1.FreshOrganics

makes organic yogurt. The onlyingredients, milk and bacteriacultures, are added at the very beginning of the fermentation process. At monthend,

FreshOrganics

has

150,000

cups of yogurt that are only

31%

of the way through the fermentation process. Use the equivalent unit formula to answer thefollowing:

a.	How many equivalent units of direct materials are in ending work inprocess?
b.	How many equivalent units of conversion costs are in ending work inprocess?

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Part 1

a.How many equivalent units of direct materials are in ending work inprocess?

The number of equivalent units of direct materials in ending work in process is

.

Part 2

b.How many equivalent units of conversion costs are in ending work inprocess?

The number of equivalent units of conversion costs in ending work in process is

.

2. Dairyfresh's

yogurt goes through two sequential processes in twodepartments: Fermenting and Packaging. Assume that in the PackagingDepartment, Step 4 of the process costing procedure indicated the following costs per equivalent unit(cases ofyogurt):

LOADING...

(Click

the icon to view the costs per equivalentunit.)

a.	How much did each case of yogurt cost tomake, from start tofinish?
b.	If each case sells for $23, what is the gross profit percase?

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Part 1

a. How much did each case of yogurt cost tomake, from start tofinish?(Enter your answer to the nearestcent, $X.XX.)

Dairyfresh's cost of making each case of yogurt from start to finish is

per case.

Part 2

b. If each case sells for

$23,

what is the gross profit percase?

Enter theformula, then compute the gross profit per case.(Enter your answer to the nearestcent, $X.XX.)

	-		=	Gross profit per case
	-		=

3.

Springs produces premium bottled water.

Canadian

Springs purchases artesianwater, stores the water in largetanks, and then runs the water through twoprocesses:

Filtration, where workers microfilter and ozonate the water

Bottling, where workers bottle and package the filtered water

During

February,

the filtration process incurs the following costs in processing

200,000

litres:

LOADING...

(Click the icon to view thecosts.)

Canadian

Springs has no beginning inventory in the Filtration Department.

...

Question content area top right

Part 1

Requirements

1.	Compute the February conversion costs in the Filtration Department.
2.	If the Filtration Department completely processed 200,000 litres, what would be the averagefiltration cost perlitre?
3.	Now, assume that the total costs of the filtration process listed in the information provided yield 160,000 litres that are completely filtered andozonated, while the remaining 40,000 litres are only partway through the process at the end of February. Is the cost per completely filtered and ozonated litrehigher, lower, or the same as in Requirement2? Why?

Question content area bottom

Part 1

Requirement 1. Compute the

February

conversion costs in the Filtration Department.

Determine theformula, then compute the

February

conversion costs in the Filtration Department.

		+		=	Conversion costs
		+		=

Part 2

Requirement 2. If the Filtration Department completely processed

200,000

litres, what would be the averagefiltration cost perlitre?

Determine theformula, then compute the averagefiltration cost per litre if the Filtration Department completely processed

200,000

litres.(Round your final answer to the nearestcent.)

	/		=	Average filtration cost per litre
	/		=

Part 3

Requirement 3.Now, assume that the total costs of the filtration process listed in the information provided yield

160,000

litres that are completely filtered andozonated, while the remaining

40,000

litres are only partway through the process at the end of

February.

Is the cost per completely filtered and ozonated litrehigher, lower, or the same as in Requirement2? Why?

If only

160,000

litres were completely filtered andozonated, the remaining

40,000

wereincomplete, the cost of a completely filtered and ozonated litre would be

higher than

lower than

the same as

the average filtration cost per litre calculated in Requirement 2. This is because

a decrease in the denominator of the formula will result in a greater cost per litre

a decrease in the numerator of the formula will result in a greater cost per litre

an increase in the denominator of the formula will result in a greater cost per litre

an increase in the numerator of the formula will result in a lower cost per litre

the average filtration cost per litre is fixed

.

4. The following information was taken from the ledger of

DenverFoundry:

LOADING...

(Click

the icon to view the data from

October.)

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(Click

the icon for additionalinformation.)

Requirement

Journalize the transfer of costs to the Finishing Department.

(Hint:

Complete thefive-step process costing procedure to determine how much cost totransfer.)

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Part 1

We need to begin thefive-step process costing procedure by first summarizing the units to account for and computing the equivalent units.

Forming Department
Equivalent Unit Computation
Month Ended October 31
	Flow of	Equivalent Units
	Physical	Direct	Conversion
Flow of Production	Units	Materials	Costs
Units to account for:
Units accounted for:
Total equivalent units

Part 2

The next step is calculating the cost per equivalent unit.(Enter the cost per equivalent unit to two decimalplaces.)

Forming Department
Cost per Equivalent Unit
Month Ended October 31
	Direct	Conversion
	Materials	Costs	Total
Cost per equivalent unit

Part 3

Now we can calculate the total cost of the units completed and transferred out and the ending work in process.(Enter quantitiesfirst, then the cost per equivalent unit amounts in the same order as calculated in the precedingstep.)

Assembly Department
Month Ended October 31
Assigning Costs
		Direct	Conversion
		Materials	Costs	Total
	Completed and transferred out:
	Ending work in process:
	Total costs accounted for

Part 4

Finally, journalize the transfer of costs to the Finishing Department.(Record debitsfirst, then credits. Exclude explanations from any journal entries. Check your spelling carefully and do not abbreviate. When entering Inventoryaccounts, specify the correct department where applicable(i.e. Work in Process Inventory(Blending)). Do not use hyphens or dashes in any account

name.)

Journal Entry
Date	Accounts	Debit	Credit