Chapter 4 Process Costing and Hybrid Product-Cosling Systems c. 'l hc July' I $ork in process rvas 30 perccnt complete as to cott'vu-rsiot't' d. 'l'he.lu11' 3 I rvork in process was 40 percent conlpletc as to conYersion' Required: Con.rpute thc rnissing amounts. and preparc the linn's.luly productign rcport. 'ltiangle Fastener Cotporation accumulates costs for its single product using process costing. Direct material is added at the beginning ofthe production process. and conversion activity occurs uniformly throughout the process. A partially completed production report tbr the month of May follows. Muc0m no[ort For lfte tonfi ol ilay Percentage of Equivalent units Completion Physical with Respect Direct Units t0 Conversion Material ConverCon 35,000 35 000 20,000 1 6,000 159 Problem,l-28 Partial Prcduction Report; iournal Entries, Weighted- Average Method Problem tS-29 Strai gntf orward V'/ei ghted- Average Process Costing; Step-by-Step Approach 7. Work in process, May 1 ...,.. .. ..,., 25,000 404/o Units started during lVay ,.,.................,. '. 30,000 Total units t0 account for ...........,..,.... 55!00 Units completed and transferred out during May .,.,..... ,. '.... 35'000 Work in process, lVay 31 ................ 20,000 B0o/o Total units accounted for 55,000 .-Diroct # thateriat fiverslon Costs incurred during MaY Total costs to account {0r ...........,........ Bequired: l. Contpletc cach o1'the lollorving proccss-costing steps using the r'veighted-avorage rncthod: a. Calculationoleqttivalent units. b. Conrputation ol'unit costs. c. Anall'sis oltotal oosts. Z. prepare a joumal entry to record the transfcr of thc cost of goods completcd and transf'en'ed out during May. Moravia compan,v processes and packages cream cheese. 1-he lollorving auru t ruJI .- the nronth ofApril. Conversion activity ocours uniformll throughout the production process. $1 43 000 1 65 000 s3o8!00 $ 474,700 2,009,000 $a1ry00 $ 617 200 ?,1/ 4.AAA s2,791 ,700 Work in process, April 1-10,000 units: Direct material. 1 00% complete, cost o{ $ 22,000 4 500Conversion 20% complete, cost ot Balance in work in process, April 1 ,, ...,.......,,. ., $ 26,500 Unils completed during April and translerred out to finished'goods inventory 80,000 Work in process, April 30: Direct material: '100% comPlete Conversion: 3314% complete Costs incurred during APril: Conversron costs: Applied manrfactuttng overhead $ 52,800 r 05,600 q!!r00 Module 3 Lecture Notes Demand, Supply, and Equilibrium; Elasticity and Consumer Behavior When applying supply and demand analysis to the real word, do not forget that several markets may be operating simultaneously.  For example, the college includes a market in which students pay tuition, a market for textbooks, a several labor markets for the staff and so on.  Remember to clearly state the market and then ask: Which good or service is being bought and sold?  Who are the suppliers?  Who are the d ...

1. Chapter 4 Process Costing and Hybrid Product-Cosling Systems
c. 'l hc July' I $ork in process rvas 30 perccnt complete as to
cott'vu-rsiot't'
d. 'l'he.lu11' 3 I rvork in process was 40 percent conlpletc as to
conYersion'
Required: Con.rpute thc rnissing amounts. and preparc the
linn's.luly productign rcport.
'ltiangle Fastener Cotporation accumulates costs for its single
product using process costing. Direct
material is added at the beginning ofthe production process. and
conversion activity occurs uniformly
throughout the process. A partially completed production report
tbr the month of May follows.
Muc0m no[ort
For lfte tonfi ol ilay
Percentage of Equivalent units
Completion
Physical with Respect Direct
Units t0 Conversion Material ConverCon
35,000 35 000
20,000 1 6,000
159

2. Problem,l-28
Partial Prcduction Report;
iournal Entries, Weighted-
Average Method
Problem tS-29
Strai gntf orward V'/ei ghted-
Average Process Costing;
Step-by-Step Approach
7.
Work in process, May 1 ...,.. .. ..,., 25,000 404/o
Units started during lVay ,.,.................,. '. 30,000
Total units t0 account for ...........,..,.... 55!00
Units completed and transferred out during May .,.,..... ,. '....
35'000
Work in process, lVay 31 ................ 20,000 B0o/o
Total units accounted for 55,000
.-Diroct #
thateriat fiverslon
Costs incurred during MaY
Total costs to account {0r ...........,........
Bequired:
l. Contpletc cach o1'the lollorving proccss-costing steps using

3. the r'veighted-avorage rncthod:
a. Calculationoleqttivalent units.
b. Conrputation ol'unit costs.
c. Anall'sis oltotal oosts.
Z. prepare a joumal entry to record the transfcr of thc cost of
goods completcd and transf'en'ed out
during May.
Moravia compan,v processes and packages cream cheese. 1-he
lollorving auru t ruJI .-
the nronth ofApril. Conversion activity ocours uniformll
throughout the production process.
$1 43 000
1 65 000
s3o8!00
$ 474,700
2,009,000
$a1ry00
$ 617 200
?,1/ 4.AAA
s2,791 ,700
Work in process, April 1-10,000 units:
Direct material. 1 00% complete, cost o{ $ 22,000
4 500Conversion 20% complete, cost ot
Balance in work in process, April 1 ,, ...,.......,,. ., $ 26,500

4. Unils completed during April and translerred out to
finished'goods inventory 80,000
Work in process, April 30:
Direct material:
'100%
comPlete
Conversion: 3314% complete
Costs incurred during APril:
Conversron costs:
Applied manrfactuttng overhead
$ 52,800
r 05,600
q!!r00
Module 3 Lecture Notes
Demand, Supply, and Equilibrium; Elasticity and Consumer
Behavior
When applying supply and demand analysis to the real word, do
not forget that several markets may be operating

5. simultaneously. For example, the college includes a market in
which students pay tuition, a market for textbooks, a several
labor markets for the staff and so on. Remember to clearly state
the market and then ask: Which good or service is being bought
and sold? Who are the suppliers? Who are the demanders?
Within one institution such as a college there will be several
markets.
It is important to understand the concept of elasticity and its
importance in business and government policy decisions.
Consider the following examples:
Disneyland: why is admission less for those who can show a
Southern California driver’s license? Airline travel: why do
airlines charge less for a Saturday night stay? Renting a house:
when property taxes increase, does the landlord or tenant pay it?
Consumer surplus is an important concept to understand. For
example, in purchasing a used car advertised in the newspaper,
a buyer will not reveal the prices at which he or she will
purchase, nor will the seller reveal the prices at which he or she
will sell. The agreed-upon price may provide a consumer
surplus to the buyer.
Required Videos:
Please review the following videos:
· Consumer Surplus Introduction
· Total Consumer Surplus
· Producer Surplus
· Market Equilibrium
· Changes in Market Equilibrium
· Price Elasticity of Demand
· Elasticity of Supply
Required Web Resources:
Please review the following articles:
· Bezawada, R., & Pauwels, K. (2013). What Is Special About
Marketing Organic Products? How Organic Assortment, Price,
and Promotions Drive Retailer Performance. Journal Of
Marketing, 77(1), 31-51.
· Deltas, G., Salvo, A., & Vasconcelos, H. (2012). Consumer-

6. surplus-enhancing collusion and trade. RAND Journal Of
Economics (Blackwell Publishing Limited), 43(2), 315-328.
· Guo, L., & Zhang, J. (2012). Consumer Deliberation and
Product Line Design. Marketing Science, 31(6), 995-1007.
· Ceriani, L., & Florio, M. (2011). Consumer surplus and the
reform of network industries: a primer. Journal Of Economics,
102(2), 111-122. doi:10.1007/s00712-010-0172-x.
· Gulati, T. (2011). Demand curves and partial incorporation of
information in IPO pricing. Journal Of Finance & Accountancy,
81-120
[INSERT TITLE HERE] 2
Running head: [INSERT TITLE HERE]
[INSERT TITLE HERE]
Student Name
Allied American University
Author Note
This paper was prepared for [INSERT COURSE NAME],

7. [INSERT COURSE ASSIGNMENT] taught by [INSERT
INSTRUCTOR’S NAME].
Directions: Please write a 1000-1500 word paper in which you
address the questions below. Please format your paper
according to APA guidelines (including a title page). Make
sure to cite your references in a reference section. Please visit
the Academic Resource Center for guidelines on using LIRN
and APA format.
Research the recent changes in the price of gasoline in the
United States. Find and include a graph of the changes over
time.
What are some of the reasons for these changes? Draw demand
and supply graphs to illustrate the effect of shifts in demand
and/or supply on the equilibrium price and quantity of gasoline
(graphs may be hand-written and scanned).
What are the elasticity of demand and supply for gasoline and
how does that affect consumers and producers of gasoline?
What do you think will happen to the price of gasoline in the
future and why? What are some ways that the United States can
keep the price of gasoline under control?
[INSERT TITLE HERE] 1
Running head: [INSERT TITLE HERE]
[INSERT TITLE HERE]

8. Student Name
Allied American University
Author Note
This paper was prepared for [INSERT COURSE NAME],
[INSERT COURSE ASSIGNMENT] taught by [INSERT
INSTRUCTOR’S NAME].
PART I: SHORT RESPONSE
Directions: Please provide detailed and elaborate responses to
the following questions. Your responses should be a minimum
of 1 to 2 paragraphs and should include examples from the
reading assignments or personal experience, if possible.
1. Explain how the price of a good you buy is affected by
changes in the prices of (a) substitute goods and (b)
complementary goods.
2. It has just been reported that Happy Smile toothpaste
reduces your cavities by 70 percent, while whitening your teeth
and freshening your breath. Explain the report’s likely effect
on the price and quantity of this toothpaste’s sales.
3. Do you agree with this statement: “As price goes up,
demand goes down”? Explain your answer.
4. Why does the demand curve slope downward?

9. 5. Why does the supply curve slope upward?
6. If you were a seller, why would you want to limit supply—
either by keeping out new market entrants or by establishing
production quotas for everyone And why would you hate that if
you were a consumer?
7. How could an economic crisis in Southeast Asia cause the
price you pay for gasoline to fall?
8. If marijuana were legalized, what do you think would
happen to the supply and demand curves and the price?
9. You’re moving into a new house one week from today.
Checking the local newspaper and the phone book, you find 10
movers. Each one of them gives you a quote at least $1,000
more than you think you should pay. Explain what you will do
in terms of demand and supply.
10. During recessions Walmart’s low prices attract more
customers. Explain why this means that Walmart is selling
inferior goods.
11. The American Medical Association announces that eating
three apples a day will promote good health. How would this
affect the demand for apples and the equilibrium price and the
quantity sold?
PART II: JOURNAL ACTIVITY
Directions: Choose a topic from this week’s learning that you
found intriguing. Then visit a media website (CNN, MSN, etc.)
and choose a current event that pertains to the topic of your
interest.

10. When completing this assignment, you will want to include the
following:
Brief reaction to the article/work (article should relate to the
current course learning)
Explain why you feel this article pertains to class
Summary of the article/work: Summarize the importance of the
topic vs. our class learning
Bibliographical entry – Follow APA format for both the current
event and case study
Work will be double spaced, two-three pages in length and
follow the format listed below:
Summary: A brief description of the premise of the article.
Background: What was the basis for the article? What caused
the author to write the article?
Findings: What were the results/findings the article
made?Reaction to the article: What did you think?
The current event assignment must be typed, double-spaced,
with 1-inch margins and 12-point type following APA format.
A title page and reference page are mandatory.
Note: You may utilize LIRN to help you locate an article.
Please visit the Academic Resource Center for guidelines on
using LIRN and APA format.
158
I ProHem/t-26
Strai ghtforuard Weighted-
Average Process Costin g,

11. Stepby-Step Approach
([0 3,4,5]
2. Total equivalent units,
conversion: 226,044
r PruHemr+-z7
Missing Data; Production
Beprt Weighted-Average
(L0 4,5,6)
Cost remaining in ending
work-in-process inventory,
direct material: $1 23 750
Total cost of July 3l work in
process: $202,950
Ghapter 4 Process Costing and Hybrid Product-Costing Systems
Piscalalvay Plastics Company manulactures a highly specialized
plastic that is used extensivcly in the
automobile industry. The tbllorving data have been cor:rpiled
for the montli of .lune . Conversion activity
occurs unifomrly throughout the production process.
Work in process, June 1-50,000 units
Direct material: I 009'o compiele cost 0f ...,,,.... $l 2o,oo(]
34,400Convers onr 40% cornplele, cost of

12. Balance in work rn process, June 1 9M100
200,000
1 90 000
Units slarted during June
Units conrpleted during June afd trans{erred 0u1 t0 fiflshed-
g00ds inventory
Work in process, June 30:
Direct material; 100% complete
Conversion: 6070 complete
Costs incurred during June:
Conversion costs:
Applied manufacturing overhead 262,350
Required: Prepare schedules to accomplish each ofthe lbllorving
process-costing steps forthe month
ofJune. Llse the rveighted-average method ofprocess costing.
1. Analysis ofphysical florv ofunits.
2. Calculation olequivalentunits.
3. Compr-rtation of unit oosts.
1. Analysis oftotal costs.
The Ibllowing data pertain to the Vesuvius Tile Company for
July.
Worh in process. Jgly I 1in urrits) 2n.001

13. Units c0mpleted and trans{erred out during July ............,........
?
Wotk ir orocess. Juiy 3l iio -' ts) ... 1 5.000
Total equivalent unrrs: conve's on
Work in process, July 1: conversion ?
Costs incurred during July: direct matenal ?
Costs incurred during Julyr conversion ....,. 659,40C
244.20A
1 .031 ,250
1,275.450
Work in process, July 1 r tolal cost
Cost of goods completed and transfered out during
Ju1y,,,,..,............,,.. ?
Cost remaining in ending,,vork-in-process inventory: direct
material ?
Cost remaining in ending work-in-pr0cess inventory: conversion
79,200
Add itional Information :
:1. Direct material is added at the beginning ofthe production
process: and conversion activity occurs
uniformly tfuoughout the process.
b. 'I'he company uses weiglrted-average process costing.
Trtal cos.c i"currpd dur ng July .... ......

14. Total t,osts to acc0d,rl for .......... . ..... .
Cost per equivale[t unit: direct material