Principles of Cost Accounting: Week 5 Homework (P5-1, P5-6, P5-9)

Principles of Cost Accounting
Week 5 Homework

P5-1
Eugene Products Co. produces a latex paint and uses the process cost system. Materials, labor, and overhead are added evenly throughout the process. The following information was obtained from the company's accounts at the end of February.
Production Costs
Costs Incurred during month:
Materials 30,000
Labor 20,000
Factory overhead 40,000
90,000
Production Report Units
Finished and transferred to stockroom during month 56,000
Work in process, end of period, one-fourth completed 16,000

Required:
Prepare a cost of production summary for February. (round unit costs to the three decimal places.)

P5-6 Cost of production summary, two departments; beginning inventory.
Harmon Corporation uses a process cost system. The records for the month of May show the following information:
Production Report Cutting Grinding
Units in process, May 1 5,000 10,000
Started during the month 20,000 -
Received from prior department - 15,000
Finished and transferred 15,000 10,000
Finished and on hand 5,000 -
Units in process, May 31 5,000 15,000
Stage of completion 1/5 1/3
Production Costs
Work in process, May 1:
Costs in Cutting 50,000
Materials 5,000
Labor 6,450
Factory overhead 3,550
Costs in Grinding
Materials 5,000
Labor 5,500
Factory overhead 3,500
Costs incurred during the month
Materials 37,000 40,000
Labor 45,000 44,000
Factory overhead 50,000 37,000
Total 147,000 185,000
Required:
Prepare a cost of production summary for each department.

P5-9 Cost of production summary, three departments, change in unit cost from prior department, departmental cost work sheet, journal entries, manufacturing statement
Taguchi manufacturing Co. uses the process cost system. The following information for the month of December was obtained from the company’s books and from the production reports submitted by the department heads:
Production Report
Mixing
Blending
Bottling
Units in Process, beginning of period
2500
1500
3000
Started in process during month
12500
-
-
Received from prior department
-
13000
10000
Finished and transferred
13000
10000
11000
Finished and on hand
-
500
-
Units in Process, end of period
2000
4000
2000
Stage of completion
1/4
4/5
½
Production Costs
Works in process, beginning of period
Cost in Mixing
3075
6150
Materials
1470
Labor
650
Factory Overhead
565
Cost in Blending
3660
Materials
240
Labor
905
Factory Oberhead
750

Cost in Bottling
Materials
900
Labor
3100
Factory Overhead
3080
Costs incurred during the month
Materials
15000
2500
1500
Labor
4750
8000
6500
Factory Overhead
5240
6100
7000
Total
27675
21570
31890

Required:
Prepare cost of production summaries for the Mixing, Blending, and Bottling departments
Prepare a departmental cost work sheet
Draft the journal entries required to record the month’s operations
Prepare a statement of cost of goods manufactures for December.
Powered by