The document discusses the production cost flow and measurement for Edison Company, which manufactures wool blankets using process costing. It details various inventories, production activities, and required journal entries for various costs like raw materials, labor, and overhead for the month of May. Additionally, it presents various problems related to process costing, equivalent units of production, and cost assignments for a different company, LI Company, in January.

1. Problem 20-1A Production cost flow and measurement; journal
entries L.O. P1, P2, P3, P4
[The following information applies to the questions displayed
below.]
Edison Company manufactures wool blankets and accounts for
product costs using process costing. The following information
is available regarding its May inventories.
Beginning
Inventory
Ending
Inventory
Raw materials inventory
$
60,000
$
41,000
Goods in process inventory
449,000
521,500
Finished goods inventory
610,000

2. 342,001
The following additional information describes the company's
production activities for May.
Raw materials purchases (on credit)
$
250,000
Factory payroll cost (paid in cash)
1,850,300
Other overhead cost (Other Accounts credited)
82,000
Materials used
Direct
$
200,500
Indirect
50,000
Labor used

3. Direct
$
1,060,300
Indirect
790,000
Overhead rate as a percent of direct labor
115
%
Sales (on credit)
$
3,000,000
The predetermined overhead rate was computed at the beginning
of the year as 115% of direct labor cost.
rev: 11_02_2011
references
1.
value:
2.00 points
Problem 20-1A Part 1

4. Required:
1(a)
Compute the cost of products transferred from production to
finished goods. (Omit the "$" sign in your response.)
Cost of products transferred
$
1(b)
Compute the cost of goods sold. (Omit the "$" sign in your
response.)
Cost of goods sold
$
rev: 10_31_2011
check my workeBook Links (4)references
2.
value:
5.00 points
Problem 20-1A Part 2
2(a)
Prepare journal entry dated May 31 to record the raw materials
purchases. (Omit the "$" sign in your response.)
Date
General Journal
Debit
Credit
May 31

5. 2(b)
Prepare journal entry dated May 31 to record the direct
materials usage. (Omit the "$" sign in your response.)
Date
General Journal
Debit
Credit
May 31
2(c)
Prepare journal entry dated May 31 to record the indirect
materials usage. (Omit the "$" sign in your response.)
Date
General Journal
Debit
Credit
May 31

6. 2(d)
Prepare journal entry dated May 31 to record the payroll
costs. (Omit the "$" sign in your response.)
Date
General Journal
Debit
Credit
May 31
2(e)
Prepare journal entry dated May 31 to record the direct labor
costs. (Omit the "$" sign in your response.)
Date
General Journal
Debit
Credit
May 31

7. 2(f)
Prepare journal entry dated May 31 to record the indirect labor
costs. (Omit the "$" sign in your response.)
Date
General Journal
Debit
Credit
May 31
2(g)
Prepare journal entry dated May 31 to record the other overhead
costs. (Omit the "$" sign in your response.)
Date
General Journal
Debit
Credit
May 31

8. 2(h)
Prepare journal entry dated May 31 to record the overhead
applied. (Omit the "$" sign in your response.)
Date
General Journal
Debit
Credit
May 31
2(i)
Prepare journal entry dated May 31 to record the goods
transferred from production to finished goods.(Omit the "$"
sign in your response.)
Date
General Journal
Debit
Credit
May 31

9. 2(j)
Prepare journal entry dated May 31 to record the sale of
finished goods. (Omit the "$" sign in your response.)
Date
General Journal
Debit
Credit
May 31

10. Fairfax Company uses weighted-average process costing to
account for its production costs. Direct labor is added evenly
throughout the process. Direct materials are added at the
beginning of the process. During September, the company
transferred 760,000 units of product to finished goods. At the
end of September, the goods in process inventory consists of
203,000 units that are 90% complete with respect to labor.
Beginning inventory had $438,165 of direct materials and
$188,540 of direct labor cost. The direct labor cost added in
September is $3,582,260, and the direct materials cost added is
$2,932,335.
references
3.
value:
2.00 points
Problem 20-2A Part 1
Required:
1(a)
Determine the equivalent units of production with respect to
direct labor.
Equivalent units
1(b)
Determine the equivalent units of production with respect to
direct materials.
Equivalent units

11. check my workeBook Links (2)references
4.
value:
2.00 points
Problem 20-2A Part 2
2.
Compute both the direct labor cost and the direct materials cost
per equivalent unit. (Round your answers to 2 decimal place.
Omit the "$" sign in your response.)
Per equivalent
unit
Direct labor cost
$
Direct materials cost
$
check my workeBook Links (2)references
5.
value:
2.00 points
Problem 20-2A Part 3
3(a)
Compute both direct labor cost and direct materials cost
assigned to units completed and transferred out. (Due to
rounding of cost per unit, the total costs accounted for in the
cost summary may not equal to sum of all the costs given in the
problem. Round your per unit costs to 2 decimal places and
final answers to the nearest dollar amount.)

12. Cost transferred
out
Direct materials
$
Direct labor
$
3(b)
Compute both direct labor cost and direct materials cost
assigned to ending goods in process inventory. (Due to rounding
of cost per unit, the total costs accounted for in the cost
summary may not equal to sum of all the costs given in the
problem. Round your per unit costs to 2 decimal places and
final answers to the nearest dollar amount.)
Costs of ending goods in process
Direct materials
$
Direct labor
$
Problem 20-3A Journalizing in process costing; equivalent units
and costs L.O. C2, P1, P2, P3
[The following information applies to the questions displayed
below.]
Li Company produces large quantities of a standardized
product. The following information is available for its
production activities for January.

13. Raw materials
Factory overhead incurred
Beginning inventory
$
16,000
Indirect materials used
$
80,500
Raw materials purchased (on credit)
280,000
Indirect labor used
40,000
Direct materials used
(171,500
)

14. Other overhead costs
159,920
Indirect materials used
(80,500
)
Total factory overhead incurred
$
280,420
Ending Inventory
$
44,000

15. Factory overhead applied
Factory payroll
(140% of direct labor cost)
Direct labor used
$
200,300
Total factory overhead applied
$
280,420

16. Indirect labor used
40,000
Total payroll cost (paid in cash)
$
240,300

17. Additional information about units and costs of production
activities follows.
Units
Costs
Beginning goods in process inventory
2,600
Beginning goods in process inventory

18. Started
26,000
Direct materials
$
3,000
Ending goods in process inventory
4,900
Direct labor
3,500
Factory overhead
4,000

19. $
10,500
Status of ending goods in process inventory
Direct materials added
171,500
Materials—Percent complete
90
%
Direct labor added
200,300
Labor and overhead—Percent complete
75
%
Overhead applied (140% of direct labor)
280,420

20. Total costs
$
662,720
Ending goods in process inventory
$
92,911
During January, 22,000 units of finished goods are sold for
$160 cash each. Cost information regarding finished goods
follows.

21. Beginning finished goods inventory
$
150,000
Cost transferred in
569,809
Cost of goods sold
(598,390
)
Ending finished goods inventory
$
121,419
references
6.
value:

22. 5.00 points
Problem 20-3A Part 1
Required:
1(a)
Prepare journal entry dated January 31 to record the purchase of
raw materials. (Omit the "$" sign in your response.)
Date
General Journal
Debit
Credit
Jan. 31
1(b)
Prepare journal entry dated January 31 to record the direct
materials usage. (Omit the "$" sign in your response.)
Date
General Journal
Debit
Credit
Jan. 31

23. 1(c)
Prepare journal entry dated January 31 to record the indirect
materials usage. (Omit the "$" sign in your response.)
Date
General Journal
Debit
Credit
Jan. 31
1(d)
Prepare journal entry dated January 31 to record the factory
payroll costs. (Omit the "$" sign in your response.)
Date
General Journal
Debit
Credit
Jan. 31

24. 1(e)
Prepare journal entry dated January 31 to record the direct labor
costs used in production. (Omit the "$" sign in your response.)
Date
General Journal
Debit
Credit
Jan. 31
1(f)
Prepare journal entry dated January 31 to record the indirect
labor costs. (Omit the "$" sign in your response.)
Date
General Journal
Debit
Credit
Jan. 31

25. 1(g)
Prepare journal entry dated January 31 to record the other
overhead costs—credit Other Accounts.(Omit the "$" sign in
your response.)
Date
General Journal
Debit
Credit
Jan. 31
1(h)
Prepare journal entry dated January 31 to record the overhead
applied. (Omit the "$" sign in your response.)
Date
General Journal
Debit
Credit
Jan. 31

26. 1(i)
Prepare journal entry dated January 31 to record the goods
transferred to finished goods. (Omit the "$" sign in your
response.)
Date
General Journal
Debit
Credit
Jan. 31
1(j)
Prepare journal entries dated January 31 to record the sale of
finished goods. (Omit the "$" sign in your response.)
Date
General Journal
Debit
Credit
Jan. 31

27. check my workeBook Links (4)references
7.
value:
5.00 points
Problem 20-3A Part 2
2.
Prepare a process cost summary report for this company,
showing costs charged to production, units cost information,
equivalent units of production, cost per EUP, and its cost
assignment and reconciliation. (Due to rounding of cost per
unit, the total costs accounted for in the cost summary may not
equal to sum of all the costs given in the problem. Round your
cost per EUP answers to 2 decimal places and consider the same
in the other calculations. Round other answers to the nearest
dollar amount. Omit the "$" sign in your response.)

28. LI COMPANY
Process Cost Summary
For Month Ended January 31
Costs Charged to Production
Costs of beginning goods in process
$
$
Costs incurred this period
$

29. Total costs to account for
$
Unit cost information
Units to account for
Units accounted for

30. Total units to account for
Total units accounted for
Equivalent units of production
Direct Materials
Direct Labor
Factory Overhead
EUP
EUP
EUP
EUP
EUP
EUP
Equivalent units of production
EUP
EUP
EUP

31. Cost per EUP
Direct Materials
Direct Labor
Factory Overhead
$
$
$

32. Total costs
$
$
$
EUP
EUP
EUP
Cost per EUP
$

33. Per EUP
$
Per EUP
$
Per EUP
Cost assignment and reconciliation
Costs transferred out
$

34. $
Costs of ending goods in process
$
Total costs to account for
$

35. roblem 20-5A Process cost summary, equivalent units, cost
estimates L.O. C2, C3, P4
[The following information applies to the questions displayed
below.]
Ogden Co. manufactures a single product in one department. All
direct materials are added at the beginning of the manufacturing
process. Direct labor and overhead are added evenly throughout
the process. The company uses monthly reporting periods for its
weighted-average process cost accounting. During October, the
company completed and transferred 24,600 units of product to
finished goods inventory. Its 4,200 units of beginning goods in
process consisted of $20,800 of direct materials, $203,300 of
direct labor, and $100,040 of factory overhead. It has 3,000
units (100% complete with respect to direct materials and 90%
complete with respect to direct labor and overhead) in process
at month-end. After entries to record direct materials, direct
labor, and overhead for October, the company’s Goods in
Process Inventory account follows.
Goods in Process Inventory
Acct. No.133
Date
Explanation
Debit
Credit
Balance

36. Oct. 1
Balance
324,140
31
Direct materials
504,900
829,040
31
Direct labor
1,224,300
2,053,340
31
Applied overhead
963,840
3,017,180
references
8.
value:
5.00 points
Problem 20-5A Part 1
1.
Prepare the company’s process cost summary for October using
the weighted-average method. (Due to rounding of cost per unit,
the total costs accounted for in the cost summary may not equal
to sum of all the costs given in the problem. Round your cost
per EUP answers to 2 decimal places and consider the same in

37. the other calculations. Round other answers to the nearest dollar
amount. Omit the "$" sign in your response.)
OGDEN CO.
Process Cost Summary
For Month Ended October 31
Costs Charged to Production
Costs of beginning goods in process
$
$
Costs incurred this period
$

38. Total costs to account for
$
Unit cost information
Units to account for
Units accounted for

39. Total units to account for
Total units accounted for
Equivalent units of production
Direct Materials
Direct Labor
Factory Overhead
EUP
EUP
EUP
EUP
EUP
EUP
Equivalent units of production
EUP
EUP
EUP

40. Cost per EUP
Direct Materials
Direct Labor
Factory Overhead
$
$
$
Total costs
$
$
$
EUP
EUP
EUP
Cost per EUP

41. $ per EUP
$ per EUP
$ per EUP
Cost assignment and reconciliation
Costs transferred out
$
$
Costs of ending goods in process
$

42. Total costs to account for
$
check my workeBook Links (3)references
9.
value:
2.00 points
Problem 20-5A Part 2
2.
Prepare the journal entry dated October 31 to transfer the cost
of completed units to finished goods inventory. (Omit the "$"
sign in your response.)

43. Date
General Journal
Debit
Credit
Oct. 31
check my workeBook Links (3)reference
(Click to select)
(Click to select)
(Click to select)
(Click to select)
(Click to select)
(Click to select)
(Click to select)
(Click to select)
(Click to select)
(Click to select)

44. (Click to select)
(Click to select)
(Click to select)
(Click to select)
(Click to select)
(Click to select)
(Click to select)
(Click to select)
(Click to select)
(Click to select)
(Click to select)
(Click to select)
(Click to select)
(Click to select)
(Click to select)
(Click to select)
(Click to select)

45. (Click to select)
(Click to select)
(Click to select)
(Click to select)
(Click to select)
(Click to select)
(Click to select)
(Click to select)
(Click to select)
(Click to select)
(Click to select)
(Click to select)
(Click to select)
(Click to select)
(Click to select)
(Click to select)
(Click to select)

46. (Click to select)
(Click to select)
(Click to select)
(Click to select)
(Click to select)
(Click to select)
(Click to select)
(Click to select)
(Click to select)
(Click to select)
(Click to select)