LABEL EACH PART OF THE PROBLEM SHOW WORK DO ALL PARTS FOR THUMBS UP

WORD PROBLEM

PART A

PARt b

Part C

Part D

Homework 05 (Ch 6 & 7) Appendix: Normal and Abnormal Spoilage In Process Casting, Changes in Output Measures, Multiple Departments Grayson Company produces an Industrial chemical used for cleaning and lubricating machinery. In the Mixing Department, liquid and dry chemicals are blended to form slurry. Output is measured in gallons. In the Baking Department, the slurry is subjected to high heat, and the residue appears in irregular lumps. Output is measured in pounds. In the Grinding Department, the irregular lumps are ground into a powder, and this powder is placed in 50-pound bags. Output is measured in bags produced, In April, the company reported the following data: a. The Moding Department transferred 51,500 gallons to the Baking Department, costing $206,000. Each pallon of slurry weighs two pounds b. The Baking Department transferred 103,000 pounds (irregular lumps) to the Grinding Department. At the beginning of the month, there were 5,900 gallons of slurry in process, 30 percent complete, costing $34,000 (transferred in cost of $23,600 plus conversion cost of $10,400). No additional direct materials are added in the Baking Department. At the end of April, there was no ending work in process Conversion costs for the month totaled $210,720. Normal loss during baking is 5 percent of good output. All transferred-in materials are lost, but since loss occurs uniformly throughout the process, only 50 percent of the conversion units are assumed to be lost. > c. The Grinding Department transferred 2,575 bags of chemicals to its finished goods warehouse. Beginning work in process for this department was 25,000 pounds, 35 percent complete with the following costs: transferred-in cost, $130,500; conversion cost, $14,500. Bags are used at the end of the process and cost $1.20 each. During bagging, normally one out of every 11 bags is torn and must be discarded. No powder is lost (the tearing occurs when the bag is being attached to a funnel). Conversion costs for the month's production are $181,260. There is no ending work in process Equivalent Units Conversion Transferred Costs In Total equivalent units Total unit cost Cost of units transferred out: Started and competed Prior period costs Costs to finish Il Normal spoilage Total Grinding Department: Total units accounted for Note: (For direct materials: 11 bags are used to get 10 good bags). Transferred Conversion Costs In Total Unit cost of units started and completed: Direct Materials Costs added Total equivalent units Cost per equivalent unit Unit cost of units from beginning work in process: Prior period costs > Costs to finish: Direct materials Conversion costs Total IDU Unit cost per unit 2. Prepare the journal entry needed to remove spoilage from the Baking and Grinding departments. Round your answers to the nearest dollar if rounding is required. Loss Due to Spoilage Work In Process-Baking Fotch The following data are for four independent process-costing departments. Inputs are added continuously. A B D Beginning inventory 5,000 4,000 50,000 Percent completion 30% 75% 60% Units started 25,000 20,000 47,000 34,000 Ending Inventory 4,000 9,000 12,000 Percent completion 20% 30% 20% Required: Compute the equivalent units of production for each of the four departments using the FIFO method. Equivalent Units Department A 27,300 X Department B 23,000 X Department 49,700 X Department D 66,400 x Weighted Average Method, FIFO Method, Physical Flow, Equivalent Units Middelton Company manufactures a product that passes through two processes: Fabrication and Assembly The following information was obtained for the Fabrication Department for October: a. All materials are added at the beginning of the process. b. Beginning work in process had 89,800 units, 35 percent complete with respect to conversion costs. c. Ending work in process had 19,900 units, 40 percent complete with respect to conversion costs. d. Started in process, 106,500 units. 4. Suppose that the cost of direct materials in beginning work in process is $637,500 and that the direct materials cost incurred for October is $778,100. With these changes, answer the following: a. What is the unit materials cost for the units in BWIP? Round your answers to the nearest cent. 7.1 b. What is the unit materials cost for units produced in October? Round your answers to the nearest cent. 5.33 X Homework 05 (Ch 6 & 7) Appendix: Normal and Abnormal Spoilage In Process Casting, Changes in Output Measures, Multiple Departments Grayson Company produces an Industrial chemical used for cleaning and lubricating machinery. In the Mixing Department, liquid and dry chemicals are blended to form slurry. Output is measured in gallons. In the Baking Department, the slurry is subjected to high heat, and the residue appears in irregular lumps. Output is measured in pounds. In the Grinding Department, the irregular lumps are ground into a powder, and this powder is placed in 50-pound bags. Output is measured in bags produced, In April, the company reported the following data: a. The Moding Department transferred 51,500 gallons to the Baking Department, costing $206,000. Each pallon of slurry weighs two pounds b. The Baking Department transferred 103,000 pounds (irregular lumps) to the Grinding Department. At the beginning of the month, there were 5,900 gallons of slurry in process, 30 percent complete, costing $34,000 (transferred in cost of $23,600 plus conversion cost of $10,400). No additional direct materials are added in the Baking Department. At the end of April, there was no ending work in process Conversion costs for the month totaled $210,720. Normal loss during baking is 5 percent of good output. All transferred-in materials are lost, but since loss occurs uniformly throughout the process, only 50 percent of the conversion units are assumed to be lost. > c. The Grinding Department transferred 2,575 bags of chemicals to its finished goods warehouse. Beginning work in process for this department was 25,000 pounds, 35 percent complete with the following costs: transferred-in cost, $130,500; conversion cost, $14,500. Bags are used at the end of the process and cost $1.20 each. During bagging, normally one out of every 11 bags is torn and must be discarded. No powder is lost (the tearing occurs when the bag is being attached to a funnel). Conversion costs for the month's production are $181,260. There is no ending work in process Equivalent Units Conversion Transferred Costs In Total equivalent units Total unit cost Cost of units transferred out: Started and competed Prior period costs Costs to finish Il Normal spoilage Total Grinding Department: Total units accounted for Note: (For direct materials: 11 bags are used to get 10 good bags). Transferred Conversion Costs In Total Unit cost of units started and completed: Direct Materials Costs added Total equivalent units Cost per equivalent unit Unit cost of units from beginning work in process: Prior period costs > Costs to finish: Direct materials Conversion costs Total IDU Unit cost per unit 2. Prepare the journal entry needed to remove spoilage from the Baking and Grinding departments. Round your answers to the nearest dollar if rounding is required. Loss Due to Spoilage Work In Process-Baking Fotch The following data are for four independent process-costing departments. Inputs are added continuously. A B D Beginning inventory 5,000 4,000 50,000 Percent completion 30% 75% 60% Units started 25,000 20,000 47,000 34,000 Ending Inventory 4,000 9,000 12,000 Percent completion 20% 30% 20% Required: Compute the equivalent units of production for each of the four departments using the FIFO method. Equivalent Units Department A 27,300 X Department B 23,000 X Department 49,700 X Department D 66,400 x Weighted Average Method, FIFO Method, Physical Flow, Equivalent Units Middelton Company manufactures a product that passes through two processes: Fabrication and Assembly The following information was obtained for the Fabrication Department for October: a. All materials are added at the beginning of the process. b. Beginning work in process had 89,800 units, 35 percent complete with respect to conversion costs. c. Ending work in process had 19,900 units, 40 percent complete with respect to conversion costs. d. Started in process, 106,500 units. 4. Suppose that the cost of direct materials in beginning work in process is $637,500 and that the direct materials cost incurred for October is $778,100. With these changes, answer the following: a. What is the unit materials cost for the units in BWIP? Round your answers to the nearest cent. 7.1 b. What is the unit materials cost for units produced in October? Round your answers to the nearest cent. 5.33 X