🏷️ LIMITED TIME OFFER: GET 20% OFF GRADE+ YEARLY SUBSCRIPTION β†’
Log in
HomeClass Notes1,200,000US530,000

ACIS 2115 Lecture Notes - Lecture 1: Total Absorption Costing, Gross Margin, Income Statement

92 views19 pages
grayhound723
19 Dec 2015
School
Virginia Tech
Department
Accounting and Information Systems
Course
ACIS 2115
Professor
Cintia Easterwood

For unlimited access to Class Notes, a Class+ subscription is required.

Document Summary

Chapter 4 - the foundational 15: the journal entries would be recorded as follows: Wages payable 79,500: the journal entry would be recorded as follows: Manufacturing overhead 97,000: the units completed and transferred to finished goods is computed as follows: The equivalent units of production for materials and conversion are computed as follows: Cost of beginning work in process $ 16,00. The cost per equivalent unit for materials and conversion is computed as follows: Cost per equivalent unit (a) (b): and 11. The cost of ending work in process inventory for materials and conversion is computed as follows: * ,600 is the june 30 balance in the work in process . The cost of materials and conversion transferred to finished goods is computed as follows: The foundational 15 (continued: the journal entry to record the transfer of costs from work in. Process mixing to finished goods would be recorded as follows:

Get access

Grade+20% off
$8 USD/m$10 USD/m
Billed $96 USD annually
Grade+
Homework Help
Study Guides
Textbook Solutions
Class Notes
Textbook Notes
Booster Class
40 Verified Answers
Class+
$8 USD/m
Billed $96 USD annually
Class+
Homework Help
Study Guides
Textbook Solutions
Class Notes
Textbook Notes
Booster Class
30 Verified Answers

Related Documents

ADMS 2510 Chapter Notes -Activity-Based Costing, Budget, Total Absorption Costing
rosebadger398
BUAD 285b Chapter Notes - Chapter 15: Accounts Receivable, Accounts Payable, Cost Accounting
scarletdeer311
ACC-1B Lecture 4: Principles of Accounting 2 - 4
lemonwater-buffalo623

Related Questions

Clopack Company manufactures one product that goes through one processing department called Mixing. All raw materials are introduced at the start of work in the Mixing Department. The company uses the weighted-average method to account for units and costs. Its Work in Process T-account for the Mixing Department for June follows (all forthcoming questions pertain to June):

Work in ProcessҀ”Mixing Department
June 1 balance 43,000 Completed and transferred to Finished Goods ?
Materials 138,925
Direct labor 88,500
Overhead 106,000
June 30 balance ?

The June 1 work in process inventory consisted of 5,900 pounds with $22,770 in materials cost and $20,230 in conversion cost. The June 1 work in process inventory was 100% complete with respect to materials and 60% complete with respect to conversion. During June, 38,400 pounds were started into production. The June 30 work in process inventory consisted of 9,800 pounds that were 100% complete with respect to materials and 50% complete with respect to conversion.


1. Compute the equivalent units of production for conversion.

2.

For materials, what is the sum of the cost of beginning work in process inventory plus the cost added during the period?

3. What is the cost per equivalent unit for materials?

4. What is the cost of ending work in process inventory for materials?

5.

What is the cost of materials transferred to finished goods?

Clopack Company manufactures one product that goes through oneprocessing department called Mixing. All raw materials areintroduced at the start of work in the Mixing Department. Thecompany uses the weighted-average method to account for units andcosts. Its Work in Process T-account for the Mixing Department forJune follows (all forthcoming questions pertain to June): Work inProcessҀ”Mixing Department June 1 balance 45,000 Completed andtransferred to Finished Goods ? Materials 140,400 Direct labor89,500 Overhead 107,000 June 30 balance ? The June 1 work inprocess inventory consisted of 6,000 pounds with $24,250 inmaterials cost and $20,750 in conversion cost. The June 1 work inprocess inventory was 100% complete with respect to materials and60% complete with respect to conversion. During June, 38,500 poundswere started into production. The June 30 work in process inventoryconsisted of 10,000 pounds that were 100% complete with respect tomaterials and 50% complete with respect to conversion.

Pizang Corporation uses process costing. A number oftransactions that occurred in June are listed below. (1) Rawmaterials that cost $41,700 are withdrawn from the storeroom foruse in the Mixing Department. All of these raw materials areclassified as direct materials. (2) Direct labor costs of $47,700are incurred, but not yet paid, in the Mixing Department. (3)Manufacturing overhead/Conversion costs of $56,900 is applied inthe Mixing Department using the department's predetermined overheadrate. (4) Units with a carrying cost of $128,300 finish processingin the Mixing Department and are transferred to the DryingDepartment for further processing. (5) Units with a carrying costof $133,800 finish processing in the Drying Department, the finalstep in the production process, and are transferred to the finishedgoods warehouse. (6) Finished goods with a carrying cost of$129,200 are sold. Required: Prepare journal entries for each ofthe transactions listed above assuming the company uses amanufacturing overhead account.

1. Work in Processing- Mixing $41,700

Raw Material Inventory $41,700

2. Work in Processing- Mixing $47,700

Direct Labor $47,700

3. Work in Processing- Mixing $56,900

Manufacturing Overheads $56,900

4. Work in Processing- Drying $128,300

Work in Process- Mixing $128,300

5. Finished Goods $133,800

Work in Process- Drying $133,800

6. Costs of Goods Sold $129,200

Finished Goods $129,200

**Show how the above entries would differ if Pizang usesa conversion account. (Question I need answered)