Question :
41) Identify the appropriate order of the following steps in : 1211900
41) Identify the appropriate order of the following steps in the procedure for process costing with spoilage.
a.summarize total costs to account for
b.assign total costs to units completed, to spoiled units, and to units in ending inventory
c.summarize the flow of physical units
d.compute output in terms of equivalent units
e.compute cost per equivalent unit
Step 1 ________
Step 2 ________
Step 3 ________
Step 4 ________
Step 5 ________
42) Maxire Shoes manufactures shoes. All direct materials are included at the inception of the production process. For March, there were 2,800 units in beginning inventory with a direct material cost of $1,400. Direct materials totaled $35,000 for the month. Work-in-process records revealed that 70,000 units were started in March and that 60,000 were finished. Normal spoilage of 2% of units finished was incurred. Ending work-in-process units are complete in respect to direct materials costs. Spoilage is not detected until the process is complete. Endicott uses the weighted-average method.
Required:
a.What are the direct materials costs assigned to completed good units?
b.What are the direct material amounts allocated to the work-in-process ending inventory?
43) Venosis Sports is a manufacturer of sportswear. It produces all of its products in one department. The information for the current month is as follows:
Beginning work in process22,000 units
Units started44,000 units
Units completed55,000 units
Ending work in process10,000 units
Spoilage1,000 units
Beginning work-in-process direct materials$15,000
Beginning work-in-process conversion$ 6,000
Direct materials added during month$70,800
Direct manufacturing labor during month$37,400
Beginning work in process was half complete as to conversion. Direct materials are added at the beginning of the process. Factory overhead is applied at a rate equal to 50% of direct manufacturing labor. Ending work in process was 60% complete. All spoilage is normal and is detected at end of the process.
Required:
Prepare a production cost worksheet if spoilage is recognized and the weighted-average method is used.
44) Silver Spoon Incorporated is a manufacturer of kitchen utensils. It produces all of its products in one department. The information for the current month is as follows:
Beginning work in process40,000 units
Units started52,000 units
Units completed73,000 units
Ending work in process16,000 units
Spoilage3,000 units
Beginning work-in-process direct materials$30,000
Beginning work-in-process conversion$ 8,000
Direct materials added during month$126,400
Direct manufacturing labor during month$60,480
Beginning work in process was 25% complete as to conversion. Direct materials are added at the beginning of the process. Factory overhead is applied at a rate equal to 40% of direct manufacturing labor. Ending work in process was 60% complete. All spoilage is normal and is detected at the end of the process.
Required:
Prepare a production cost worksheet if spoilage is recognized and the weighted-average method is used.
45) New Image Sports uses a process-costing system. For March, the company had the following activities:
Beginning work-in-process inventory (1/3 complete)7,200 units
Units placed in production28,800 units
Good units completed21,600 units
Ending work-in-process inventory12,000 units
Cost of beginning work in process$ 6,000
Direct material costs, current$21,600
Conversion costs, current$14,400
Direct materials are placed into production at the beginning of the process. All spoilage is normal and is detected at the end of the process. Ending WIP is 60% completed as to conversion.
Required:
Prepare a production cost worksheet using the FIFO method.
