Question 1

Jim Davis Company processes hogs into three products, chops, bacon and sausage. Production and selling price data follow:  Bacon was smoked, sliced and packaged after the split-off point. The cost incurred for these processes was $100,000. Sausage was ground and formed into patties after the split-off. This process cost $60,000.
If joint processing costs were $1,500,000, calculate the total cost of each product using the adjusted sales value method.

Accepted Answer

The answer of Jim Davis Company processes hogs into three...

Question 2

Howard Poster Incorporated had 12,000 units of work in process in Department A on October 1. These units were 60 percent complete as to conversion costs. Materials are added in the beginning of the process. During the month of October, 38,000 units were started and 40,000 units were completed. Howard had 10,000 units of work in process on October 31. These units were 75 percent complete as to conversion costs.
1) Compute the equivalent units for materials and conversion costs for the month of October using the FIFO method.
2) Using the average cost method determine the equivalent units for materials and conversion costs for the month of October.

Accepted Answer

The answer of Howard Poster Incorporated had 12,000 units of...

Question 3

Logan, Inc., had 9,000 units of work in process in Department M on March 1 that were 50 percent complete as to conversion costs. Materials are introduced at the beginning of the process. During March, 18,000 units were started, 20,000 units were completed, and there were 1,000 units of normal losses. Logan had 6,000 units of work in process at March 31 that were 60 percent complete as to conversion costs. Under Logan's cost accounting system, lost units reduce the number of units over which total cost can be spread. Using the average cost method, what were the equivalent units for March for conversion costs?

Accepted Answer

The answer of Logan, Inc., had 9,000 units of work...

Question 4

Nate Company manufactures Products A and B from a joint process that also yields a by-product, X. Nate Company accounts for the revenue from its by-product sales as a deduction from the cost of its main products. Additional information is as follows:  (1) Assuming that joint product costs are allocated using the relative sales value at split-off approach, what was the joint cost allocated to Products A and B?
(2) Prepare the journal entry to transfer the finished products to separate inventory accounts.
(3) Assuming the sales value of X is stable, prepare the journal entries to:
(a) place the by-product in stock
(b) record the sale of 3,000 units for $10,500 on account.

Accepted Answer

The answer of Nate Company manufactures Products A and B...

Question 5

The Roberto Company had computed the flow of units for Department A for the month of May as follows:  Materials are added at the beginning of the process. There were 8,000 units of work in process at May 31. The work in process at May 1 was 70 percent complete as to conversion costs and the work in process at May 31 was 60 percent complete as to conversion costs. What was the cost of the goods transferred out and in ending work in process using the FIFO method?

Accepted Answer

The answer of The Roberto Company had computed the flow...

Question 6

Kyle, Inc., instituted a new process in October. During October, 18,000 units were started in Department A. Of the units started, 2,000 were lost in the process, 12,000 were transferred to Department B, and 4,000 remained in work in process at October 31. The work in process at October 31 was 100 percent complete as to material costs and 15% complete as to conversion costs. Material costs of $78,400 and conversion costs of $52,920 were charged to Department A in October. What were the total costs transferred to Department B and assigned to ending work in process using the average cost method?

Accepted Answer

The answer of Kyle, Inc., instituted a new process in...

Question 7

Keith Company manufactures Products A, B, and C from a joint process. Additional information is as follows:  Assuming that joint costs are allocated using the relative sales value at split-off approach, what was the sales value at split off for Product A?

Accepted Answer

The answer of Keith Company manufactures Products A, B, and...

Question 8

Howard Poster Incorporated had 12,000 units of work in process in Department A on October 1. These units were 60 percent complete as to conversion costs. Materials are added at the end of the process. During the month of October, 38,000 units were started and 40,000 units were completed. Howard had 10,000 units of work in process on October 31. These units were 75 percent complete as to conversion costs.
1) Compute the equivalent units for materials and conversion costs for the month of October using the FIFO method.
2) Using the average cost method determine the equivalent units for materials and conversion costs for the month of October.

Accepted Answer

The answer of Howard Poster Incorporated had 12,000 units of...

Question 9

The Roberto Company had computed the flow of units for Department A for the month of May as follows:  Materials are added at the end of the process. There were 8,000 units of work in process at May 31. The work in process at May 1 was 30 percent complete as to conversion costs and the work in process at May 31 was 20 percent complete as to conversion costs. What was the cost of the goods transferred out and in ending work in process using the FIFO method?

Accepted Answer

The answer of The Roberto Company had computed the flow...

Quiz 6: Process Cost Accounting Additional Procedures

Keith Company manufactures Products A, B, and C from a joint process. Additional information is as follows: Assuming that joint costs are allocated using the relative sales value at split-off approach, what was the sales value at split off for Product A?