Muskoge Company uses a process-costing system. The company manufactures a product that is processed in two...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Muskoge Company uses a process-costing system. The company manufactures a product that is processed in two departments: Molding and Assembly. In the Molding Department, direct materials are added at the beginning of the process; in the Assembly Department, additional direct materials are added at the end of the process. In both departments, conversion costs are incurred uniformly throughout the process. As work is completed, it is transferred out. The following table summarizes the production activity and costs for February: Molding Assembly Beginning inventories: Physical units 10,000 8,000 Costs: Transferred in $45,400 Direct materials $22,000 Conversion costs $13,800 $16,700 Current production: Units started 25,000 Units transferred out 30,000 35,000 Costs: Transferred in Direct materials $56,250 $39,550 Conversion costs $106,500 $136,500 Percentage of completion: Beginning inventory 40% 50% Ending inventory 80 50 Required: 1. Using the FIFO method, prepare the following for the Molding Department: a. A physical flow schedule Required: 1. Using the FIFO method, prepare the following for the Molding Department: a. A physical flow schedule Muskoge Company Molding Department Physical Flow Schedule Units to account for: Units, beginning work in process v 10,000 Units started in February (transferred in) V 25,000 Total units to account for 35,000 Units accounted for: Units completed and transferred out: Started and completed v 20,000 V From beginning work in process v 10,000 V Units, ending work in process 5,000 V Total units accounted for 35,000 b. An equivalent units calculation Total Equivalent Units 25,000 v Direct Materials Conversion Costs 30,000 v c. Calculation of unit costs. Round your answer to the nearest cent. 5.80 v per unit d. Cost of ending work in process and cost of goods transferred out. 25,050 x Cost of goods transferred out: $ 195,550 x Cost of ending work in process: e. A cost reconciliation. Costs to account for: Beginning work in process 35,800 Costs incurred 162,750 Total costs to account for 198,550 d. Cost of ending work in process and cost of goods transferred out. Cost of ending work in process: $ 25,050 x Cost of goods transferred out: $ 195,550 x e. A cost reconciliation. Costs to account for: Beginning work in process 35,800 Costs incurred 162,750 Total costs to account for $ 198,550 Costs accounted for: Transferred out 114,000 x Ending work in process 27,050 x Total costs accounted for $ 141,050 x 3. Repeat Requirements 1 and 2 for the Assembly Department. a. A physical flow schedule Muskoge Company Assembly Department Physical Flow Schedule Units to account for: Units, beginning work in process 8,000 Units started in February (transferred in) v 30,000 Total units to account for 38,000 Units accounted for: Units completed and transferred out: Started and completed v 27,000 V From beginning work in process v 8,000 V Units, ending work in process v 3,000 V Total units accounted for 38,000 b. An equivalent units calculation Total Equivalent Units Direct Materials 35,000 V Conversion Costs 32,500 v Transferred In 30,000 c. Calculation of unit costs. If required, round your intermediate computations and final answer to four decimal places and use the rounded answer in subsequent computations. $ 11.0133 x per unit d. Compute the following. For interim computations, carry amounts out to four decimal places. Round your final answers to the nearest dollar. Cost of ending work in process: $ 23,350 x Cost of goods transferred out: $ 385,200 x e. A cost reconciliation. When necessary, round equivalent cost per unit to four decimal places, and round all other amounts to the nearest dollar. Costs to account for: Beginning work in process 62,000 x Costs incurred 346,550 x Total costs to account for 408,550 X Muskoge Company uses a process-costing system. The company manufactures a product that is processed in two departments: Molding and Assembly. In the Molding Department, direct materials are added at the beginning of the process; in the Assembly Department, additional direct materials are added at the end of the process. In both departments, conversion costs are incurred uniformly throughout the process. As work is completed, it is transferred out. The following table summarizes the production activity and costs for February: Molding Assembly Beginning inventories: Physical units 10,000 8,000 Costs: Transferred in $45,400 Direct materials $22,000 Conversion costs $13,800 $16,700 Current production: Units started 25,000 Units transferred out 30,000 35,000 Costs: Transferred in Direct materials $56,250 $39,550 Conversion costs $106,500 $136,500 Percentage of completion: Beginning inventory 40% 50% Ending inventory 80 50 Required: 1. Using the FIFO method, prepare the following for the Molding Department: a. A physical flow schedule Required: 1. Using the FIFO method, prepare the following for the Molding Department: a. A physical flow schedule Muskoge Company Molding Department Physical Flow Schedule Units to account for: Units, beginning work in process v 10,000 Units started in February (transferred in) V 25,000 Total units to account for 35,000 Units accounted for: Units completed and transferred out: Started and completed v 20,000 V From beginning work in process v 10,000 V Units, ending work in process 5,000 V Total units accounted for 35,000 b. An equivalent units calculation Total Equivalent Units 25,000 v Direct Materials Conversion Costs 30,000 v c. Calculation of unit costs. Round your answer to the nearest cent. 5.80 v per unit d. Cost of ending work in process and cost of goods transferred out. 25,050 x Cost of goods transferred out: $ 195,550 x Cost of ending work in process: e. A cost reconciliation. Costs to account for: Beginning work in process 35,800 Costs incurred 162,750 Total costs to account for 198,550 d. Cost of ending work in process and cost of goods transferred out. Cost of ending work in process: $ 25,050 x Cost of goods transferred out: $ 195,550 x e. A cost reconciliation. Costs to account for: Beginning work in process 35,800 Costs incurred 162,750 Total costs to account for $ 198,550 Costs accounted for: Transferred out 114,000 x Ending work in process 27,050 x Total costs accounted for $ 141,050 x 3. Repeat Requirements 1 and 2 for the Assembly Department. a. A physical flow schedule Muskoge Company Assembly Department Physical Flow Schedule Units to account for: Units, beginning work in process 8,000 Units started in February (transferred in) v 30,000 Total units to account for 38,000 Units accounted for: Units completed and transferred out: Started and completed v 27,000 V From beginning work in process v 8,000 V Units, ending work in process v 3,000 V Total units accounted for 38,000 b. An equivalent units calculation Total Equivalent Units Direct Materials 35,000 V Conversion Costs 32,500 v Transferred In 30,000 c. Calculation of unit costs. If required, round your intermediate computations and final answer to four decimal places and use the rounded answer in subsequent computations. $ 11.0133 x per unit d. Compute the following. For interim computations, carry amounts out to four decimal places. Round your final answers to the nearest dollar. Cost of ending work in process: $ 23,350 x Cost of goods transferred out: $ 385,200 x e. A cost reconciliation. When necessary, round equivalent cost per unit to four decimal places, and round all other amounts to the nearest dollar. Costs to account for: Beginning work in process 62,000 x Costs incurred 346,550 x Total costs to account for 408,550 X
Expert Answer:
Answer rating: 100% (QA)
637 Molding department Molding Department Units BWIP 10000 Units Started at February 25000 Total units to account for 35000 Units BWIP 10000 Units Sta... View the full answer
Related Book For
Cornerstones of Cost Management
ISBN: 978-1285751788
3rd edition
Authors: Don R. Hansen, Maryanne M. Mowen
Posted Date:
Students also viewed these accounting questions
-
Depine P = (1,3), Q = (2,4), V = (-), 3 line I = P + [v] and l = Q + [V] Find : ) a) d (P. l b) d (Q, l) c) d (l, lr) e) Re, (Q) (reflection of 2 in 1 ) d (re (0), l)
-
The Lloyd Company uses a process costing system There were no units in the beginning workinprocess, 1,400 were started and 1,000 units were completed and transferred out The units at the end of the...
-
The Saunders Paint Co. uses a process costing system. You have been given the following selected information for July 2012: Units Percent Complete Beginning work in process...
-
1. If a firm has already paid an expense or is obligated to pay one in the future, regardless of whether a particular project is undertaken, that expense is a A. Committed cost B. Complementary cost...
-
A large automobile manufacturer has asked you to develop a questionnaire to measure owners' satisfaction with the servicing of their vehicles. One sequence of questions will deal with satisfaction...
-
Repeat Exercise 2 where m is the minimum value of f on S instead of the maximum value. Data Form Exercise 2 Given points in R 2 , let let S D conv {p 1 ; p 2 ; p 3 }. For each linear functional f,...
-
You collect a random sample of the number of children per household in a region. The results are listed below. Find the sample mean and the sample standard deviation of the data set. 1 3 1 1 1 1 2 2...
-
After substantial marketing research, Taoyuan Corporation management believes that it can make and sell a new battery with a prolonged life for laptop computers. Management expects the market demand...
-
8. We discussed several sorting algorithms this semester. Of the following listed, answer the following questions: Mergsort, Insertion Sort, Quicksort, Counting Sort, Radix Sort a) What is the...
-
Prince Corporation acquires Squire Service Corporation for one million shares of Prince stock, valued at $35 per share. Squire is merged into Prince, although it continues to do business under the...
-
What is the value-added experience for Starbucks customers? Do you agree Pine & Gilmore's "Experience Economy"?
-
It is important for users of financial statements to be aware of different ____________ methods and to question why one method was ____________ rather than another.
-
Which of the following was not a signal in Enrons financial statements of its financial problems? (a) Receivables increased as a percentage of sales. (b) Its debt-to-equity ratio decreased over time....
-
Is the intermingling of a companys assets with those of a major shareholder, director, or company officer illegal? Is it unethical? Or is it both illegal and unethical? Explain your answer.
-
According to the SEC, BellSouths improper accounting for foreign payments in contravention of the Foreign Corrupt Practices Act (FCPA) included all of the following, except: (a) The use of fabricated...
-
According to GAAP, a company is allowed to recognize a profit in its financial statements in respect of the increase in the price of its own shares. True/False
-
3. Five annual deposits in the amounts of $1200, $1000, $800, $600, and $400 are made into a fund that pays interest at a rate of 9% compounded annually. Determine the present value of these deposits.
-
ABC company leased new advanced computer equipment to STU Ltd on 1 January 2019.STULtd has to pay annual rental of $290,000 starting at 1 January 2019. It is a four years lease with ultimate rental...
-
Golding Bank provided the following data about its resources and activities for its checking account process: Required: 1. Calculate the capacity cost rate for the checking account process. 2....
-
Refer to Cornerstone Exercise 7.3 and solve for the allocated costs to Fabricating and Assembly using the direct method of support department cost allocation. The Fabricating Department overhead rate...
-
Minor Co. has a job order cost system and applies overhead based on departmental rates. Service Department 1 has total budgeted costs of $168,000 for next year. Service Department 2 has total...
-
What are the stages in the product life cycle?
-
What is the hype cycle?
-
What is meant by the term agile innovation?
Study smarter with the SolutionInn App