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Ivanhoe Company has the following production data for selected months.
Ending
Work in Process
Month
Beginning
Work in Process
Units
Transferred Out Units
% Complete as to
Conversion Cost
January –0– 37,800 10,800 40 %
March –0– 43,200 8,640 75
July –0– 48,600 17,280 25
Compute equivalent units of production for materials and conversion costs, assuming that
materials are entered at the beginning of the process and that conversion costs are incurred
uniformly throughout the process.
Materials Conversion Costs
January
March
July
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The Smelting Department of Blossom Company has the following production data for November.
Beginning work in process 2,040 units that are 100% complete as to materials and 20% complete
as to conversion costs; units completed and transferred out 9,180 units; and ending work in
process 7,140 units that are 100% complete as to materials and 40% complete as to conversion
costs.
Compute the equivalent units of production for (a) materials and (b) conversion costs for the
month of November.
Materials Conversion Costs
Total equivalent units
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(a1)
(a2)
The parts of this question must be completed in order. This part will be available when you
complete the part above.
In Crane Company, total materials costs are $41,600, and total conversion costs are $68,040 for
June. Equivalent units of production are materials 10,000 and conversion costs 12,000.
Compute the unit costs for materials and conversion costs. (Round answers to 2 decimal places,
e.g. 2.25.)
Materials cost per unit $
Conversion cost per unit $
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Cullumber Company has the following production data for March 2022: no beginning work in process, units started and
completed 25,200, and ending work in process 4,200 units that are 100% complete for materials and 40% complete for
conversion costs. Cullumber uses the FIFO method to compute equivalent units. If unit materials cost is $7 and unit conversion
cost is $11, determine the costs to be assigned to the units completed and transferred out and the units in ending work in process.
The total costs to be assigned are $501,480.
Completed and transferred out $
Ending work in process $
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Sandhill Company purchases $60,000 of raw materials on account, and it incurs $72,000 of factory labor costs.
Journalize the two transactions on March 31, assuming the labor costs are not paid until April. (List all debit entries before credit
entries. Credit account titles are automatically indented when amount is entered. Do not indent manually.)
Date Account Titles and Explanation Debit Credit
Mar.
31
(To record raw materials purchased)
31
(To record factory labor costs)
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Production costs of the Finishing Department in June in Oriole Company are materials $24,000,
labor $59,000, and overhead $36,000. Equivalent units of production are materials 40,000 and
conversion costs 38,000. Production records indicate that 36,000 units were completed and
transferred out, and 4,000 units in ending work in process were 50% complete as to conversion
costs and 100% complete as to materials.
Prepare a cost reconciliation schedule. (Round unit costs to 2 decimal places, e.g. 2.25 and �nal
answers to 0 decimal places, e.g. 125.)
Cost Reconciliation
Cost accounted for
Transferred out $
Work in process
Materials $
Conversion costs
Total cost accounted for $
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Ivanhoe Company purchases $43,000 of raw materials on account, and it incurs $51,600 of factory labor costs. Supporting
records show that (a) the Assembly Department used $20,640 of direct materials and $30,100 of direct labor, and (b) the
Finishing Department used the remainder.
Journalize the assignment of the costs to the processing departments on March 31. (List all debit entries before credit entries. Credit
account titles are automatically indented when amount is entered. Do not indent manually.)
Date Account Titles and Explanation Debit Credit
Mar.
31
(To record materials used)
31
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(To assign factory labor to production)
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At Oriole Company, overhead is assigned to production departments at the rate of $5 per machine hour. In July, machine hours
were 3,300 in the Machining Department and 2,640 in the Assembly Department.
Prepare the entry to assign overhead to production. (List all debit entries before credit entries. Credit account titles are automatically
indented when amount is entered. Do not indent manually.)
Date Account Titles and Explanation Debit Credit
July 31
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The Sanding Department of Crane Furniture Company has the following production and manufacturing cost data for March 2022,
the �rst month of operation.
Production: 7,280 units completed and transferred out; 3,120 units in ending work in process are 100% complete as to materials and
20% complete as to conversion costs.
Manufacturing costs: Materials $34,320; labor $21,840; and overhead $37,440.
Prepare a production cost report. (Round unit costs to 2 decimal places, e.g. 2.25 and other answers to 0 decimal places, e.g. 125.)
CRANE FURNITURE COMPANY
Sanding Department
Production Cost Report
Equivalent Units
Quantities
Physical
Units Materials
Conversion
Costs
Units to be accounted for
Work in process, March 1
Started into production
Total units
Units accounted for
Completed and Transferred out
Work in process, March 31
Total units
Costs Materials
Conversion
Costs
Unit costs
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Total Costs $ $
Equivalent units
Unit costs $ $
Cost Reconciliation Schedule
Costs to be accounted for
Work in process, March 1
Started into production
Total costs
Costs accounted for
Completed and transferred out
Work in process, March 31
Materials $
Conversion costs
Total costs
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Pharoah Company manufactures pizza sauce through two production departments: Cooking and Canning. In each process,
materials and conversion costs are incurred evenly throughout the process. For the month of April, the work in process inventory
accounts show the following debits.
Cooking Canning
Beginning work in process $0 $4,480
Direct materials 23,520 10,080
Direct labor 9,520 7,840
Manufacturing overhead 35,280 28,960
Costs transferred in 59,360
Journalize the April transactions. (List all debit entries before credit entries. Credit account titles are automatically indented when
amount is entered. Do not indent manually.)
Date Account Titles and Explanation Debit Credit
April
30
221 HW4 Ch 21
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(To record materials used)
30
(To assign direct labour to production)
30
(To assign overhead to production)
30
(To record transfer of units to the Canning Department)
221 HW4 Ch 21
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