ACCT 346 Week 3 Homework (GRADED A) | 100% Guaranteed Pass

ACCT 346 Week 3 Homework 1. For each of the following companies, specify whether the company would be more likely to use job costing or process costing. a. Medical practice of six doctors & four physician assistants Job costing b. Soft drink bottler Process costing c. Movie studio Job costing d. Plastic bottle manufacturer Process costing e. Architect Job costing f. Temporary staffing agency Job costing g. Oil refinery Process costing h. Janitorial services company Job costing i. Soup manufacturer Process costing j. Commercial plumbing contractor Job costing k. Toothpaste manufacturer Process costing l. Catering service Job costing m. Ship builder Job costing n. Company providing Web design services Job costing 2. Patty's Pumpkin Pies collected the following production information relating to November's baking operations: 1(Click the icon to view the information.) Requirements Complete the first two steps in the process costing procedure: 1. Summarize the flow of physical units. 2. Compute output in terms of equivalent units. Click the icon to see the Worked Solution. Patty's Pumpkin Pies Equivalent Unit Computation Flow of Equivalent Units Physical Direct Conversion Flow of Production Units Materials Costs Units to account for: Beginning work in process, November 1 207,000 Units accounted for: Completed & transferred out 1,070,000 1,070,000 1,070,000 Plus: Ending work in process, November 30 157,000 117,750 133,450 Total physical units accounted for 1,227,000 Total equivalent units Review Only 1: Data Table Physical Direct Materials Conversion Costs 3. Paint by Number prepares & packages paint products. The company has two departments: (1) Blending & (2) Packaging. Direct materials are added at the beginning of the blending process (dyes) & at the end of the packaging process (cans). Conversion costs are added evenly throughout each process. Data from the month of May for the Blending Department are as follows: 2(Click the icon to view the data from May.) Read the requirements3. Click the icon to see the Worked Solution. Requirement 1. Fill-in the time line for the Blending Department. Review Only Start Complete Complete Requirement 2. Summarize the physical flow of units & compute total equivalent units for direct materials & for conversion costs. (For entries with a 0 balance, make sure to enter "0" in the appropriate column.) Blending Department Equivalent Unit Computation Month Ended May 31 Flow of Equivalent Units Physical Direct Conversion Flow of Production Units Materials Costs Units to account for: Beginning work in process, May 1 0 Units accounted for: Completed & transferred out 6,300 6,300 6,300 Total equivalent units Requirement 3. Summarize total costs to account for & find the cost per equivalent unit for direct materials & for conversion costs. (For entries with a $0 balance, make sure to enter "0" in the appropriate cell(s). Enter the cost per equivalent unit to two decimal places.) Blending Department Cost per Equivalent Unit Month Ended May 31 Direct Conversion Materials Costs Total Beginning work in process $ 0 $ 0 $ 0 Plus: Costs added during May 5,246 2,796 8,042 Total costs to account for $ 5,246 $ 2,796 $ 8,042 Divided by: Total equivalent units 8,600 6,990 Cost per equivalent unit Requirement 4. Assign total costs to units (gallons): (a) Completed & transferred out to the Packaging Department & (b) In the Blending Department ending work in process inventory. (Enter quantities first, then the cost per equivalent unit amounts in the same order as calculated in the preceding step.) Blending Department Month Ended May 31 Assigning Costs Direct Conversion Materials Costs Total a. Completed & transferred out: Equivalent units completed & transferred out 6,300 6,300 Multiplied by: Cost per equivalent unit $ 0.61 $ 0.40 Costs assigned to units completed & transferred out $ 3,843 $ 2,520 $ 6,363 b. Ending work in process: Equivalent units in ending work in process, May 31 2,300 690 Multiplied by: Cost per equivalent unit $ 0.61 $ 0.40 Costs assigned to units in ending work in process, May 31 $ 1,403 $ 276 1,679 Total costs accounted for Requirement 5. What is the average cost per gallon transferred out of the Blending Department to the Packaging Department? Why would the company's managers want to know this cost? First, identify the labels to compute the average cost per gallon transferred out, then compute the average cost per gallon transferred out of the Blending Department to the Packaging Department. (Round your answer to two decimal places.) Average cost / = per gallon / = Why would Paint by Number's managers want to know this cost? Managers will want to know this cost to compare it to their budgeted target costs . They may also use the cost information when setting selling prices . 2: Data Table Gallons: Beginning work in process inventory . . . . . . . . . . . . . . . . . . . . . . 0 Started production. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8,600 gallons Completed & transferred out to Packaging in May . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6,300 gallons Ending work in process inventory (30% of the way through the blending process) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,300 gallons Costs: Beginning work in process inventory . . . . . . . . . . . . . . . . . . . . . . $ 0 Costs added during May: Direct materials (dyes). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5,246 Direct labo.r . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 700 Manufacturing overhead. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,096 Total costs added during May. . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 8,042 3: Requirements 1. Fill-in the time line for the Blending Department. 2. Summarize the physical flow of units & compute total equivalent units for direct materials & for conversion costs. 3. Summarize total costs to account for & find the cost per equivalent unit for direct materials & conversion costs. 4. Assign total costs to units (gallons): a. Completed & transferred out to the Packaging Department b. In the Blending Department ending work in process inventory 5. What is the average cost per gallon transferred out of the Blending Department to the Packaging Department? Why would the company's managers want to know this cost? 4. The Assembly Department of ATG Surge Protectors began September with no work in process inventory. During the month, production that cost $37,243 (direct materials, $10,123, & conversion costs, $27,120) was started on 24,000 units. ATG completed & transferred to the Testing Department a total of 17,000 units. The ending work in process inventory was 30% complete as to direct materials & 80% complete as to conversion work. Requirements 1. Compute the equivalent units for direct materials & conversion costs. 2. Compute the cost per equivalent unit. 3. Assign the costs to units completed & transferred out & ending work in process inventory. 4. Record the journal entry for the costs transferred out of the Assembly Department to the Testing Department. 5. Post all of the transactions in the "Work in Process Inventory—Assembly" T-account. What is the ending balance? Review Only Click the icon to see the Worked Solution. Requirement 1. Compute the equivalent units for direct materials & conversion costs. Assembly Department Equivalent Unit Computation Month Ended September 30 Flow of Equivalent Units Physical Direct Conversion Flow of Production Units Materials Costs Units accounted for: Completed & transferred out 17,000 17,000 17,000 Plus: Ending work in process, September 30 7,000 2,100 5,600 Total equivalent units Requirement 2. Compute the cost per equivalent unit. (For entries with a $0 balance, make sure to enter "0" in the appropriate column. Enter the cost per equivalent unit to two decimal places.) Assembly Department Cost per Equivalent Unit Month Ended September 30 Direct Conversion Materials Costs Beginning work in process $ 0 $ 0 Plus: Costs added during September 10,123 27,120 Total costs to account for 10,123 27,120 Divided by: Total equivalent units 19,100 22,600 Cost per equivalent unit Requirement 3. Assign the costs to units completed & transferred out & ending work in process inventory. (Enter quantities first, then the cost per equivalent unit amounts in the same order as calculated in the preceding step.) Assembly Department Month Ended September 30 Assigning Costs Direct Conversion Materials Costs Total This study source was downloaded by from CourseH on :58:42 GMT -05:00 Completed & transferred out: Equivalent units completed & transferred out 17,000 17,000 Multiplied by: Cost per equivalent unit $ 0.53 $ 1.20 Costs assigned to units completed & transferred out $ 9,010 $ 20,400 $ 29,410 Ending work in process: Equivalent units in ending work in process, September 30 2,100 5,600 Multiplied by: Cost per equivalent unit $ 0.53 $ 1.20 Costs assigned to units in ending work in process, September 30 $ 1,113 $ 6,720 7,833 Total costs accounted for Requirement 4. Record the journal entry for the costs transferred out of the Assembly Department to the Testing Department. (Record debits first, then credits. Exclude explanations from any journal entries.) Journal Entry Date Accounts Debit Credit Requirement 5. Post all of the transactions in the "Work in Process Inventory—Assembly" T-account. What is the ending balance? (For entries with a $0 balance, make sure to enter "0" in the appropriate column.) Work in Process Inventory—Assembly Bal September 30 7,833 This study source was downloaded by from CourseH on :58:42 GMT -05:00 Show Less