred to Laboratory 2 where all the incremental materials needed for its completion are added after final inspection. In Laboratory 1, units are inspected at the end of processing while in Laboratory 2, inspection takes place when the units are 90% completed. Laboratory 1 uses FIFO costing, while Laboratory 2 uses weighted average costing. The production for the month of May show the following: Beginning work in process (May 1) Work to be done Laboratory 2 10,000 Laboratory 1 20,000 80% 20% Ending work in process (May 31) 30,000 17,500 Work completed Started in process during the month of May 2/3 150,000 5/7 Normal spoilage 4% of units started in process 2,500 Abnormal spoilage 1/4 of normal spoilage 1,250 Laboratory 1 Laboratory 2 Work in process, May 1: Transferred in Materials Conversion costs Current Costs: Transferred in: Materials Conversion costs 285,450 135,000 214,875 97,500 280,725 ? 1,980,000 3,088,800 840,000 1,282,500 Required: 1. Equivalent Units of Production a. Laboratory 1 - Materials b. Laboratory 1 - Conversion Costs c. Laboratory 2 - Transferred-in d. Laboratory 2 - Materials e. Laboratory 2 - Conversion Costs 2. Cost per EUP a. Laboratory 1 - Materials b. Laboratory 1 - Conversion Costs c. Laboratory 2 - Transferred-in d. Laboratory 2 - Materials e. Laboratory 2 - Conversion Costs 3. Total costs transferred to Laboratory 2 4. Ending work in process inventory in Laboratory 1 5. Total costs transferred to finished goods inventory 6. Ending work in process inventory in Laboratory 2 China Manufacturing Company applies process costing in the manufacture of its sole product, "SARS-NCOV-2". Manufacturing starts in Laboratory 1 where materials are all added at the start of processing. The good units are then transferred to Laboratory 2 where all the incremental materials needed for its completion are added after final inspection. In Laboratory 1, units are inspected at the end of processing while in Laboratory 2, inspection takes place when the units are 90% completed. Laboratory 1 uses FIFO costing, while Laboratory 2 uses weighted average costing. The production for the month of May show the following: Beginning work in process (May 1) Work to be done Laboratory 2 10,000 Laboratory 1 20,000 80% 20% Ending work in process (May 31) 30,000 17,500 Work completed Started in process during the month of May 2/3 150,000 5/7 Normal spoilage 4% of units started in process 2,500 Abnormal spoilage 1/4 of normal spoilage 1,250 Laboratory 1 Laboratory 2 Work in process, May 1: Transferred in Materials Conversion costs Current Costs: Transferred in: Materials Conversion costs 285,450 135,000 214,875 97,500 280,725 ? 1,980,000 3,088,800 840,000 1,282,500 Required: 1. Equivalent Units of Production a. Laboratory 1 - Materials b. Laboratory 1 - Conversion Costs c. Laboratory 2 - Transferred-in d. Laboratory 2 - Materials e. Laboratory 2 - Conversion Costs 2. Cost per EUP a. Laboratory 1 - Materials b. Laboratory 1 - Conversion Costs c. Laboratory 2 - Transferred-in d. Laboratory 2 - Materials e. Laboratory 2 - Conversion Costs 3. Total costs transferred to Laboratory 2 4. Ending work in process inventory in Laboratory 1 5. Total costs transferred to finished goods inventory 6. Ending work in process inventory in Laboratory 2
Expert Answer:
Answer rating: 100% (QA)
China Manufacturing Company Process Costing Analysis 1 Equivalent Units of Production EUP a Laboratory 1 Materials FIFO Units started in process May 10 FIFO assumes all materials are added at the beginning Units started during the month20000 Normal spoilage23 20000 13333 reduce good units by normal spoilage Abnormal spoilage 57 13333 9524 reduce good units by abnormal spoilage Good units completed20000 13333 9524 7143 EUP Units started Normal spoilage FIFO assumes all materials are added at the beginning EUP 0 13333 b Laboratory 1 Conversion Costs FIFO Same as materials FIFO assumes all costs are added at the beginning EUP 13333 c Laboratory 2 Transferredin Units started in Laboratory 230000 Normal spoilage23 30000 20000 reduce good units by normal spoilage Abnormal spoilage57 20000 14286 reduce good units by abnormal spoilage Good units completed30000 20000 14286 5714 Work in processMay 1 90 complete09 Units in WIP May 1 information not provided EUP Units started Normal spoilage Work in process May 1 ... View the full answer
Related Book For
Posted Date:
Students also viewed these accounting questions
-
A mining company is considering a new project. Because the mine has received a permit, the project would be legal; but it would cause significant harm to a nearby river. The firm could spend an...
-
1. The department production report of Peninsula Company for August is summarized below: Assembly Finishing Department Department Quantity: Started in Production - Current Month 2,000 -0- Transferred...
-
Determine the intrinsic fundamental valuation of Berger Paints (on a per share basis) using the multi-stage DDM. Clearly state all your assumptions and calculations including an estimation of cost of...
-
1 points Question 11 Your 91-year-old great-aunt has terminal cancer. You and shehave had many conversations regarding what she would want done ifshe were incapacitated and could not make choices...
-
The measurements in this study were self reported by the participants. Explain the extent to which you think this may systematically have caused the measurements of hangover severity of men or women...
-
Paul and Sonja, who are married, had itemized deductions of $8,200 and $400, respectively, during 2017. Paul suggests that they file separately-he will itemize his deductions from AGI, and she will...
-
Forecasting the Future Spot Rate Based on IFE. Assume that the spot exchange rate of the Singapore dollar is $.70. The 1-year interest rate is 11 percent in the United States and 7 percent in...
-
During 2017, Nilsen Company started a construction job with a contract price of $1,600,000. The job was completed in 2019. The following information is available. The contract is non-cancellable....
-
Find the instantaneous rate of change of f(x) = x-8x+1 when x = -4. O -8 O-14 O-16 16
-
Superior Company provided the following data for the year ended December 31 (all raw materials are used in production as direct materials): Selling expenses Purchases of raw materials Direct labor...
-
board Font ge 1 of 1 240 words E Paragraph Styles Blue Mountain Coffee Company sells three different coffees-to-go (flavored, lattes, and iced coffees). Additionally, they sell their private label...
-
The Cybertronics Corporation reported the following information for its Cyclotron Division: Revenues reported as $2,000,000 Operating costs reported as $1,200,000 Taxable income reported as $400,000...
-
Fuzzy Restaurant is considering the purchase of a $3,500,000 flat top grill. The grill has an economic life of 7 years and will be fully depreciated using the straight-line method. The grill is...
-
Sound is emitted from a siren as a spherical wave. The intensity 2 . 5 m from the siren is 1 2 0 W / m 2 . What intensity is heard 1 2 . 2 m away?
-
BAREBELLS Protein Bars, the best balance of taste, low sugar and fat content, minimal calories and high protein content. Antah Pusaka Berhad is considering a proposal to manufacture BAREBELLS Protein...
-
You estimate that your soy farm will generate 0.8 million of profits on sales of 4.8 million under normal economic conditions, and that the degree of operating leverage is 3.8. What will sales be if...
-
What steps must a business take to implement a program of social responsibility?
-
Western Power is considering the replacement of an old billing system with new software that should save $5,000 per year in net cash operating costs. The old system has zero disposal value, but it...
-
Toyland Company was one of the original producers of Transformers. An especially complex part of Sect-a-con needs special tools that are not useful for other products. These tools were purchased on...
-
Explain the major features and advantages of a master budget.
Study smarter with the SolutionInn App