P17-4B Luxman Company has several processing departments. Costs charged to the Assembly Department for October 2017 totaled $1,298,400 as follows.

Work in process units, October 1

Materials $29,000

Conversion costs 16,500 $ 45,500

Materials added 1,006,000

Labor 138,900

Overhead 108,000

Production records show that 25,000 units were in beginning work in process 40% complete as to conversion cost, 435,000 units were started into production, and 35,000 units were in ending work in process 40% complete as to conversion costs. Materials are entered at the beginning of each process.

Instructions

(a) Determine the equivalent units of production and the unit production costs for the Assembly Department.

(b) Determine the assignment of costs to goods transferred out and in process.

(c) Prepare a production cost report for the Assembly Department.

Chapter 17 Problems: Set B P17-1B Wilbury Company manufactures a nutrient, Everlife, through two manufacturing processes: Blending and Packaging. All materials are entered at the beginning of each process. On August 1, 2017, inventories consisted of Raw Materials $5,000, Work in ProcessBlending $0, Work in ProcessPackaging $3,945, and Finished Goods $7,500. The beginning inventory for Packaging consisted of 500 units, two-fifths complete as to conversion costs and fully complete as to materials. During August, 9,000 units were started into production in Blending, and the following transactions were completed. Journalize transactions. (LO 2) 1. 2. 3. 4. 5. 6. Purchased $25,000 of raw materials on account. Issued raw materials for production: Blending $18,930 and Packaging $9,140. Incurred labor costs of $25,770. Used factory labor: Blending $15,320 and Packaging $10,450. Incurred $36,500 of manufacturing overhead on account. Applied manufacturing overhead at the rate of $28 per machine hour. Machine hours were Blending 900 and Packaging 300. 7. Transferred 8,200 units from Blending to Packaging at a cost of $44,940. 8. Transferred 8,600 units from Packaging to Finished Goods at a cost of $67,490. 9. Sold goods costing $62,000 for $90,000 on account. Instructions Journalize the August transactions. P17-2B Steiner Corporation manufactures water skis through two processes: Molding and Packaging. In the Molding Department, fiberglass is heated and shaped into the form of a ski. In the Packaging Department, the skis are placed in cartons and sent to the finished goods warehouse. Materials are entered at the beginning of both processes. Labor and manufacturing overhead are incurred uniformly throughout each process. Production and cost data for the Molding Department for January 2017 are presented below. Production Data Beginning work in process units Units started into production Ending work in process units Percent completeending inventory Cost Data Materials Labor Overhead Total Complete four steps necessary to prepare a production cost report. (LO 3, 4) January -0- 50,000 2,500 40% January $510,000 92,500 150,000 $752,000 Instructions (a) Compute the physical units of production. (b) Determine the equivalent units of production for materials and conversion costs. (c) Compute the unit costs of production. (d) Determine the costs to be assigned to the units transferred out and in process. (e) Prepare a production cost report for the Molding Department for the month of January. (c) Materials $10.20 CC $5 (d) Transferred out $722,000 WIP $30,500 Complete four steps necessary to prepare a production cost report. (LO 3, 4) P17-3B Borman Corporation manufactures in separate processes refrigerators and freezers for homes. In each process, materials are entered at the beginning and conversion costs are incurred uniformly. Production and cost data for the first process in making two products in two different manufacturing plants are as follows. Production DataJune Work in process units, June 1 Units started into production Work in process units, June 30 Work in process percent complete Cost DataJune Work in process, June 1 Materials Labor Overhead Total (a) (3) R:12 Materials $42 CC $35 (a) (4) R:12 Transferred out $1,232,000 WIP $ 273,000 Assign costs and prepare production cost report. (LO 3, 4) Stamping Department Plant A Plant B R12 Refrigerators F24 Freezers -0- -0- 20,000 20,000 4,000 2,500 75 60 -0- 840,000 245,000 420,000 $1,505,000 $ -0- 720,000 259,000 292,000 $1,271,000 $ Instructions (a) For each plant: (1) Compute the physical units of production. (2) Compute equivalent units of production for materials and for conversion costs. (3) Determine the unit costs of production. (4) Show the assignment of costs to units transferred out and in process. (b) Prepare the production cost report for Plant A for June 2017. P17-4B Luxman Company has several processing departments. Costs charged to the Assembly Department for October 2017 totaled $1,298,400 as follows. Work in process units, October 1 Materials Conversion costs Materials added Labor Overhead $29,000 16,500 $ 45,500 1,006,000 138,900 108,000 Production records show that 25,000 units were in beginning work in process 40% complete as to conversion cost, 435,000 units were started into production, and 35,000 units were in ending work in process 40% complete as to conversion costs. Materials are entered at the beginning of each process. (b) Transferred out $1,211,250 WIP $ 87,150 Instructions (a) Determine the equivalent units of production and the unit production costs for the Assembly Department. (b) Determine the assignment of costs to goods transferred out and in process. (c) Prepare a production cost report for the Assembly Department. P17-5B Swinn Company manufactures bicycles. Materials are added at the beginning of the production process, and conversion costs are incurred uniformly. Production and cost data for the month of May are as follows. Percent Production DataBicycles Units Complete Work in process units, May 1 500 80% Units started in production 2,000 Work in process units, May 31 800 40% Cost DataBicycles Work in process, May 1 Materials Conversion costs Direct materials Direct labor Manufacturing overhead $15,000 18,000 P17-6B Venuchi Cleaner Company uses a weighted-average process cost system and manufactures a single productan all-purpose liquid cleaner. The manufacturing activity for the month of March has just been completed. A partially completed production cost report for the month of March for the mixing and blending department is shown below. Venuchi Cleaner Company Mixing and Blending Department Production Cost Report For the Month Ended March 31 Equivalent Units Physical Conversion Quantities Units Materials Costs Units to be accounted for Work in process, March 1 10,000 Started into production 76,000 Total units 86,000 Costs Unit costs Total cost Equivalent units Unit costs 66,000 ? ? 20,000 86,000 ? ? ? ? Materials Conversion Costs $156,000 ? $ ? (LO 3, 4) $33,000 50,000 19,020 33,680 Instructions (a) Calculate the following. (1) The equivalent units of production for materials and conversion. (2) The unit costs of production for materials and conversion costs. (3) The assignment of costs to units transferred out and in process at the end of the accounting period. (b) Prepare a production cost report for the month of May for the bicycles. Units accounted for Transferred out Work in process, March 31 (60% materials, 20% conversion costs) Total units Determine equivalent units and unit costs and assign costs. $98,000 ? + $ ? Total $254,000 = $ ? (2) Materials $26 CC $35 (3) Transferred out $103,700 WIP $32,000 32,000 Compute equivalent units and complete production cost report. (LO 3, 4) Costs to be accounted for Work in process, March 1 Started into production Total cost $ 8,700 245,300 $254,000 Cost Reconciliation Schedule Costs accounted for Transferred out Work in process, March 31 Materials Conversion costs Total costs Materials Conversion Costs $ Total $ ? $ ? ? ? ? (a) Materials $2.00 (b) Transferred out $224,400 WIP $ 29,600 Instructions (a) Prepare a schedule that shows how the equivalent units were computed so that you can complete the \"Quantities: Units accounted for\" equivalent units section shown in the production cost report above, and compute March unit costs. (b) Complete the \"Cost Reconciliation Schedule\" part of the production cost report above. Determine equivalent units and unit costs and assign costs for processes; prepare production cost report. *P17-7B Holiday Company manufactures basketballs and soccer balls. For both products, materials are added at the beginning of the production process and conversion costs are incurred uniformly. Holiday uses the FIFO method to compute equivalent units. Production and cost data for the month of August are shown below. (LO 5) Percent Production DataBasketballs Units Complete Production DataSoccer Balls Units Work in process units, August 1 500 60% Work in process units, August 1 200 Units started into production 2,000 Units started into production 2,000 Work in process units, August 31 600 50% Work in process units, August 31 150 Cost DataBasketballs Work in process units, August 1 Direct materials Direct labor Manufacturing overhead (a) (1) (2) (3) Basketballs: Materials 2,000 Materials $.80 Transferred out $4,165 WIP $840 $1,125 1,600 1,280 1,000 Cost DataSoccer Balls Work in process, August 1 Direct materials Direct labor Manufacturing overhead Percent Complete 80% 70% $ 450 2,800 1,000 1,394 Instructions (a) Calculate the following for both the basketballs and the soccer balls. (1) The equivalent units of production for materials and conversion costs. (2) The unit costs of production for materials and conversion costs. (3) The assignment of costs to units transferred out and in process at the end of the accounting period. (b) Prepare a production cost report for the month of August for the basketballs only