P5-1 P5-6
P5-9
Week 5 Problems
P5-1 Eugene Products Co.
produces a latex paint and uses the process cost system. Materials, labor, and
overhead are added evenly throughout the process. The following information was
obtained from the company's accounts at the end of February.
Production
Costs
Costs Incurred during
month:
Materials
30,000
Labor 20,000
Factory
overhead 40,000 90,000
Production
Report Units
Finished and transferred to
stockroom during
month 56,000
Work in process, end of period,
one-fourth completed
16,000
Required:
Prepare a cost of production
summary for February. (round unit costs to the three decimal places.)
P5-6 Harmon Corporation
uses a process cost system. The records for the month of May show the
following information:
Production
Report Cutting
Grinding
Units in process, May
1 5,000 10,000
Started during the
month 20,000
-
Received from prior
department -
15,000
Finished and
transferred 15,000
10,000
Finished and on hand 5,000 -
Units in process, May
31 5,000
15,000
Stage of
completion 1/5
1/3
Production
Costs
Work in process, May
1:
Costs in
Cutting
50,000
Materials
5,000
Labor 6,450
Factory
overhead 3,550
Costs in
Grinding
Materials
5,000
Labor
5,500
Factory
overhead
3,500
Costs incurred during the
month
Materials 37,000
40,000
Labor
45,000
44,000
Factory
overhead
50,000 37,000
Total 147,000
185,000
Required:
Prepare a cost of production
summary for each department.
P5-9 Taguchi manufacturing Co.
uses the process cost system. The following information for the month of
December was obtained from the company’s books and from the production reports
submitted by the department heads:
|
Production Report
|
Mixing
|
Blending
|
Bottling
|
|
Units in Process, beginning of
period
|
2500
|
1500
|
3000
|
|
Started in process during month
|
12500
|
-
|
-
|
|
Received from prior department
|
-
|
13000
|
10000
|
|
Finished and transferred
|
13000
|
10000
|
11000
|
|
Finished and on hand
|
-
|
500
|
-
|
|
Units in Process, end of period
|
2000
|
4000
|
2000
|
|
Stage of completion
|
1/4
|
4/5
|
½
|
Production Costs
Works in process, beginning of
period
|
Cost in Mixing
|
|
3075
|
6150
|
|
Materials
|
1470
|
|
|
|
Labor
|
650
|
|
|
|
Factory Overhead
|
565
|
|
|
|
Cost in Blending
|
|
|
3660
|
|
Materials
|
|
240
|
|
|
Labor
|
|
905
|
|
|
Factory Oberhead
|
|
750
|
|
|
Cost in Bottling
|
|
|
|
|
Materials
|
|
|
900
|
|
Labor
|
|
|
3100
|
|
Factory Overhead
|
|
|
3080
|
|
Costs incurred during the month
|
|
|
|
|
Materials
|
15000
|
2500
|
1500
|
|
Labor
|
4750
|
8000
|
6500
|
|
Factory Overhead
|
5240
|
6100
|
7000
|
|
Total
|
27675
|
21570
|
31890
|
Required:
Prepare cost of production
summaries for the Mixing, Blending, and Bottling departments
Prepare a departmental cost work
sheet
Draft the journal entries
required to record the month’s operations
Prepare a stamen of cost of goods
manufactures for December
TUTORIAL PREVIEW
Problem 5-9
1.
|
Ichiro Manufacturing Co.
|
|||
|
Cost of Production
Summary - Mixing
|
|||
|
For the Month Ended
December 31, 20xx
|
|||
|
Cost of work in process,
beginning of month
|
|
|
|
|
Materials
|
|
$ 1,470
|
|
|
Labor
|
|
650
|
|
|
Factory overhead
|
|
565
|
$ 2,685
|
