3t3113Exercise 1 6-15 Completing a process cost summary L..docx

3t3113
Exercise 1 6-15 Completing a process cost summary L.O. C3
The following partially completed process cost summary
describes the May production activities of Raman
Company. lts production output is sent to its warehouse for
shippinll.
Er;uiwlent units of production
Units ttra,nsfened out
Units cif r::nding goods in process
Equiwllernt units of production
Costs per EUP
Costs ofllleginning goods in process
Costs inin;uned this period
Total c01il;1;s $908,800
Units ir:r Jireginning goods in process 7,0A0
Units slti:rrl.ed this period 135,000
Units cr)rnpleted and transfened out 122,000
Units in r:lnding goods in process 20,000
Prepare ilr:; process cost summary using the weighted-arerage
'n,ethod. {ffi*u*"rd ysss"
#ffistr*r{;; llc$ * d**$stt*$ p$mcex *maf m*msid*r the ss$T*
I*"r tF ie *t*"ser *m$*u$at$*ns"
*nsn&r#ils li:*' the rte*r*S **$$*r #r*']sqJ$'!t. #sx'*$t the
o*$*n s*gffi irx ymu r respffiffis#.]

Direct
Materials
1 22,000
20:000
--::::::
Direct
Materials
$ 35,000
873,900
Direct F:tactory
Labor ()'verhead
122,000 1,22,000
]orooo ]o':oo
132,000 1 ,32,000
Direct l:iactory
Labor (lvrerhead
$ 1,600 {; 3,200
1041000 308,000
$105,600 {,211,200
*qls* g*wr ffi{-$F
ffi,e***nd qlth**n
RAMAN COMPANY
Process Cost Summary

For Month Ended May 31
to ProductionCosts Ch
,-t- L-- -E r .
ezts.mhecl oud. ntcg raw hi ll I .com/hm,tpx
Total cori;1l,s to account for
Units to account for
Units s;tmfted this period +
nt
tinnin,* qoods in orocess
Total unil,s to account for
E,quiralent Units of Production (EUP)
Units c;ornpleted and transfened out T
l u"itr ,;; ii
Equivaft,:nirl, units of production
Cost per EUP
lc"rts ;;i,"i
f c"qL-_iil,
Total cosrt$
lEqri*il1|
Cost peir lEiiUP

i:lg,800
1)rl15r8oo
.,^.'.:."1.'?:::o:,
Unit co::,t information
135,00:|
7,00r.I
Units accounted for
Compteted & transfened out z r
Endina qoods in process i ''
1 22,000
20,000
Direct Materia s
Total units accounted for
Direct Labor Factory Orcrhead
Direct Material:rs
$
Factory Owrhead
$
Cost assignment and reconciliation

per EUP
Direct Labor
per EUP per EUP
1t11
uosts relnfi'Tereo oul
Factory errre*r€?d f
Direct niaterials r
Direct latNrr !r
3lsl13 Assigrrrent PrintMew
Total trant'i'lbned out
Costs of endino ooods in orocess
(Click to s,elect) ?
Direct rnaterials ?
Factorl' rll'v{grhead s
Total enrlinrg goods in process
Total costs; accounted for
Y$:nrffi.
llllorkshr::r:r1l;
Fxercise :tti-f 5 Cornplefirig a prCIsess cssf s{Jrnff?ary

r.o. c3
Exercise 't6-4 Recording overhead casts L.O. P3
Prepare joumal entries to record the following production
acti,ities.
l. Paid civerhead costs (otherthan indirect materials and indirect
labor) of $23,000. {Omit the "$" sign in
your rcsponse,)
2.
General Joumal
trIII
tF
General Journal
EPl:r
ti
.;
Vierar-.flint #1
Worksh,Hret
Debit Credit
23,004
2. Used $58,000 of direct laborin production. Applied oerhead
at ti5% of direct laborcosts. {Omitthe "$"
sign in your response,)
Debit

49,300
23,000
Credit
49,300
.+w{- 'i.-i' -
3.
Exercise '16-11A Costs assigned to output-FlFO L.O. C4, P4
During lpril, the production department of a process
manuhcturing system completed a number of units of
a produbt and transfened them to fnished goods. Of these
tmnsfr;ned units, 59,000 were in process in the
production department at the beginning of April and 310,000
werc started and completed in Apdl. Apdl's
beginning inrcntory units were 7oo/o comdete with respect to
mal:erials and 30Yo complete with respect to
labor. At the end of Aptil, 87,000 additional units were in
proces$ in the production department and rvere
600/o complete with respect to materials and 600/o complete
with rerspect to labor.
The production department had $1,025,000 ofdirect materials
an(l $672,000 of direct labor cost charged to
it during April. Also, its beginning in€ntory included $121,840
of direct materials cost and S49,890 of direct
labor.
1.
UsirigtheF|FOmethod,computethedirectmaterialscostandthedirec
tlaborcostperequiraalentunit

fcr the department. {Round your ans!rers to 2 decimal places,
Omit the "$" dgn in your
reqionse.)
Direct Materials Direct Labor
Cost per equiralent unit $ EUP $ EUP
ezto.nfecloud.nrcg ravr hi ll.corn/hrntpx
Lx
2111
Y313 Assignnent PrintMarrr
2. Using the FIFO method, assign April's costs to the
depall.ment's output--specifically, its units
transfened to finished goods and its ending goods in process
inentory. {Round your intermediate
calcuiations and final ansffer to 2 decimal places Omit th€ "$"
sign in your risponse.)
Totarl cost $
t ',
V!E!-!r!!-dl
Hjorkshr-',rut .i;'.
4,
Exercise 1l);134 Equiualent unr'ts computed-FlFO L.O. C4
The production department in a process manufacturing system
cornpleted 196,500 units of product and

frarrsfened them to finished goods during a rccent period. Of
these units, 28,000 were in process at the
beginning oF the period. The other 168,500 units were started
and (iompleted during the period. At period
end, 25,500 units were in process.
Compute the department's equialent units of production with
respecl: to direct materials under each of the
three separate assumptions using the FIFO method for process
costing.
1. All dinslt materials are added to products when processing
begins.
Total IEUP
2. Dircct traterials a€ added to poducts erenly throughout the
process. Beginning goods in process
invenkrry was 45% comdete, and ending goods in process
inr,ent<rry was 65% complete.
Total EUP
3. One+alf of direct materials is added to prcducts r,vhen the
procer;s begins and the other half is added
lvhen lhe process is 70% complete as to direct labor. Beginning
goods in prccess inventory is 30%
comdel:e as to direct labor, and ending goods in process
imentor) is 55% complete as to direct labor.
Total EUP
View Hi!!t!l
Workshepl:

5 . .:::- -*i..*-,...
Exercise 16-;5 Recarding cost of completed goods L.O" P4
Prepare joumal entries to record the follo,ving actiVties.
l- Transfened completed poducts with a cost of $140,000 to
fnjshed goods inr€ntory. tOmit fhe "$" sign
in your response.)
General Joumal Debit Credit
@iffi 14o,ooo
@ 14o,ooo
2.
Sold$449,000ofproductsoncredit.Theircostis$174,000.{Omiil:he
"$"srigninyourresponse.}
General Joumal
@sr
Erls
@![r"*'*'d -l.l
ezto,ft*1,ecloud. rncg ra F hi I I . r:: om/l'rm.tpx
Debit Credit
449,000
449,000
174,000
3t11

3t3113
In
Raw materiialsi purchases (on credit)
Factory pay'rcltl cost (paid in cash)
Direct
lndirect
Labor used
Direct
lndirect
Owrhead rartr:l as a percent of direct labor
Sales (on creldit)
ezto. ntrrecl rud. ncg raw hi li I.corr/l'rm.tpx
Assig nrnent Print Mew
V_iew-lJiflL#1
Workshr**t Difficulty Mediun',
^^,,.ri-* ^^ h* ^r ^^^, nrnr^r ^^^-r_ l-earning Obj*ctire: 1 S-P4
Record the transfer gffxercise' i't3-5 Reecrct'ing cosf of
conrplefect' goods *"*' ''.' ':
L.0. p4 '
- - - "'- - -- -' r c*mpl*t*4 g**r3'; t"* Finished *osds lnventory
and
C**t *f G*ods Srlld"

Exercise 16-3 Recording costs of labar L.A. P2
Prepare jr:umal entries to recod the follovrting production
actiVties.
1. lncunedtotal
laborcostof$77,000,whichispaidincash.(Omitt:he"$"signinyourre
sponse.)
General Joumal Debit Credit
Effi 77,ooo
77,000[-am
2. Used $62,000 of direct labor in prcduction. {Omit the "$"
sign in 'your response.}
General Journal
ri4
Itis
3. Used lli'n,5,000 of indirect labor. {Smit tF"re
**$o'si$n
ir"l yeiur resp*i'lse"}
General Joumal
EIrl
l-.lrr-r:torypayroll j-l
View Figl..#1
Workgher*1[ ]ri:'.".':7-';i.;;:-7;:;;;t
C-.- .",otj ':':: 2 k#CrtrCinv#ssr+ zf ;fi-. *.i-r. P+
I :*';iiitii {thij5*' ' '' 1':"--": if o''-;rl fhe tl*rar 1f

rt|t^^
lab*, ur.JblF l. .''i . ::.2* ..:...,:...,;..:i:a.-.. -.:]"
Problem 16-1 A Production cost flow and measurement: journal
enliies L.A. Pl , P2, P3, P4
[fhe foilowing Inform ation ap plies to ffi e guestrbns disp
layed b elow]
Edison Company manufacturcs wool blankets and accounts for
produc: costs using process costing. The
following infomation is available regarding its May inventories.
Beginning
.
Ending
lnr,entory lnlentory
Raw materials inventory $ 57,000 $ 49,000
Goods in pnocess inrentory 425,000 548,500
Finished gocds inwntory 636,000 333,001
The following additional information describes the company's
production i:rctivities for May.
'174,O4A
Debit Credit
62,000
62,000
Debit Credit
15,000

1 5,000
Other orrerhrerad cost (Other Accounts credited) 99,000
Materials usied
$ 300,000
1,600,000
$ 195,500
70,000
$ 707,000
893,000
12OYo
$ 3,000,000
4111
313113 Print Mew
Probtem t6-1A P ;;;;;;,*-;;;
enfnes l"O. Pf, P2, F3, F4
$ection
I
li
I
tneasuremenf,' jo

Require
the cost of pnrducts transferred ful.n production to
youfl !sp*nse.)
of products transfened
the cost of goods sold- {Omit the "gnn sign in your re
rl
I
co#
rl
il
rl
I
I
I
i
Prabtemriti
il
ii
'l
I
.i

l
&-t A Fart 1
{(a)
{ (b}
goods. {Omit the
*'$" si$n
- 4irecl
{Smit the "$" sisn in your
tn
ti
goods soldof
Prablem I tA Fart 2
2(a) P l joumal entry dated May 31 to rccord the raw materials
it
re$ps
General Joumal
2(b) Prepa,re joumal
respqnse.)
entry dated May 31 to record the direct materi usage. {Srnit the
nn$"

Credit
i*"- -" '--"--
-..'.."': ..:..'....:
dgn in your
n ray ler
General Joumal Credit
,-."". --. -,.....-. -. - - -, .", .,.,,:
ir y*ur2(c) Prepqrp journal entry dated May 31 to record the
indirect materfrp joumal
.espdtftn.)
General Joumal
..-..,
ir,-.-..-..'
Debit
:
-
":
-__;
it the "$" sign in your response.)
Debit Credit
i-*-':- *'***-l

..'"
.
{Ornit tha "$" sign in your
irb journal entry dated May 31 to record the payroll costs. {
lil
General Joumal
z(ej
'.......
joumal entry dated May 31
s8.l
joumal entry dated May 3't
to
rr'rrill
ll
il
Geneml Joumal
rccord the direct
to record the indireet
ezto.mf,recl qd.ncg rzur hi
{
ll.uonr/frrn.tpx

313113
General Joumal
F olerhead I
General Joumal
Factory owrhead l-
General Joumal
Finlshed goods inrentory i -
Assi g nnent Print View
Debit Credit
Debit Credit
Debit Credit
finishe ,C goods. {*rxtit t$rs
u'$'o
x$gx'r im y*isn
Debit Credit
Factory payroll i-
2(g)PrepaLre joumal entry dated May 31 to record the other
orerhei:rd costs. {Omit the "$" sign in your

respc,n$e.)
[]taLte
Mi;rr1 31
Detil,e
Malr 31
Dial.r:l
Mar'y |ll
Other accounts i .
2(h)Prepare joumal entry dated May 31 to record the
orerhead;:rpplied. {omit the "$" sign in your
response.)
Date General Joumal Debit Credit
Mary',31 Goods in process inrentory i -
Factory o,erhead ; '.
2(i) Prepare joumal entry dated May 31 to record the goods
transfu'red fiom production to finished goods.
(Omlt the "$" sign in your response.)
Goods in process inrentorv iv
2(i) Prepiar,cr joumal entry dated May 31 to record the sale of
respull"r**e.)
Dirle General Joumal
tr13',1 1i3,1 Accounts r€ceia:ble i-

Finished goods inrentorv i r
9.
Pr*blem f $,i;i:,4 Part I
Required:
1(a) Detenrniine the equiwlent units of production with respect
to direct larbor.
ezto.mhecl oud.mcg ra F hi I L r::omlhm.tpx
Wcrks*r*,e,it
{71/"tn-' ' "
Problem 16-24 Cost per equiuatent unit; cosfs assrgned fo
produc,s L.A. C2, C3
[The folowing inform ation applies to the guestbns disp I ayed b
e low.]
Fairfax Company uses weighted-a'eEge process costing to
account for its production costs. Direct labor is
added er,enly throughout the process. Dircct materials are added
at th,3 beginning of the process. During
September, the company transfened 785,000 units of product to
finisherd goods, At the end of September,
the goods in process in,entory consists of 179,000 units that are
50t/o complete with respect to labor.
Beginning inu?ntory had $375,960 of direct materials and
$65,588 of din;ct labor cost. The direct labor cost
added in Seplember is $1,246,162, and the direct materials cost
added ir; $2,5.16,040.
Section Breatk Prablern 16-24 Coe;l frer equivalent unit costs
assigned fo prodilct:; i-.O. C2, C3

6t11
313113 nrnent Print Mers
materials.{(b) the equiwlent units of production with respect to
d
both the direct labor cost and the direct materials
to 2 decimal place- Omit the *$* s$gn in your re
Per equiulent
unit
$; i
]x,s"4+-r#rF,@aF.,--*'.--."*",
: : . :' . . -.: : : : .:.,,.$,,i,,=tr,,,,,,,,,t,t,-::::::::=::j, :: :
Par{ 3
both direct labor cost and direct materials cost assig
und your per unit co* to I decimal places and
l
Cost transfened
out
aterials $i
""" "^**--*:
|p,".,*"**'.*,'*.'.-'.,*-*'.**;
abor $i i
::::.:,:,...i..-:r.-.:::...::..., ..: -...:,,:.::'.-:::::-.::::l:i:-:.i:.-!!,1.':11t..-

.'-::
both direct labor cost and direct materials cost
{Round yoilr per unit cas*s ttr I decimal pla
ount,)
per equiralent unit. {Rcund your
.)
to units completed and transfened
I ansuvers ts the neares dollar
to ending goods in process
nd firtal ansfi.ersi to the nearest
jti'Ar-oe^
L;
1".'.* i-. a t ;tg ? $ Us rI f II At y ai-, { . ii:: f* }; ;;:- !+Lt
lrtran-' v .
2A Part 2
out.
amo
rt. .::.-t...::..
3(b) Corn
doll
12
ProSIem
Easton

start of
Proeess
ezto.nfrecl otd.mcg r aN-
Costs of ending
go4_g_"in_Prq9_-esg_
$i
"""""._____-:
: :'- l,L'''-'.=''r -':::-:':*:'i. ,
--rrd lnnlnllfil
us€ iil process
Process sosf surnmary; eg$ir/Elenf unrfs l"O. C?,
its product through a single processing Dircct materials are
added at the
, and direct labor and orrertread are added er,enly the process.
The company
reporting periods for its nreighted-aErage process accounting
system. lts Goods in
account bllours afi,er entries for dlrect materials, labor, and
onerfiead co'sts br
7tll
313113
October,

Goods in Process lnrentory
Date Explanation
Oct. '1 Balance
31 Direct materials
31 Direct labor
31 Applied owrhead
Assig nnent Print View
Acct, 1,,,lo.133
Ba lance
276,296
379,296
802,286
1 051 ,296
Unit cr:st information
Direct lVraterials
EUP
EUP
' ,-.".|1.,:
Dire
'c1:
Materials

$
$
$
EUP
per EUP
Debit Credit
103,000
423,000
249,A00
Its beginnjng goods in process consisted of $43,030 of direct
nraterials, $79,920 of direct labor, and
$153,336 of factory overhead. During October, the company
started 144,000 units and transfened 151,000
units to finished goods. At the end of the month, the goods in
procr:ss iruentory consisted of20,800 units
that were 80% complete with respect to direct labor and hctory
oeri€ad.
Required:
1' Prepare the companys process cost summary for October
using the weighted-alerage method. {Round
your {iost per EUP anslvers to 3 decimal places and c:onsider
the same in the other
calculations. Round other ans,rrers to the nearest dollar iilnount
Omit the "$" dgn in your
reryonse.)

EASTON CO.
For Month Ended October 31
Costs;
Costsi
Oharged to Production
l:eginning goods in processTotal
Costs
Total inauned this period
Totail r::;rlsts to account for
Units r;tarted this period ?
xF
TBeginniing goods in process
Total unrits to account for
Equiwlent units of production
Units r:ompleted & transfered out tr
Unitli r:f ending goods in process T
Equirreril,ent units of production
Cost per EUP
Cost r:if beginning goods in process f v

Costs incuned this period i -
Total c;osts
Equi'unlent units of production t?
Cost per EUP
Units accounted for
Ending goods in process ,
t{
fCompleted & transferred out
Factory OwrheadDirect Labor
EUP
EUP
EUP
Direct Labor
$
$
EUP
EUP

EUP
Factory Owrhead
$
$
EUP
per EUP $
EUP
per EUP
Costs; transfened out
Direl:lt materials i
!
:
I
I
I
]
T
ffi
!r
tl
rr
Fa,clliiyv oerhead

Direrrc,t[ labor
Total triarnsfered out
Costs; r:,f ending goods in process
ezto.mhecl oud. rncg raw hi ll l, rtomftrm.tpx 8t11
lllileet materials T
lltlrect labor I
Fiactory olerhead T
313113 Assignnent Print Mew
Total ,ending goods in process
Tot,illl r:osts to account for
2- Preparc the joumal entry dated October 31 to transfer the cost
of the completed units to fnished goods
inenlffy. {Omit the "$" sign in your response,}
Di'rl e,
Oct, $1
Debit CreditGeneral Joumal
Finistred goods inwntory i-
Goods in process inlentory f r
Wnrksher:lt , -..., ;-'

I "'.-" .-.',
Prcb feni' '! t:'4{ Pracess casf sum ?n ary; eguiyafenf ^
. , :^,
unr'fs j-.C). rl::?. *3, F4
- -j ,
Problem 16-54 Process cost sumrnary, equiualent units, cosf
esfr?r?ates L.O. C2, C3, P4
[The tDflowing information applies to fhe guesfibns displayed
balowJ
Ogden Co. manufactures a single product in one department. All
direct materials are added at the
beginning of the manufacturing process. Direct labor and
olerhead are added e,enly throughout the
process. The company uses monthly reporting periods for its
weighterla€rage plocess cost accounting.
During Oct,olcer, the company completed and transfened 23,200
units of product to finished goods
inrentory. fts 4, 100 units of beginning goods in process
consisted of $i10,0O0 ol direct materials, $205,300
of direct labor, and $98,840 of factory oerhead. lt has 2,200
units (10t)o/o complete with respect to direct
materials anrl 80% complete with respect to direct labor and
owrhe.:rd) in process at month-end. After
entries to record direct materials, direct labor, and olerhead for
October; the company's Goods in Process
lnentory account fullows.
Goods in Process ln,entory Acct. Nc.133
Date Explanation Debit Credit Balanr:e
Oct. 1 Balance 32"1.,140
31 Direct materials 495,900 820,040

31 Direct labor 1,288,300 2,1011,340
31 Applied or,erhead 982,440 3,090,780
Section Bre;aik.
units.coste$trf/.atesL.a.c2,cG,p4 ,::,'".';'.:
'4:::: :; 'eirrrt - 'e''^::'-'.;'s"'-'
;;;J:-t.:lld.
':":''"" "-:;''-'lartd
13. '-1
Prablem 16-5.4 Part 1
l. Prepare the company's process cost summary for October
using lhe weightedarerage method.{Round
your cost per EUP ans,yers to 2 decimal places and r::cnsider
the same in the other
calculi:rtions. Round other answers to the nearest dollar arnosnt
Omit lhe "$" sign in your
responsP.)
OGDEN CO.
For Month Ended October 31
Costs Charged to Production
(s rll'beoinninq ooods in
Dirtmt materials T
Dittrr;t labor v
Factory owrhead T

Total lleginning goods in process
Costs incuned this period
ezto. rnhecl oud. nrcg raur hi I I . c;om/hm. tpx st11
313113 Assig nnent Print View
"?" _" _
Unit cost information
D'inect labor i-
Fiarctory orrerhead i'?
llriiitect materials i.r
Totarl incurred this period
Total costs to account for
Beglinning goods in process i v
Units; started this oeriod iT
Totarl units to account for
Equiwlent units of production
E,li
@r;
Equi'*alent units of production
rerg
f'trr

Total (]osts
Effi
Cost plerr EUP
Costs; liransfened out
Farctory overhead T
Dinmt labor -
DinN:;t materials v
Total r:nrding goods in process
Total ccmts to account for
Units accounted for
Completed & transfened out v
Endino qoods in process i v
Direct Materials
EUP
EUP
..""-:::"u:. .."-"
Direct Itlaterials
$

Direct Labor
EUP
EUP
":::. ""
Direct Labor
$
Factory Overhead
EUP
EUP
_::::
Factory Owrhead
$
$ $
EUP
$ 0 per EUP
$
14.
Date

Oct. 3;1
ezto. nhecl oud. mcg raw hi I I .r::rrn/hm.tpx
Worksh*et
Pr*bl*m f S-l54 Part 1
Frob{em 16-:5,i., Part 2
2. Prepare 1ll're journal entry dated
inrentorlr {$mlt the
*'$** sign in
October 31 to transfer the cost of completed units to finished
goods
y*ur resp*ns*.)
General Journal Debit Credit
Total trernsfened out
Costs; r:f endin
10111

3t3113Exercise 1 6-15 Completing a process cost summary L..docx

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