ADM 3346 Study Guide - Midterm Guide: Cost Driver, Finished Good, Pro Rata

110 views4 pages

coppergnat769

10 Apr 2014

School

Department

Course

Professor

For unlimited access to Study Guides, a Grade+ subscription is required.

Document Summary

Flow of production physical units calculation conversion eu. Flow of production physical units calculation transferred-in eu. Started and completed(s&c) 27,000 24,000 -6,000 = 18,000. Work in process ending 12,000 12,000*100% = 12,000. Total costs assigned to completed and transferred out units ,720. Note: * all manufacturing costs per unit= 1. 5 + 1. 1 +0. 8 +1=. 40. ** manufacturing variable costs per unit=1. 5 + 1. 1 +0. 8=. 40: (1) accept the contract. There may be other factors impact department costs. 0. 123/0. 007 = 17. 57 which is larger than 2. 00 so significant: dw=2. 12>2 indicating residuals are not correlated to dependent variable. 2: (3) regression 2 is better to be used for material handling costs. Better model adjusted r2 is larger, 91%, which adds value to explanation or prediction power. Coefficients of fc and vc are all significant. Dw> 2 indicating residuals are not correlated to dependent variable: total materials handling costs. Direct materials ending balance = (,000+,000) - ,000 = ,000.

Related Questions


Weighted Average Process Costing:
Minot Processing Company manufactures one product on acontinuous basis in two departments, Processing and Finishing. Allmaterials are added at the beginning of work on the product in theProcessing Department. During December 2009, the following eventsoccurred in the Processing Department:
Units started	16,000 units
Units completed and transferred to Finishing Department	15,000 units

Costs assigned to processing:Raw materials (one unit of rawmaterials for each unit of product started)	$142,900.00
Manufacturing supplies used	18,000
Direct labor costs incurred	51,000
Supervisors' salaries	12,000
Other production labor costs	14,000
Depreciation on equipment	6,000
Other production costs	18,000

Additional information follows:
Minot uses weighted average costing and applies manufacturingoverhead to Work-in-Process at the rate of 100 percent of directlabor cost.
Ending inventory in the Processing Department consists of 3,000units that are one-third converted.
Beginning inventory contained 2,000 units, one-half converted,with a cost of $34,500 ($24,500 for materials and $10,000 forconversion).
(a) Prepare a cost of production report for theProcessing Department for December.
Minot Processing Company: Processing Department Cost of Production Report For the Month Ending December 31, 2009
Summary of units in process:
Beginning
Units started
In process
Completed
Ending
Equivalent units in process:		Materials	Conversion	Total
Units completed
Plus equivalent units in ending inventory
Equivalent units in process
Total cost to be accounted for and cost per equivalent unit in process:
Beginning work-in-process		$	$	$
Current costs
Total cost in process		$	$	$
Equivalent units in process		+	+
Cost per equivalent unit in process		$	$	$
Accounting for total costs:
Transferred out				$
Ending work-in-process:
Materials			$
Conversion
Total cost accounted for				$
(b) Prepare an analysis of all changes inWork-in-Process.
Work-in-process:
Beginning			$
Current manufacturing costs:
Direct materials		$
Direct labor
Applied overhead
Total			$
Cost of goods manufactured
Ending			$

tealbuffalo667

Harmon Company uses the weighted average method in its processcosting system. The Curing Department of Harmon Company reportedthe following information for the month of November

Work in process, beginning
Units in process, November 1	10,000
Stage of completion with respect toconversion	80%
Costs in the beginninginventory:
Materials cost	$34,500
Conversion costs	$48,600

Units started into production during the month	28,000
Units completed and transferred out	30,000

Costs added to production during the month:
Materials cost	$146,000.
Conversion cost	$194,400

Work in process, ending:
Units in process, November 30	8,000
State of completion with respect toconversion	30%

ALL MATERIALS ARE ADDED AT THE BEGINNING OF THEPROCESS

Required:

Complete the sections below.

Determine equivalent units of production

Equivalent Units

	Materials	Conversion
Transferred to next department
Ending Work in Process: Materials Conversion
Equivalent Units of Production

Compute the costs per equivalent unit

Equivalent Units

	Materials	Conversion
Cost of beginning work in process
Cost added during the period
Total Cost
Equivalent units of production
Cost per equivalent unit

Determine the total cost of ending work in process inventory andthe total cost of units transferred to the next process

Materials

Conversion

Total

Ending work in process inventory:

Equivalent units of production

Cost per equivalent unit

Cost of ending work in process inventory

Units completed and transferred out:

Units transferred to next department

Cost per equivalent unit

Costs of units completed & transferred out

Prepare a report that reconciles the total costs assigned to theending work in process inventory and the units transferred out withthe costs in beginning inventory and costs added during theperiod

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

pearhyena557

Harmon Company uses the weighted average method in its processcosting system. The Curing Department of Harmon Company reportedthe following information for the month of November

Work in process, beginning
Units in process, November 1	10,000
Stage of completion with respect toconversion	80%
Costs in the beginninginventory:
Materials cost	$34,500
Conversion costs	$48,600

Units started into production during the month	28,000
Units completed and transferred out	30,000

Costs added to production during the month:
Materials cost	$146,000.
Conversion cost	$194,400

Work in process, ending:
Units in process, November 30	8,000
State of completion with respect toconversion	30%

ALL MATERIALS ARE ADDED AT THE BEGINNING OF THEPROCESS

Required:

Complete the sections below.

Determine equivalent units of production

Equivalent Units

	Materials	Conversion
Transferred to next department	30000	30000
Ending Work in Process: Materials Conversion	8000	2400
Equivalent Units of Production	38000	32400

Compute the costs per equivalent unit

Equivalent Units

	Materials	Conversion
Cost of beginning work in process	34500	48600
Cost added during the period	146000	194400
Total Cost	180500	243000
Equivalent units of production	38000	32400
Cost per equivalent unit	4.75	7.50

Determine the total cost of ending work in process inventory andthe total cost of units transferred to the next process

Materials

Conversion

Total

Ending work in process inventory:

Equivalent units of production

Cost per equivalent unit

Cost of ending work in process inventory

Units completed and transferred out:

Units transferred to next department

Cost per equivalent unit

Costs of units completed & transferred out

Prepare a report that reconciles the total costs assigned to theending work in process inventory and the units transferred out withthe costs in beginning inventory and costs added during theperiod

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

I put my answers for part 1 and 2 please answers part 3and 4. Put your answers in the table please.

goldwolf947

ADM 3346 Study Guide - Midterm Guide: Cost Driver, Finished Good, Pro Rata

Document Summary

Get access

Related Documents

ADM 3346 Chapter Notes - Chapter 18: Finished Good, Vajrayana

COMM 305 Chapter Notes - Chapter 4: Gross Margin

ADMS 2510 Study Guide - Midterm Guide: Management Accounting, Finished Good, Cookhouse

Related Questions