Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Seacrest Company uses a process costing system. The company manufactures a product that is processed in two departments: A and B. As work is completed,
Seacrest Company uses a process costing system. The company manufactures a product that is processed in two departments: A and B. As work is completed, it is transferred out. All inputs are added uniformly in Department A. The following summarizes the production activity and costs for November: Department A Department B Beginning inventories: Physical units 5,000 8,000 Costs: Transferred in $45,320 Direct materials $10,000 Conversion costs $6,900 $16,800 Current production: Units started 25,000 ? Units transferred out 28,000 33,000 Costs: Transferred in - ? Direct materials $57,800 $37,950 Conversion costs $95,220 $128,100 Percentage completion: 40% 50% Beginning inventory Ending inventory 80% 50% Required: 1. Using the weighted average method, prepare the following for Department A: (a) a physical flow schedule, (b) an equivalent unit calculation, (c) calculation of unit costs (round to two decimal places), (d) cost of EWIP and cost of goods transferred out, and (e) a cost reconciliation. 2. CONCEPTUAL CONNECTION: Prepare journal entries that show the flow of manufacturing costs for Department A. Use a conversion cost control account for conversion costs. Many firms are now combining direct labor and overhead costs into one category. They are not tracking direct labor separately. Offer some reasons for this practice. Unit Costs 1(c) Using the weighted average method, prepare a calculation of unit costs for Department A. Refer to the list of Amount Descriptions for the exact wording of text items within your schedule. Round to two decimal places. (Note: Be sure to enter the unit cost below the table.) Department A-Cost Schedule Score: 8/54 1 Materials Conversion Total 2 $57,800.00 $95,220.00 3 4 Points: 1.78 / 12 What is the unit cost? $2.26 X Points: 0/1 Other Costs and Cost Reconciliation 1(d) Using the weighted average method, calculate the cost of EWIP and cost of goods transferred out for Department A. Cost of EWIP: $ Points: 0/1 Cost of goods transferred out: $ Points: 0/1 1(e) Using the weighted average method, prepare a cost reconciliation for Department A. Refer to the list of Amount Descriptions for the exact wording of text items within your schedule. Note: Costs to account for and Costs accounted for will differ due to rounding. Question not attempted. Department A-Cost Reconciliation Score: 0/52 1 Costs to account for: 2 3 4 5 Costs accounted for: 6 7 8 Journal 2. CONCEPTUAL CONNECTION: (a) Prepare journal entries on Nov. 30 that show the flow of manufacturing costs for Department A. Use a conversion cost control account for conversion costs. Refer to the Chart of Accounts for the exact wording of account titles. (Note: Be sure to complete part (b) below the journal.) Question not attempted. PAGE 18 GENERAL JOURNAL Score: 0/76 DATE ACCOUNT POST. REF. DEBIT CREDIT 1 2 3 4 5 6 Points: 0 / 15
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started