Acc560 Managerial Accounting: Week 2 (E3-9, E3-14, P3-2A)

Acc560 Managerial Accounting
Week 2 (E3-9, E3-14, P3-2A)

E3-9
Podsednik Company has gathered the following information.
Units in beginning work in process -
Units started into production 36,000
Units in ending work in process 6,000
Percent complete in ending work in process:
Conversion costs 40%
Materials 100%
Costs incurred:
Direct materials 72,000
Direct labor 81,000
Overhead 97,200

Instructions:
a. Compute equivalent units of production for materials and for conversion costs.
b. Determine the unit costs of production.
c. Show the assignment of costs to units transferred out and in process.

E3-14
Container Shipping, Inc. is contemplating the use of process costing to track the cost of its operations. The operation consists of three segments (departments): receiving, shipping, and delivery. Containers are received at Container's docks and sorted according to the ship they will be carried on. The containers are then loaded onto a ship, which carries them to the appropriate port of destination. The containers are then off-loaded and delivered to the receiving company.
Container shipping wants to begin to use process costing in the shipping department. Direct materials represent the fuel costs to run the ship, and "Containers in transit" represents work in process. Listed below is information about the shipping department's first month's activity.
Containers in Transit April 1 -
Containers loaded 800
Containers in Transit April 30 350 40% of direct materials and
30% of conversion costs
Instructions:
a. Determine the physical flow of containers for the month.
b. Compute the equivalent units for direct materials and conversion costs: (Round answers to 0 decimal places, e.g. 125.)


P3-2A
Ortega Industries Inc. manufactures in separate processes furniture for homes. In each process, materials are entered at the beginning, and conversion costs are incurred uniformly. Production and cost data for the first process in making two products in two different manufacturing plants are as follows.
Cutting Department
Plant 1 Plant 2
Production Data-July T12-Tables C10-Chairs
Work in process units, July 1 - -
Units started into production 20,000 16,000
Work in process units, July 31 3,000 500
Work in process percent complete 60 80

Cost Data-July
Work in process, July 1 - -
Materials 380,000 288,000
Labor 234,400 125,900
Overhead 104,000 96,700
Total 718,400 510,600

For each plant:
1. Compute the physical units of production. (If answer is zero, please enter 0. Do not leave any fields blank.)
2. Compute equivalent units of production for materials and for conversion costs.
3. Determine the unit costs of production.
4. Show the assignment of costs to units transferred out and in process.
5. Prepare the production cost report for Plant 1 for July 2008. (If answer is zero, please enter 0. Do not leave any fields blank.)
Powered by