1) The Spangle Company uses the process cost system and average costing. The following prediction data are for the month of July: Production Costs Work in process, beginning of month Materials $2,500 Labor 1,200 Factory Overhead 1,100 $4800 Costs incurred during the month Materials $13,500 Labor 9,200 Factory overhead 8,500 31,200 $36,000 Production Report Units In process, beginning of m onth 500 Finished and transferred during the month 3,800 Work in process, end of month 400 Stage of completion 50% prepare a cost of production summary for the month?

2) The Following data is for a production company: Beginning inventory 1,000 units, three-fourths completed Finished and transferred 16,000 units Work in process, end of month 2,000 units, one half completed Assume that materials, labor, and factory overhead are added evenly throughout the process. On a separate sheet of paper, complete the following problems. Label each answer carefully and show all your work. a. Using the average cost method, compute the equivalent production. b. Using the first-in, first-out method, compute the equivalent production. c. During the month, Department B received 10,000 units from department a with a unit cost of $10; 2,00 of these unit were lost during production in Department B. Determine the adjusted cost of these units. d. During the month, Department 2 received 8,000 from department 1 with a unit cost of $15. Department 2 added materials that increased the number of units by 50%. Determine the adjusted cost of these units.

3) A Plant uses process costing has 8,000 units in beginning work in process, 15,000 more started, and 5,000 units in the ending work in process. Using this information, answer the following questions on a separate sheet of paper. Label each answer carefully and show all of your work. a. How many units are there to account for? b. How many units are transferred using the average cost method? c. How many units are transferred using the first-in, first-out method? d. How many units were both started and completed during the period?

4) Cost of production summary, three departments; change in unit cost from prior department; department cost work sheet; journal entries; manufacturing statement
Taguchi Manufacturing Co. uses the process cost system. The following information for the month of December was obtained from the company's book and from the production reports submitted by the department heads:
Production Report &nbs p; Mixing Blending Bottling
Units in process, beginning of period &nbs p; 2,500 1,500 3,000
Started in process during the month 12,500
Received from prior department &nb sp; 13,000 10,000
Finished and transferred &nb sp; 13,000 10,000 11,000
Finished and on hand 500
Units in process, end of period 2,000 4,000 2,000
Stage of completion &n bsp; ¼ 4/5 ½
Production Costs
Work in process, beginning of period:
Cost in Mixing .......................................... &n bsp; $3,075 $6150
Materials ............................................... $1470
Labor ....................................................... 650
Factory overhead ................................. 565
Cost in Blending .......................................... 3,660
Materials .......................................... &n bsp; 240
Labor .......................................... &nb sp; 905
Factory overhead ..................... & nbsp; 750
Cost in Bottling
Materials ................................. &nbs p; 900
Labor .......................................... &n bsp; 3,100
Factory overhead..................... &n bsp; 3,080
Cost incurred during the month:
Materials .......................................... 15,000 2,500 1,500
Labor .......................................... 4,750 &nb sp; 8,000 6,500
Factory overhead ..................... 5,240 & nbsp; 6,100 7,000
TOTAL ................................................. $27,675 $21,570 $31,890
Required:
1. Prepare Costs of production summaries for the mixing, blending, and Bottling departments.
2. Prepare a departmental cost work sheet.
3. Draft the journal entries required to record the month's operations.
4. Prepare a statement of cost of goods manufactured for December.

5) Average and FIFO cost methods; losses at the beginning and end of processing Similar to Self-Study problem 1
Mt. Orab Manufacturing Company uses a process cost system. Its manufacturing operation is carried on in two departments: Machining and finishing. The Machining Department uses the average cost method and the finishing department uses the FIFO cost method. Materials are added in both departments at the beginning of operations, but the added materials do not increase the number of units being processed. Units are lost in the Machining Department throughout the production process, and inspection occurs at the end of the process. The lost units have no scrap value and are considered to be a normal loss. Production statistics for July Show the following data:
& nbsp; Machining Finishing
Units In process,July 1 (all Material,
40% of labor and overhead).................................. 20,000
Units in Process, July 1 (all material,
80% of labor and overhead)................................... 40,000
Units started in production ................................... 140,000
Units Completed and transferred ............................. 100,000
Units transferred from machining........................... 100,000
Units completed and transferred to
Finished goods ....................................................... & nbsp; 100,000
Units in process, July 31(all material,
60% of labor and overhead) .................................. 40,000
Units in process, July 31 (all material,
40% of labor and overhead).................................... ; 40,000
Units lost in production ............................................... 20,000

Production Cost Machining Finishing

Work in process, July 1:

Materials ................................................................ &nb sp; $40,000 $110,000
Labor ....................................... ................................ 24,000 60,000
Factory Overhead.................................................. 8,000 40,000
Costs in Machining Department......................... &n bsp; 240,000
Costs incurred during month:
Materials ................................................................ $280,000 240,000
Labor ....................................................................... &n bsp; 180,000 160,000
Factory Overhead.................................................. 60,000 80,000

Required:
Prepare a cost of production summary for each department. (Round to three decimal places.)

6) MINI-CASE
Allocation of Joint costs
Lark Manufacturing Company buys crypton for $0.80 a gallon. At the end of processing in Department 1, Crypton splits off into products A.B and C. Product A is sold at the split-off point with no further processing. Products B and C require Further processing before they can be sold. Product B is processed in Department 2, and Product C is processed in Department 3. Following is a summary of costs and other related data for the year ended December 31:
&n bsp; & nbsp; Dept. 1 Dept. 2 Dept. 3
Cost of crypton ........................................... $ 76,000
Direct Labor................................................. 14,000 $51,000 $ 65,000
Factory Overhead....................................... 10,000 &nbs p; 26,500 49,000
Total.............................................................. $100,000 $77,500 $114,000

& nbsp; Product A Product B Product C
Gallons sold ...................................... 2 0,000 30,000 45,000
Gallons on hand at December 31 ....... 10,000 15,000
Sales in Dollars ................................... $30,000 $96,000 $141,750
No inventories were on hand at the beginning of the year, and no crypton was on hand at the end of the year. All gallons on hand at the end of the year were complete as to processing. Clark uses the relative sales value method of allocating joint costs.
Required:

1. Calculate the allocation of joint costs.

2. Calculate the total cost per unit for each product.

3. In examinaning, the product cost reports, Lois Lane, Vice-President-Marketing, notes that the per unit cost of Product B is greater than the selling price of $3.20 that can be received in the competitive marketplace. Lane wonders if they should stop selling Product B. How did Lane determine that the product was being sold at a loss? What per unit cost should be used in determining if product B should Be sold?