GroFast Company manufactures a high-quality fertilizer, which is used primarily by commercial veg-etable growers. Two departments are involved in the production process. In the Mixing Department, various chemicals are entered into production. After processing, the Mixing Department transfers a chemical called Chemgro to the Finishing Department. There the product is completed, packaged, and shipped under the brand name Vegegro. Problem 435Process Costing; Production Report; Journal Entries; Weighted-Average Method(LO 4-2, 4-3, 4-4, 4-5, 4-6)Cost of goods completed and transferred out, November: $306,300Mixing Dept.Various chemicalsChemgroVegegroFinishing Dept.In the Mixing Department, the raw material is added at the beginning of the process. Labor and overhead are applied continuously throughout the process. All direct departmental overhead is traced to the departments, and plant overhead is allocated to the departments on the basis of direct-labor. The plant overhead rate for 20x2 is $.40 per direct-labor dollar.The following information relates to production during November 20x2 in the Mixing Department. a. Work in process, November 1 (4,000 pounds, 75 percent complete as to conversion):Inventory, November 1, 2,000 pounds ................................................................................................................$10,000Purchases, November 3, 10,000 pounds ............................................................................................................51,000Purchases, November 18, 10,000 pounds ..........................................................................................................51,500Released to production during November, 16,000 pounds Raw material .............................................................................................................................................................$22,800Direct labor at $5.00 per hour .................................................................................................................................24,650Departmental overhead ...........................................................................................................................................12,000Allocated plant overhead .........................................................................................................................................9,860 b. Raw material: c. Direct-labor cost, $103,350 d. Direct departmental overhead costs, $52,000 e. Transferred to Finishing Department, 15,000 pounds f. Work in process, November 30, 5,000 pounds, 20 percent completeThe company uses weighted-average process costing to accumulate product costs. However, for raw-material inventories, the firm uses the FIFO (i.e., first in, first out) inventory method.Required: 1. Prepare a production report for the Mixing Department for November 20x2. The report should show: a. Equivalent units of production by cost factor (i.e., direct material and conversion). b. Cost per equivalent unit for each cost factor. (Round your answers to the nearest cent.) c. Cost of Chemgro transferred to the Finishing Department. d. Cost of the work-in-process inventory on November 30, 20x2, in the Mixing Department. 2. Prepare journal entries to record the following events: a. Release of direct material to production during November. b. Incurrence of direct-labor costs in November. c. Application of overhead costs for the Mixing Department (direct departmental and allocated plant overhead costs.) d. Transfer of Chemgro out of the Mixing Department.(CMA, adapted) Chapter 4 Process Costing and Hybrid Product-Costing Systems 165hiL6956X_ch04_136-167 165 06/17/16 06:38 PMPlasto Corporation manufactures a variety of plastic products including a series of molded chairs. The three models of molded chairs, which are all variations of the same design, are Standard (can be stacked), Deluxe (with arms), and Executive (with arms and padding). The company uses batch manufacturing and has an operation-costing system. The production process includes an extrusion operation and subsequent operations to form, trim, and finish the chairs. Plastic sheets are produced by the extrusion operation, some of which are sold directly to other manufacturers. During the forming operation, the remaining plastic sheets are molded into chair seats and the legs are added; the Standard model is sold after this operation. During the trim operation, the arms are added to the Deluxe and Executive models and the chair edges are smoothed. Only the Executive model enters the finish operation where the padding is added. All of the units produced receive the same steps within each operation. The May production run had a total manu-facturing cost of $898,000. The units of production and direct-material costs incurred were as follows: Problem 436Operation Costing; Unit Costs; Journal Entries(LO 4-7)1. Total product cost, deluxe model: $207,900Units ProducedExtrusion MaterialsForm MaterialsTrim MaterialsFinish MaterialsPlastic sheets ..............................................................5,000$60,000Standard model ..........................................................6,00072,000$24,000Deluxe model .............................................................3,00036,00012,000$9,000Executive model ......................................................... 2,000 24,000 8,000 6,000$12,000 Total ............................................................................16,000$192,000$44,000$15,000$12,000 ProductsUnitsDept. I Dir. Mat.Dept. II Dir. Mat.Clear glass, sold after dept. I ........................................................11,000$247,5000Unetched colored glass, sold after dept. II ..................................4,000 90,000$32,000Etched colored glass, sold after dept. III ......................................5,000 112,500 40,000Extrusion OperationForm OperationTrim OperationFinish OperationDirect labor .........................................................................................$152,000$60,000$30,000$18,000Manufacturing overhead .................................................................... 240,000 72,000 39,000 24,000Cost CategoryDept. IDept. IIDept. IIIDirect material ...............................................................................$450,000$72,0000Direct labor .................................................................................... 38,000 22,000$38,000Manufacturing overhead ............................................................... 230,000 68,000 73,750Manufacturing costs applied during the month of May were as follows:Required: 1. For each product produced by Plasto Corporation during the month of May, determine the (a) unit cost and (b) total cost. Be sure to account for all costs incurred during the month. 2. Prepare journal entries to record the flow of production costs during May.(CMA, adapted)(Contributed by Roland Minch.) Glass Glow Company manufactures a variety of glass windows in its Egalton plant. In department I, clear glass sheets are produced, and some of these sheets are sold as finished goods. Other sheets made in department I have metallic oxides added in department II to form colored glass sheets. Some of these colored sheets are sold; others are moved to department III for etch-ing and then are sold. The company uses operation costing.Glass Glow Companys production costs applied to products in May are given in the following table. There was no beginning or ending inventory of work in process for May. Problem 437Operation Costing; Unit Costs(LO 4-7)2. Conversion cost per unit, department II: $10.00 5. Cost of etched, colored glass sheet: $76.25 per sheetEach sheet of glass requires the same steps within each operation.Required: Compute each of the following amounts. 1. The conversion cost per unit in department I. 2. The conversion cost per unit in department II. 3. The cost of a clear glass sheet.Final PDF to printer