Question

Explain the operation of process costing, including the way the unit costs of finished goods are...

Explain the operation of process costing, including the way the unit costs of finished goods are determined

a. Debt Credit
Work in progress Department Y 262000
Work in progress Department x 262000
b.
WIP Department Y 322000
Raw material 210,000
Direct Labor 45,000
Manufacturing Overhead 67,000
c.
Finished Goods inventory 669,000
WIP Inventory Dep 669,000
Business   Accounting   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1
Process costing;
Prcess costing is a costig procedure to assigne cost to the unit of production for producing large quantities of homogeneous products.
And it is a type of operating costing which helps to determine cost of unit at ech stage of production.
a The given journal entry shows that the total manufacturing cost of Department X , $ 262,000 is transferred to Department Y.
b Secondly, Raw material cost of $ 210,000 , Labor cost of $ 45,000 and Manufacturing overhead cost of $ 67,000 in Department Y is charged to production .
c Now the totat manufacturing cost of the product at the finishing stage is $ 669,000.
After completion of the product , it is transferred to finished goods inventory.
0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
5. Process Costing – Balance Sheet accounts, ending balances (4pts): Utopia, Co. makes popsicles in sequential...
5. Process Costing – Balance Sheet accounts, ending balances (4pts): Utopia, Co. makes popsicles in sequential processes, mixing and freezing. It uses process costing to account for production costs during each period. The following is information obtained from the source documents for Utopia Co. for the month of December: Raw materials purchased (direct and indirect) $208,200 Raw materials inventory (direct and indirect), beginning balance $45,600 Direct materials used – Mixing Department $95,200 Direct materials used – Freezing Department $89,700 Direct...
5. Process Costing – Balance Sheet accounts, ending balances (4pts): Utopia, Co. makes popsicles in sequential...
5. Process Costing – Balance Sheet accounts, ending balances (4pts): Utopia, Co. makes popsicles in sequential processes, mixing and freezing. It uses process costing to account for production costs during each period. The following is information obtained from the source documents for Utopia Co. for the month of December: Raw materials purchased (direct and indirect) $208,200 Raw materials inventory (direct and indirect), beginning balance $45,600 Direct materials used – Mixing Department $95,200 Direct materials used – Freezing Department $89,700 Direct...
Explain is Raw Material, Work in Progress, Finished goods and cost of goods manufactured from manufacturing...
Explain is Raw Material, Work in Progress, Finished goods and cost of goods manufactured from manufacturing company?
1) Red Company had 6,400 units remaining in their finished goods inventory. The unit manufacturing costs...
1) Red Company had 6,400 units remaining in their finished goods inventory. The unit manufacturing costs during the year were as follows: (10 points) Direct materials $84 Direct labor $32 Fixed factory overhead $14 Variable factory overhead $10 Instructions: a) Calculate the total cost of the finished goods inventory under absorption costing. b) Calculate the total cost of the finished goods inventory under variable costing
Luker Corporation uses a process costing system. The company had $176,500 of beginning Finished Goods Inventory...
Luker Corporation uses a process costing system. The company had $176,500 of beginning Finished Goods Inventory on October 1. It transferred in $853,000 of units completed during the period. The ending Finished Goods Inventory balance on October 31 was $174,200. The entry to account for the cost of goods sold in October is: Debit Cost of Goods Sold $855,300; credit Finished Goods Inventory $855,300. Debit Cost of Goods Sold $855,300; credit Work in Process Inventory $855,300. Debit Cost of Goods...
Hornsby has a single production department, and uses a process-costing system. The balance in its Work-in-Process...
Hornsby has a single production department, and uses a process-costing system. The balance in its Work-in-Process account on January 1 was $68,000. The account was charged with direct materials, direct labor, and manufacturing overhead of $450,000 throughout the year. If a review of the accounting records determined that $86,000 of goods were still in production at year-end, Hornsby should make a journal entry on December 31 that includes: A) a credit to Work-in-Process Inventory for $86,000. B) a debit to...
Sleep Tight manufactures comforters. The estimated inventories on January 1 for finished goods, work in process,...
Sleep Tight manufactures comforters. The estimated inventories on January 1 for finished goods, work in process, and materials were $36,000, $31,000 and $27,000 respectively. The desired inventories on December 31 for finished goods, work in process, and materials were $43,000, $37,000 and $20,000 respectively. Direct material purchases were $570,000. Direct labor was $230,000 for the year. Factory overhead was $143,000. Finished goods inventory, January 1 $ Work in process inventory, January 1 $ Direct materials: Direct materials, January 1 $...
1. A company had beginning inventories as follows: Direct Materials, $300; Work-in-Process, $500; Finished Goods, $700....
1. A company had beginning inventories as follows: Direct Materials, $300; Work-in-Process, $500; Finished Goods, $700. It had ending inventories as follows: Direct Materials, $400; Work-in-Process, $600; Finished Goods, $800. Material Purchases (net including freight) were $1,400, Direct Labor $1,500, and Manufacturing Overhead $1,600. What is the Cost of Goods Sold for the period? $4,100. $4,200. $4,300. $4,400. 2. The journal entry to record the completion of a job in a job costing system is: A. Finished Goods Inventory xxx...
Sleep Tight manufactures comforters. The estimated inventories on January 1 for finished goods, work in process,...
Sleep Tight manufactures comforters. The estimated inventories on January 1 for finished goods, work in process, and materials were $37,000, $34,000 and $25,000 respectively. The desired inventories on December 31 for finished goods, work in process, and materials were $44,000, $33,000 and $19,000 respectively. Direct material purchases were $575,000. Direct labor was $206,000 for the year. Factory overhead was $147,000. Prepare a cost of goods sold budget for Sleep Tight, Inc. Sleep Tight, Inc. Cost of Goods Sold Budget For...
Raw materials purchases (on credit).  Assume the firm purchased $282,000 worth of raw materials in March. Direct...
Raw materials purchases (on credit).  Assume the firm purchased $282,000 worth of raw materials in March. Direct materials used in production:  Mixing Department: $250,000;  Packaging Department: $16,500. Direct labor used in production (assume not paid in Cash, use the Factory Wages Payable account for the credit):  Mixing Department: $60,000;  Packaging Department:  $31,800. Overhead costs applied:  Mixing Department: $84,000;  Packaging Department:  $44,520. Actual Indirect materials used:  $16,200. Actual Indirect labor used (assume did not pay Cash, use the ‘Factory Wages Payable’ account for the credit):  $23,700. Actual other overhead costs incurred:  $88,750 (credit...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT