{"id":6729,"date":"2021-10-10T16:20:54","date_gmt":"2021-10-10T16:20:54","guid":{"rendered":"https:\/\/assignmenttutors.net\/blog\/chapter-3-and-chapter-4-homework-principles-of-accounting-ii\/"},"modified":"2021-10-10T16:20:54","modified_gmt":"2021-10-10T16:20:54","slug":"chapter-3-and-chapter-4-homework-principles-of-accounting-ii","status":"publish","type":"post","link":"https:\/\/assignmenttutors.net\/blog\/chapter-3-and-chapter-4-homework-principles-of-accounting-ii\/","title":{"rendered":"Chapter 3 and chapter 4 homework principles of accounting ii"},"content":{"rendered":"<div>\n<p>Chapter 3<\/p>\n<p>1.Rustafson Corporation is a diversified manufacturer of consumer goods. The company&#8217;s activity-based costing system has the following seven activity cost pools:<\/p>\n<p>Activity Cost Pool\u00a0Estimated<br \/>Overhead Cost\u00a0<br \/>Expected Activity<br \/>Labor-related\u00a0$ 51,000\u00a08,000 direct labor-hours<br \/>Machine-related\u00a0$ 14,900\u00a020,525 machine-hours<br \/>Machine setups\u00a0$ 44,000\u00a0500 setups<br \/>Production orders\u00a0$ 18,000\u00a0400 orders<br \/>Product testing\u00a0$ 50,000\u00a01,700 tests<br \/>Packaging\u00a0$ 67,125\u00a05,200 packages<br \/>General factory\u00a0$101,125\u00a08,000 direct labor-hours<\/p>\n<p>\u00a0<\/p>\n<p>\u00a0<\/p>\n<p>\u00a0<\/p>\n<p>\u00a0<\/p>\n<p>Required:<br \/>1.\u00a0 Compute the activity rate for each activity cost pool. (Round your answers to 2 decimal places.)<\/p>\n<p>\u00a0<\/p>\n<p>\u00a0<\/p>\n<p>\u00a0<\/p>\n<p>\u00a0<\/p>\n<p>\u00a0<\/p>\n<p>\u00a0<\/p>\n<p>\u00a0<\/p>\n<p>General factory\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 $\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 per DLH<\/p>\n<p>\u00a0<\/p>\n<p>2.<\/p>\n<p>\u00a0<\/p>\n<p>2.\u00a0 Compute the company&#8217;s predetermined overhead rate, assuming that the company uses a single plantwide predetermined overhead rate based on direct labor-hours. (Round your answer to 2 decimal places.)<\/p>\n<p>Predetermined overhead rate\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 $\u00a0\u00a0per DLH<br \/>\u00a0<\/p>\n<p>\u00a0<\/p>\n<p>3.<\/p>\n<p>Sultan Company uses an activity-based costing system.<br \/>At the beginning of the year, the company made the following estimates of cost and activity for its five activity cost pools:<\/p>\n<p>Activity Cost Pool\u00a0<br \/>Activity Measure\u00a0Estimated<br \/>Overhead Cost\u00a0Expected<br \/>Activity<br \/>Labor-related\u00a0Direct labor-hours\u00a0$ 280,000\u00a040,000 DLHs<br \/>Purchase orders\u00a0Number of orders\u00a0$\u00a0\u00a0 90,000\u00a01,500 orders<br \/>Parts management\u00a0Number of part types\u00a0$ 120,000\u00a0400 part types<br \/>Board etching\u00a0Number of boards\u00a0$ 360,000\u00a02,000 boards<br \/>General factory\u00a0Machine-hours\u00a0$ 400,000\u00a080,000 MHs<\/p>\n<p>Required:<br \/>1.\u00a0 Compute the activity rate for each of the activity cost pools.<\/p>\n<p>\u00a0<\/p>\n<p>\u00a0<\/p>\n<p>\u00a0<\/p>\n<p>\u00a0<\/p>\n<p>\u00a0<\/p>\n<p>General factory\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 $\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 per MH<\/p>\n<p>\u00a0<\/p>\n<p>2.\u00a0\u00a0 The expected activity for the year was distributed among the company\u2019s four products as follows:<\/p>\n<p>Expected Activity<\/p>\n<p>Activity Cost Pool\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Product A\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Product B\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Product C\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Product D<br \/>Labor-related (DLHs)\u00a05,800\u00a07,900\u00a03,700\u00a05,400<br \/>Purchase orders (orders)\u00a055\u00a030\u00a020\u00a087<br \/>Parts management (part types)\u00a035\u00a028\u00a036\u00a019<br \/>Board etching (boards)\u00a0410\u00a0907\u00a0412\u00a00<br \/>General factory (MHs)\u00a02,600\u00a08,100\u00a04,800\u00a05,500<\/p>\n<p>Using the ABC data, determine the total amount of overhead cost assigned to each product. (Leave no cells blank &#8211; be certain to enter &#8220;0&#8221; wherever required.)<\/p>\n<p>\u00a0<\/p>\n<p>\u00a0<\/p>\n<p>Labor-related (DLHs)\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 $<\/p>\n<p>\u00a0<\/p>\n<p>\u00a0<\/p>\n<p>\u00a0<\/p>\n<p>General factory (MHs)<\/p>\n<p>Total\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 $<\/p>\n<p>\u00a0<\/p>\n<p>Rusties Company recently implemented an activity-based costing system. At the beginning of the year, management made the following estimates of cost and activity in the company\u2019s five activity cost pools:<\/p>\n<p>\u00a0<\/p>\n<p>Activity Cost Pool\u00a0<\/p>\n<p>Activity Measure\u00a0Expected<br \/>Overhead<br \/>Cost\u00a0<\/p>\n<p>Expected Activity<br \/>Labor-related\u00a0Direct labor-hours\u00a0$ 272,000\u00a030,000 DLHs<br \/>Purchase orders\u00a0Number of orders\u00a0$\u00a0\u00a0 63,000\u00a0750 orders<br \/>Product testing\u00a0Number of tests\u00a0$ 182,000\u00a01,200 tests<br \/>Template etching\u00a0Number of templates\u00a0$ 320,000\u00a08,000 templates<br \/>General factory\u00a0Machine-hours\u00a0$ 837,000\u00a060,000 MHs<\/p>\n<p>\u00a0<\/p>\n<p>4.<\/p>\n<p>\u00a0<\/p>\n<p>Required:<br \/>1.\u00a0 Compute the activity rate for each of the activity cost pools. (Round your answers to 2 decimal places.)<\/p>\n<p>\u00a0<\/p>\n<p>\u00a0<\/p>\n<p>\u00a0<\/p>\n<p>\u00a0<\/p>\n<p>\u00a0<\/p>\n<p>General factory\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 $\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 per MH<\/p>\n<p>\u00a0<\/p>\n<p>5.<\/p>\n<p>\u00a0<\/p>\n<p>2.\u00a0 The expected activity for the year was distributed among the company\u2019s four products as follows: <br \/>Expected Activity<\/p>\n<p>Activity Cost Pool\u00a0Product A\u00a0Product B\u00a0Product C\u00a0Product D<br \/>Labor-related (DLHs)\u00a07,600\u00a011,200\u00a03,800\u00a09,400<br \/>Purchase orders (orders)\u00a0160\u00a0190\u00a0110\u00a0240<br \/>Product testing (tests)\u00a0105\u00a0535\u00a0260\u00a0400<br \/>Template etching (templates)\u00a02,400\u00a00\u00a05,500\u00a00<br \/>General factory (MHs)\u00a012,500\u00a016,500\u00a013,200\u00a018,800<\/p>\n<p>Using the ABC data, determine the total amount of overhead cost assigned to each product. (Do not round intermediate calculations. Round your answers to the nearest dollar amount.)<\/p>\n<p>Total<br \/>Overhead Cost<br \/>Product A\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 $\u00a0\u00a0<br \/>\u00a0\u00a0<br \/>Product B\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 $\u00a0\u00a0<br \/>\u00a0\u00a0<br \/>Product C\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 $\u00a0\u00a0<br \/>\u00a0\u00a0<br \/>Product D\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 $\u00a0\u00a0<br \/>\u00a0<\/p>\n<p>\u00a0<\/p>\n<p>6.<\/p>\n<p>Gino\u2019s Restaurant is a popular restaurant of Boston, Massachusetts. The owner of the restaurant has been trying to better understand costs at the restaurant and has hired a student intern to conduct an activity-based costing study. The intern, in consultation with the owner, identified the following major activities:<\/p>\n<p>Activity Cost Pool\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Activity Measure Serving a party of diners\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Number of parties served Serving a diner\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Number of diners served Serving drinks\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Number of drinks ordered<\/p>\n<p>A group of diners who ask to sit at the same table is counted as a party. Some costs, such as the costs of cleaning linen, are the same whether one person is at a table or the table is full. Other costs, such as washing dishes, depend on the number of diners served.<\/p>\n<p>Data concerning these activities are shown below.<\/p>\n<p>\u00a0Serving a Party\u00a0Serving a Dinner\u00a0Serving Drinks\u00a0Total<br \/>Total cost\u00a0$ 31,000\u00a0$ 214,000\u00a0$ 67,000\u00a0$ 312,000<br \/>Total activity\u00a06,000 parties\u00a015,000 diners\u00a010,000 drinks\u00a0<\/p>\n<p>Prior to the activity-based costing study, the owner knew very little about the costs of the restaurant. She knew that the total cost for the month was $312,000 and that 15,000 diners had been served. Therefore, the average cost per diner was $20.80 ($312,000 \u00f7 15,000 diners = $20.80 per diner).<\/p>\n<p>Required:<br \/>1.\u00a0\u00a0 Compute the activity rates for each of the three activities.(Round your answers to 2 decimal places.)<\/p>\n<p>\u00a0<\/p>\n<p>\u00a0<\/p>\n<p>Serving Drinks\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 $\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 per drink<\/p>\n<p>2.\u00a0 According to the activity-based costing system, what is the total cost of serving each of the following parties of diners? (Do not round intermediate calculations. Round your final answers to 2 decimal places.)<\/p>\n<p>a.\u00a0A party of four diners who order three drinks in total.<br \/>b.\u00a0A party of two diners who do not order any drinks.<br \/>c.\u00a0A lone diner who orders two drinks.<\/p>\n<p>\u00a0<\/p>\n<p>\u00a0<\/p>\n<p>Party of one diner who orders two drinks\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 $<\/p>\n<p>3.\u00a0 Convert the total costs you computed in Requirement 2 above to costs per diner. In other words, what is the average cost per diner for serving each of the following parties? (Do not round intermediate calculations. Round your final answers to 2 decimal places.)<\/p>\n<p>a.\u00a0A party of four diners who order three drinks in total.<br \/>b.\u00a0A party of two diners who do not order any drinks.<br \/>c.\u00a0A lone diner who orders two drinks.<\/p>\n<p>\u00a0<\/p>\n<p>\u00a0<\/p>\n<p>Party of one diner who orders two drinks\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 $\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 per diner<\/p>\n<p>\u00a0<\/p>\n<p>7.<\/p>\n<p>Adria Company recently implemented an activity-based costing system. At the beginning of the year, management made the following estimates of cost and activity in the company\u2019s five activity cost pools:<\/p>\n<p>\u00a0<\/p>\n<p>Activity Cost Pool\u00a0<br \/>Activity<br \/>Measure\u00a0Expected<br \/>Overhead<br \/>Cost\u00a0<br \/>Expected<br \/>Activity<br \/>Labor-related\u00a0Direct labor-hours\u00a0$206,500\u00a035,000 DLHs<br \/>Purchase orders\u00a0Number of orders\u00a0$\u00a0 68,040\u00a0900 orders<br \/>Material receipts\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Number of receipts\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 $160,860\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 1,400 receipts<br \/>Relay assembly\u00a0Number of relays\u00a0$302,400\u00a010,500 relays<br \/>General factory\u00a0Machine-hours\u00a0$805,000\u00a070,000 MHs<br \/>\u00a0<\/p>\n<p>\u00a0<\/p>\n<p>\u00a0<\/p>\n<p>Required:<br \/>1. Compute the activity rate for each of the activity cost pools.(Round your answer to 2 decimal places.)<\/p>\n<p>\u00a0<\/p>\n<p>\u00a0<\/p>\n<p>\u00a0<\/p>\n<p>\u00a0<\/p>\n<p>\u00a0<\/p>\n<p>General factory\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 $\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 per MH<\/p>\n<p>\u00a0<\/p>\n<p>8.<\/p>\n<p>2.\u00a0\u00a0 The expected activity for the year was distributed among the company&#8217;s four products as follows:<\/p>\n<p>Expected Activity<\/p>\n<p>Activity Cost Pool\u00a0Product A\u00a0Product B\u00a0Product C\u00a0Product D<br \/>Labor-related (DLHs)\u00a05,600\u00a07,600\u00a09,900\u00a08,900<br \/>Production orders (orders)\u00a0135\u00a0300\u00a080\u00a0435<br \/>Material receipts (receipts)\u00a0360\u00a0175\u00a0220\u00a0545<br \/>Relay assembly (relay)\u00a00\u00a04,550\u00a00\u00a06,950<br \/>General factory (MHs)\u00a010,300\u00a020,700\u00a016,500\u00a020,500<\/p>\n<p>Using the ABC data, determine the total amount of overhead cost assigned to each product. (Do not round intermediate calculations. Round your answers to the nearest dollar amount.)<\/p>\n<p>\u00a0<\/p>\n<p>Product A\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 $\u00a0\u00a0<br \/>\u00a0\u00a0<br \/>Product B\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 $\u00a0\u00a0<br \/>\u00a0\u00a0<br \/>Product C\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 $\u00a0\u00a0<br \/>\u00a0\u00a0<br \/>Product D\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 $\u00a0\u00a0<br \/>\u00a0<br \/>\u00a0<\/p>\n<p>Chapter 4<\/p>\n<p>1.<\/p>\n<p>The PVC Company manufactures a high-quality plastic pipe that goes through three processing stages prior to completion.<\/p>\n<p>Information on work in the first department, Cooking, is given below for May:<\/p>\n<p>Production data:<br \/>Pounds in process, May 1: materials 100%<br \/>complete; conversion 90% complete\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 81,000<br \/>Pounds started into production during May\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 460,000<br \/>Pounds completed and transferred to<br \/>the next department\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 ? Pounds in process, May 31:<br \/>materials 80% complete; conversion 20% complete\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 55,000<br \/>Cost data:<br \/>Work in process inventory, May 1:<br \/>Materials cost\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 $\u00a0 158,200<br \/>Conversion cost\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 $\u00a0\u00a0\u00a0 50,500<br \/>Cost added during May:<br \/>Materials cost\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 $\u00a0 822,300<br \/>Conversion cost\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 $\u00a0 277,520<\/p>\n<p>The company uses the weighted-average method.<\/p>\n<p>Required:<br \/>1.\u00a0 Compute the equivalent units of production.<\/p>\n<p>Equivalent units of production<\/p>\n<p>2.\u00a0 Compute the costs per equivalent unit for the month. (Round your answers to 2 decimal places.)<\/p>\n<p>Cost per equivalent unit\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 $<\/p>\n<p>3.\u00a0 Determine the cost of ending work in process inventory and of the units transferred out to the next department. (Round your intermediate calculation to 2 decimal places and final answers to the nearest whole dollar amount.)<\/p>\n<p>Materials\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Conversion\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Total<br \/>Cost of ending work in process inventory\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 $\u00a0\u00a0<br \/>$\u00a0\u00a0<br \/>$\u00a0\u00a0<br \/>\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0<br \/>Cost of units completed and transferred out\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 $\u00a0\u00a0<br \/>$\u00a0\u00a0<br \/>$\u00a0\u00a0<br \/>\u00a0\u00a0\u00a0\u00a0\u00a0<br \/>\u00a0<\/p>\n<p>4.\u00a0 Prepare a cost reconciliation report for the month. (Round your intermediate calculation to 2 decimal places and final answers to the nearest whole dollar amount.)<br \/>\u00a0<\/p>\n<p>Costs to be accounted for:<br \/>\u00a0<br \/>Cost Reconciliation<\/p>\n<p>\u00a0<\/p>\n<p>\u00a0<\/p>\n<p>Total cost to be accounted for\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 $<\/p>\n<p>Costs accounted for as follows:<\/p>\n<p>\u00a0<\/p>\n<p>\u00a0<\/p>\n<p>Total cost accounted for\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 $<\/p>\n<p>\u00a0<\/p>\n<p>2.<\/p>\n<p>Brady Products manufactures a silicone paste wax that goes through three processing departments\u2014Cracking, Blending, and Packing. All raw materials are introduced at the start of work in the Cracking Department. The Work in Process T-account for the Cracking Department for a recent month is given below:<\/p>\n<p>Work in Process\u2014Cracking Department<br \/>\u00a0<\/p>\n<p>Inventory, May 1\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 228,200\u00a0Completed and transferred to<br \/>the Blending Department\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 ?<br \/>Materials\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 757,990\u00a0<br \/>Conversion\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 403,410\u00a0<br \/>\u00a0<br \/>Inventory, May 31\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 ?\u00a0<\/p>\n<p>The May 1 work in process inventory consisted of 70,000 pounds with $142,100 in materials cost and $86,100 in conversion cost. The May 1 work in process inventory was 100% complete with respect to materials and 80% complete with respect to conversion. During May, 341,000 pounds were started into production. The May 31 inventory consisted of 121,000 pounds that were 100% complete with respect to materials and 60% complete with respect to conversion. The company uses the weighted-average method to account for units and costs.<\/p>\n<p>Required:<br \/>1.\u00a0 Determine the equivalent units of production for May.<\/p>\n<p>Equivalent units of production<\/p>\n<p>2.\u00a0 Determine the costs per equivalent unit for May. (Round your answers to 2 decimal places.)<\/p>\n<p>Cost per equivalent unit\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 $<\/p>\n<p>3.\u00a0 Determine the cost of the units completed and transferred to the Blending Department during May. (Round your intermediate calculation to 2 decimal places. Round your final answers to nearest whole dollar amount.)<br \/>\u00a0<\/p>\n<p>Cost of units completed and transferred out<\/p>\n<p>3.<br \/>\u00a0<br \/>Materials\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Conversion\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Total <br \/>Nature\u2019s Way, Inc., keeps one of its production facilities busy making a perfume called Essence de la Vache. The perfume goes through two processing departments: Blending and Bottling.<\/p>\n<p>The following incomplete Work in Process account is provided for the Blending Department for March:<\/p>\n<p>Work in Process\u2014Blending<br \/>\u00a0<\/p>\n<p>March 1 balance\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 32,800\u00a0Completed and transferred<br \/>to Bottling (760,000 ounces)\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 ?<br \/>Materials\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 153,600\u00a0<br \/>Direct labor\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 71,200\u00a0<br \/>Overhead\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 489,000\u00a0<br \/>\u00a0<br \/>March 31 balance\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 ?\u00a0<br \/>\u00a0\u00a0<br \/>\u00a0\u00a0<br \/>\u00a0\u00a0<\/p>\n<p>The $32,800 beginning inventory in the Blending Department consisted of the following elements: materials,<br \/>$7,900; direct labor, $3,600; and overhead applied, $21,300.<br \/>Costs incurred during March in the Bottling Department were: materials used, $45,000; direct labor, $17,600;<br \/>and overhead cost applied to production, $106,000.<\/p>\n<p>Required:<br \/>1.\u00a0 Prepare journal entries to record the costs incurred in both the Blending Department and Bottling Department during March.<\/p>\n<p>a.\u00a0Raw materials were issued for use in production.<br \/>b.\u00a0Direct labor costs were incurred.<br \/>c.\u00a0Manufacturing overhead costs for the entire factory were incurred, $636,000. (Credit Accounts Payable and use<br \/>a single Manufacturing Overhead control account for the entire factory.)<br \/>d.\u00a0Manufacturing overhead was applied to production using a predetermined overhead rate.<br \/>e.\u00a0Units that were complete with respect to processing in the Blending Department were transferred to the Bottling<br \/>Department, $662,000.<br \/>f.\u00a0Units that were complete with respect to processing in the Bottling Department were transferred to Finished<br \/>Goods, $790,000.<br \/>g.\u00a0Completed units were sold on account for $1,320,000. The cost of goods sold was $680,000.<br \/>\u00a0<br \/>Items\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 General Journal\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Debit\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Credit a.\u00a0(Click to select)<\/p>\n<p>(Click to select)<\/p>\n<p>(Click to select)<\/p>\n<p>b.\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 (Click to select)<\/p>\n<p>(Click to select)<\/p>\n<p>(Click to select)<\/p>\n<p>c.\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 (Click to select)<\/p>\n<p>(Click to select)<\/p>\n<p>d.\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 (Click to select)<\/p>\n<p>(Click to select)<\/p>\n<p>(Click to select)<\/p>\n<p>e.\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 (Click to select)<\/p>\n<p>(Click to select)<\/p>\n<p>f.\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 (Click to select)<\/p>\n<p>(Click to select)<\/p>\n<p>g.\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 (Click to select)<\/p>\n<p>(Click to select)<\/p>\n<p>(Click to select)<\/p>\n<p>(Click to select)<\/p>\n<p>\u00a0<\/p>\n<p>2.\u00a0 Post the journal entries from (1) above to T-accounts. The following account balances existed at the beginning of March. (The beginning balance in the Blending Department\u2019s Work in Process account is given above.) (Record the transactions in the given order.)<\/p>\n<p>Raw materials\u00a0$\u00a0 208,600<br \/>Work in process-Bottling department\u00a0$\u00a0\u00a0\u00a0 52,000<br \/>Finished goods\u00a0$\u00a0\u00a0\u00a0 16,000<\/p>\n<p>After\u00a0 posting\u00a0 the\u00a0 entries\u00a0 to\u00a0 the\u00a0 T-accounts,\u00a0 find\u00a0 the\u00a0 ending\u00a0 balances\u00a0 in\u00a0 the\u00a0 inventory\u00a0 accounts\u00a0 and\u00a0 the manufacturing overhead account. <br \/>Accounts Receivable<br \/>\u00a0<\/p>\n<p>(Click to select)\u00a0<\/p>\n<p>Raw Materials<\/p>\n<p>Bal.\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 (Click to select)<\/p>\n<p>Bal.<\/p>\n<p>\u00a0<\/p>\n<p>\u00a0<\/p>\n<p>Work in Process &#8211; Blending Department<\/p>\n<p>Bal.\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 (Click to select)<\/p>\n<p>(Click to select)<\/p>\n<p>(Click to select)<\/p>\n<p>(Click to select)<\/p>\n<p>Bal.<\/p>\n<p>\u00a0<\/p>\n<p>\u00a0<\/p>\n<p>Work in Process &#8211; Bottling Department<\/p>\n<p>Bal.\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 (Click to select)<\/p>\n<p>(Click to select)<\/p>\n<p>(Click to select)<\/p>\n<p>(Click to select)<\/p>\n<p>(Click to select)<\/p>\n<p>Bal.<\/p>\n<p>\u00a0<\/p>\n<p>\u00a0<\/p>\n<p>Finished Goods<\/p>\n<p>Bal.\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 (Click to select)<\/p>\n<p>(Click to select) <br \/>Bal.<\/p>\n<p>\u00a0<\/p>\n<p>\u00a0<\/p>\n<p>Manufacturing Overhead<\/p>\n<p>(Click to select)\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 (Click to select)<\/p>\n<p>Bal.<\/p>\n<p>\u00a0<\/p>\n<p>\u00a0<\/p>\n<p>Accounts Payable<br \/>\u00a0<br \/>\u00a0<br \/>(Click to select)<\/p>\n<p>Salaries and Wages Payable<br \/>\u00a0<br \/>\u00a0<br \/>(Click to select)<\/p>\n<p>Sales<br \/>\u00a0<br \/>\u00a0<br \/>(Click to select)<\/p>\n<p>Cost of Goods Sold<br \/>\u00a0<\/p>\n<p>(Click to select)\u00a0<\/p>\n<p>4.<\/p>\n<p>The following information pertains to Yap Company&#8217;s Grinding Department for the month of April:<\/p>\n<p>\u00a0<br \/>Units\u00a0Materials<br \/>Costs<br \/>Beginning work in process\u00a050,000\u00a0$13,200<br \/>Started in April\u00a096,000\u00a0$118,800<br \/>Units completed and transferred out\u00a0112,500\u00a0<br \/>Ending work in process\u00a033,500\u00a0<\/p>\n<p>All materials are added at the beginning of the process. Using the weighted-average method, the cost per equivalent unit for materials is closest to:<\/p>\n<p>$1.38<\/p>\n<p>$1.02<\/p>\n<p>$0.90<\/p>\n<p>5.<\/p>\n<p>Jaderston Corporation uses the weighted-average method in its process costing system. Data concerning the first processing department for the most recent month are listed below:<\/p>\n<p>Beginning work in process inventory:\u00a0<br \/>Units in beginning work in process inventory\u00a0200<br \/>Materials costs\u00a0$2,500<br \/>Conversion costs\u00a0$2,800<br \/>Percent complete with respect to materials\u00a060%<br \/>Percent complete with respect to conversion\u00a035%<br \/>Units started into production during the month\u00a06,900<br \/>Units transferred to the next department during the month\u00a06,400<br \/>Materials costs added during the month\u00a0$136,300<br \/>Conversion costs added during the month\u00a0$243,400<br \/>Ending work in process inventory:\u00a0<br \/>Units in ending work in process inventory\u00a0700<br \/>Percent complete with respect to materials\u00a055%<br \/>Percent complete with respect to conversion\u00a050%<\/p>\n<p>Note: Your answers may differ from those offered below due to rounding error. In all cases, select the answer that is the closest to the answer you computed. To reduce rounding error, carry out all computations to at least two decimal places.<\/p>\n<p>The cost per equivalent unit for materials for the month in the first processing department is closest to:<\/p>\n<p>$19.55<\/p>\n<p>$20.12<\/p>\n<p>$20.46<\/p>\n<p>$19.05<\/p>\n<p>6.<\/p>\n<p>In January, one of the processing departments at Seidl Corporation had ending work in process inventory of<br \/>$43,000. During the month, $133,000 of costs were added to production and the cost of units transferred out from the department was $104,000.<\/p>\n<p>In the department&#8217;s cost reconciliation report for January, the cost of beginning work in process inventory for the department would be:<\/p>\n<p>$61,000<\/p>\n<p>$14,000<\/p>\n<p>$90,000<\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>Chapter 3 1.Rustafson Corporation is a diversified manufacturer of consumer goods. The company&#8217;s activity-based costing system has the following seven activity cost pools: Activity Cost Pool\u00a0EstimatedOverhead Cost\u00a0Expected ActivityLabor-related\u00a0$ 51,000\u00a08,000 direct labor-hoursMachine-related\u00a0$ 14,900\u00a020,525 machine-hoursMachine setups\u00a0$ 44,000\u00a0500 setupsProduction orders\u00a0$ 18,000\u00a0400 ordersProduct testing\u00a0$ 50,000\u00a01,700 testsPackaging\u00a0$ 67,125\u00a05,200 packagesGeneral factory\u00a0$101,125\u00a08,000 direct labor-hours \u00a0 \u00a0 \u00a0 \u00a0 Required:1.\u00a0 Compute the activity [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[31],"tags":[],"class_list":["post-6729","post","type-post","status-publish","format-standard","hentry","category-homework-help"],"_links":{"self":[{"href":"https:\/\/assignmenttutors.net\/blog\/wp-json\/wp\/v2\/posts\/6729","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/assignmenttutors.net\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/assignmenttutors.net\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/assignmenttutors.net\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/assignmenttutors.net\/blog\/wp-json\/wp\/v2\/comments?post=6729"}],"version-history":[{"count":0,"href":"https:\/\/assignmenttutors.net\/blog\/wp-json\/wp\/v2\/posts\/6729\/revisions"}],"wp:attachment":[{"href":"https:\/\/assignmenttutors.net\/blog\/wp-json\/wp\/v2\/media?parent=6729"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/assignmenttutors.net\/blog\/wp-json\/wp\/v2\/categories?post=6729"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/assignmenttutors.net\/blog\/wp-json\/wp\/v2\/tags?post=6729"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}