PE 20-1A Job Order Vs. Process Costing

Preview (2 of 2 Pages)

100%

Purchase to unlock

Loading page image...

PE 20-1A Job order vs. process costingWhich of the following industries would typically use job order costing, and which would typically useprocess costing?Flour millPlastic manufacturingGasoline refiningPrint shopMovie studioHome constructionAnswer:Process costing:Flour mill, Plastic manufacturing,Gasoline refining.Job order costing:Movie studio, Print shop,Home construction.PE 20-2A Units to be assigned costRosePetal Lotion Company consists of two departments, Blending and Filling. The Filling Departmentreceived 46,000 ounces from the Blending Department. During the period, the Filling Departmentcompleted 46,500 ounces, including 2,300 ounces of work in process at the beginning of the period.The ending work in process inventory was 1,800 ounces. How many ounces were started andcompleted during the period?Answer:Ounces started and completed during the period = 46,500-2,300 = 44,200 ouncesOR 46,000–1800 = 44,200 ouncesPE 20-3A Equivalent units of materials costThe Filling Department of Rose Petal Lotion Company had 2,300 ounces in beginning work in processinventory (70% complete). During the period, 46,500 ounces were completed. The ending work inprocess inventory was 1,800 ounces (25% complete). What are the total equivalent units fir directmaterials if materials are added at the beginning of the process?Answer:Total equivalent unit for direct material is 46,000, computed as follows:Total wholeunitsPercent materialsadded in periodEquivalent unit fordirect materialsInventory in process, beginning of period2,3000%0Started and completed during the period44,200100%44,200Transferred out of filling (Completed)46,500-44,200Inventory in process, end of period1,800100%1,800Total units to be assigned cost48,30046,000Started and completed during the period = 46,500–2,300 = 44,200PE 20-4A Equivalent units of conversion costsThe Filling Department ofRose Petal Lotion Company had 2,300 ounces in beginning work in processinventory (70% complete). During the period, 46,500 ounces were completed. The ending work inprocess inventory was 1,800 ounces (25% complete). What are the equivalent units for conversioncosts?Answer:Total wholeunitPercent conversioncompleted in periodEquivalent unitsfor conversionInventory in process, beginning of period2,30030%690Started and completed during the period44,200100%44,200Transferred out offilling (completed)46,500-44,890Inventory in process, end of period1,80025%450Total units to be assigned cost48,30045,340PE 20-5A Cost per equivalent unitThe cost of direct materials transferred into the Filling Department of Rose Petal Lotion Company is$18,400. The conversion cost for the period in the Filling Department is $4,534. The total equivalentunits for direct materials and conversion are 46,000 ounces and 45,340 ounces respectively. Determinethe direct materials and conversion costs per equivalent unit.

Loading page image...

Report

Study Now!

Document Details

Related Documents

Accounting

Master Managerial Accounting Techniques

Controlling and Reporting of Real Assets

Sarbanes Oxley Act, GAAP and IFRS

Accounting Audit Final Exam MCQs 2015

Team A Week 5 Problems

IFRS or US GAAP Which is the Best Reporting Standard

Understanding Key Concepts in Managerial Accounting

Financial Reporting, Regulations, and Corporate Governance

Midterm Exam on Governmental and Not-for-Profit Accounting

Company

Explore

Study Tools