Connect Managerial Accounting Chapter 16 Assignment

Q1. For each of the following products and services, indicate whether it is more likely produced in a process operation or in a job order operation.

Q2. Hotwax makes surfboard wax in two sequential processes. This period, Hotwax purchased $70,000 in raw materials. Its mixing department requisitioned $63,000 of those materials for use in production. Prepare journal entries to record its purchase of raw materials and requisition of direct materials.

Q3. Prepare journal entries to record the following production activities for Hotwax.

1. Incurred $90,000 of direct labor in its Mixing department and $80,000 of direct labor in its Shaping department (credit Factory Wages Payable).
2. Incurred indirect labor of $12,000 (credit Factory Wages Payable).
3. Total factory payroll of $182,000 was paid in cash.

Q4. Prepare journal entries to record the following production activities for Hotwax.

1. Requisitioned $12,300 of indirect materials for use in production of surfboard wax.
2. Incurred $186,000 overhead costs (credit Other accounts).
3. Applied overhead at the rate of 160% of direct labor costs. Direct labor costs were $130,000 in the Mixing department and $65,000 in the Shaping department.

Q5. Hotwax completed products costing $345,000 and transferred them to finished goods. Prepare its journal entry to record the transfer of units from Shaping to finished goods inventory.

Q6. The following partially completed process cost summary describes the July production activities of the Molding department at Ashad Company. Its production output is sent to the next department. All direct materials are added to products when processing begins. Beginning work in process inventory is 20% complete with respect to conversion.

Equivalent Units of Production	Direct Materials	Conversion
Units transferred out	39,500 EUP	39,500 EUP
Units of ending work in process	4,000 EUP	2,400 EUP
Equivalent units of production	43,500 EUP	41,900 EUP

 

Costs per EUP	Direct Materials	Conversion
Costs of beginning work in process	$37,650	$4,620
Costs incurred this period	480,000	271,920
Total costs	$517,650	$276,540

 

Units in beginning work in process (all completed during July)	3,500
Units started this period	40,000
Units completed and transferred out	39,500
Units in ending work in process	4,000

Prepare its process cost summary using the weighted-average method.

Q7. Tamar Co. manufactures a single product in two departments. All direct materials are added at the beginning of the Forming process. Conversion costs are added evenly throughout the process. During May, the Forming department started 21,600 units, and transferred 22,200 units of product to the Assembly department. Its 3,000 units of beginning work in process consisted of $19,800 of direct materials and $221,940 of conversion costs. It has 2,400 units (100% complete with respect to direct materials and 80% complete with respect to conversion) in process at month-end. During the month, $496,800 of direct materials costs and $2,165,940 of conversion costs were charged to the Forming department. Prepare the journal entry dated May 31 to transfer the cost of units to Assembly.

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