Question

Remington Inc. is contemplating the use of process costing to track the costs of its operations....

Remington Inc. is contemplating the use of process costing to track the costs of its operations. The operation consists of three segments (departments): Receiving, Shipping, and Delivery. Containers are received at Remington’s docks and sorted according to the ship they will be carried on. The containers are loaded onto a ship, which carries them to the appropriate port of destination. The containers are then off-loaded and delivered to the Receiving Department.

Remington wants to begin using 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 0
Containers loaded 1,200
Containers in transit, April 30 340, 40% of direct materials and
20% of conversion costs


(a) Determine the physical flow of containers for the month.

Physical flow of containers

Type your answer here


(b) Calculate the equivalent units for direct materials and conversion costs.

Homework Answers

Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
James Company uses process costing to track its costs in two sequential production departments: Forming and...
James Company uses process costing to track its costs in two sequential production departments: Forming and Finishing. The following information is provided regarding the Forming Department: Forming Department Month Ended July 31 Unit information Beginning work in process, July 1 --- 6,000 Started into production during July --- 18,000 Completed and transferred to Finished Department during July --- 16,000 Ending work in process, July 31 (30% complete as to direct materials and 40% complete as to conversion costs) --- 8,000...
Hudson Dock Company manufactures boat docks on an assembly line. Its standard costing system uses two...
Hudson Dock Company manufactures boat docks on an assembly line. Its standard costing system uses two costs categories, direct materials and conversion costs. Each tractor must pass through the Assembly Department and the Finishing Department. Direct materials are added at the beginning of the production process. Conversion costs are allocated evenly throughout production. Data for the Assembly Department for May 20X5 are: Work in process, beginning inventory 70 units Direct materials (100% complete) Conversion costs (25% complete) Units started during...
(TCO 3) James Company uses process costing to track its costs in two sequential production departments:...
(TCO 3) James Company uses process costing to track its costs in two sequential production departments: Forming and Finishing. The following information is provided regarding the Forming Department: Forming Department Month Ended July 31 Unit information Beginning work in process, July 1 --- 6,000 Started into production during July --- 18,000 Completed and transferred to Finished Department during July --- 16,000 Ending work in process, July 31 (30% complete as to direct materials and 40% complete as to conversion costs)...
MediSecure, Inc., uses the FIFO method in its process costing system. It produces clear plastic containers...
MediSecure, Inc., uses the FIFO method in its process costing system. It produces clear plastic containers for pharmacies in a process that starts in the Molding Department. Data concerning that department’s operations in the most recent period appear below: Beginning work in process: Units in process 510 Completion with respect to materials 78 % Completion with respect to conversion 33 % Units started into production during the month 153,600 Units completed and transferred out 153,610 Ending work in process: Units...
The Weiss Tractor Company manufactures small garden tractors on a highly automated assembly line. Its costing...
The Weiss Tractor Company manufactures small garden tractors on a highly automated assembly line. Its costing system uses two cost categories, direct materials and conversion costs. Each tractor must pass through the Assembly Department and the Testing Department. Direct materials are added at the beginning of the production process. Conversion costs are allocated evenly throughout production. Townsend Tractor uses weighted-average costing. Data for the Assembly for April 2008 are : Work in process, beginning inventory 400 units Direct materials (100%...
The Daltry Company manufactures a single product on a highly automated assembly line. Its costing system...
The Daltry Company manufactures a single product on a highly automated assembly line. Its costing system uses two cost categories, direct materials and conversion costs. Direct materials are added at the end of the production process. Conversion costs are allocated evenly throughout production. The company uses weighted-average process costing. Data for the Assembly Department for April are:       Work in process, beginning inventory                      400 units             Conversion costs (30% complete)       Units started during April                                      1,200 units       Work in...
The Townsend Tractor Company manufactures small garden tractors on a highly automated assembly line. Its costing...
The Townsend Tractor Company manufactures small garden tractors on a highly automated assembly line. Its costing system uses two cost categories, direct materials and conversion costs. Each tractor must pass through the Assembly Department and the Testing Department. Direct materials are added at the beginning of the production process. Conversion costs are allocated evenly throughout production. Townsend Tractor uses weighted-average costing. Data for the Assembly Department for April 20X8 are: Work in process, beginning inventory 400 units Direct materials (100%...
The Daltry Company manufactures a single product on a highly automated assembly line. Its costing system...
The Daltry Company manufactures a single product on a highly automated assembly line. Its costing system uses two cost categories, direct materials and conversion costs. Direct materials are added at the end of the production process. Conversion costs are allocated evenly throughout production. The company uses weighted-average process costing. Data for the Assembly Department for April are: Work in process, beginning inventory 400 units Conversion costs (30% complete) Units started during April 1,200 units Work in process, ending inventory: 250...
LiPari Company uses the FIFO method of process costing to account for the costs of its...
LiPari Company uses the FIFO method of process costing to account for the costs of its product. There are two processes, Department 1 and Department 2. Processing starts in Department 1 and moves from there to Department 2, at which point the product is complete. All materials are added at the beginning of both departments. In Department 1, there was beginning work in process of 3,000 units, 40% complete with respect to conversion. 4,000 units of were in ending work...
PZC Company had the following activities, traceable costs, and physical flow of driver units:                           &nbsp
PZC Company had the following activities, traceable costs, and physical flow of driver units:                                                                                Physical Flow of          Activities                                Costs               Driver Units    Account inquiry (hours)             $400,000                    10,000 hours    Account billing (lines)             280,000                    4,000,000 lines    Account verification (accounts) 150,000                  40,000 accounts    Correspondence (letters)               50,000        4,000 letters The above activities are used by departments A and B as follows:                                                                       A                       B    Account inquiry (hours)              2,000 hours         ...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT