Exercise 1 6-15 Completing a process cost summary L.O. C3 The following partially completed process cost summary describes the May production activities of Raman Company. lts production output is sent to its warehouse for shippinll.

Er;uiwlent units of production Units ttra,nsfened out Units cif r::nding goods in process

Equiwllernt units of production

Costs per EUP Costs ofllleginning goods in process Costs inin;uned this period

Total c01il;1;s $908,800

Units ir:r Jireginning goods in process 7,0A0 Units slti:rrl.ed this period 135,000 Units cr)rnpleted and transfened out 122,000 Units in r:lnding goods in process 20,000

Prepare ilr:; process cost summary using the weighted-arerage ‘n,ethod. {ffi*u*”rd ysss” #ffis\tr*r{;; llc$ * d**$stt*$ p$mcex *maf m*msid*r the ss$T* I*”r tF ie *t*”ser *m$*u$at$*ns” *nsn&r#ils li:*’ the rte*r*S **$$*r #r*’]sqJ$’!t. #sx’*$t the o*$*n s*gffi irx ymu r respffiffis#.]

Direct Materials

1 22,000 20:000

–:::::: Direct

Materials $ 35,000


Direct F:tactory Labor ()’verhead

122,000 1,22,000

]orooo ]o’:oo 132,000 1 ,32,000

Direct l:iactory Labor (lvrerhead

$ 1,600 {; 3,200 1041000 308,000

$105,600 {,211,200

*qls* g*wr ffi{-$F ffi,e***nd qlth**n

RAMAN COMPANY Process Cost Summary

For Month Ended May 31 to ProductionCosts Ch

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Total cori;1l,s to account for

Units to account for Units s;tmfted this period +

nt tinnin,* qoods in orocess

Total unil,s to account for

E,quiralent Units of Production (EUP)

Units c;ornpleted and transfened out T

l u”itr ,;; ii

Equivaft,:nirl, units of production

Cost per EUP

lc”rts ;;i,”i

f c”qL-_iil,

Total cosrt$

lEqri*il1| Cost peir lEiiUP




Unit co::,t information



Units accounted for Compteted & transfened out z r Endina qoods in process i ”

1 22,000


Direct Materia s

Total units accounted for

Direct Labor Factory Orcrhead

Direct Material:rs


Factory Owrhead


Cost assignment and reconciliation

per EUP

Direct Labor

per EUP per EUP


uosts relnfi’Tereo oul Factory errre*r€?d f

Direct niaterials r

Direct latNrr !r

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Total trant’i’lbned out

Costs of endino ooods in orocess (Click to s,elect) ?

Direct rnaterials ?

Factorl’ rll’v{grhead s

Total enrlinrg goods in process

Total costs; accounted for

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Fxercise :tti-f 5 Cornplefirig a prCIsess cssf s{Jrnff?ary r.o. c3

Exercise ‘t6-4 Recording overhead casts L.O. P3 Prepare joumal entries to record the following production acti\,ities.

l. Paid civerhead costs (otherthan indirect materials and indirect labor) of $23,000. {Omit the “$” sign in your rcsponse,)


General Joumal

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General Journal


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Debit Credit 23,004

2. Used $58,000 of direct laborin production. Applied o\erhead at ti5% of direct laborcosts. {Omitthe “$” sign in your response,)






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Exercise ’16-11A Costs assigned to output-FlFO L.O. C4, P4 During l\pril, the production department of a process manuhcturing system completed a number of units of a produbt and transfened them to fnished goods. Of these tmnsfr;ned units, 59,000 were in process in the production department at the beginning of April and 310,000 werc started and completed in Apdl. Apdl’s beginning inrcntory units were 7oo/o comdete with respect to mal:erials and 30Yo complete with respect to labor. At the end of Aptil, 87,000 additional units were in proces$ in the production department and rvere 600/o complete with respect to materials and 600/o complete with rerspect to labor.

The production department had $1,025,000 ofdirect materials an(l $672,000 of direct labor cost charged to it during April. Also, its beginning in\€ntory included $121,840 of direct materials cost and S49,890 of direct labor.

1. UsirigtheF|FOmethod,computethedirectmaterialscostandthedirectlaborcostperequiraalentunit fcr the department. {Round your ans!\rers to 2 decimal places, Omit the “$” dgn in your reqionse.)

Direct Materials Direct Labor Cost per equiralent unit $ EUP $ EUP

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2. Using the FIFO method, assign April’s costs to the depall.ment’s output–specifically, its units transfened to finished goods and its ending goods in process in\entory. {Round your intermediate calcuiations and final ansffer to 2 decimal places Omit th€ “$” sign in your risponse.)

Totarl cost $ t ‘,


Hjorkshr-‘,rut .i;’.


Exercise 1l);134 Equiualent unr’ts computed-FlFO L.O. C4 The production department in a process manufacturing system cornpleted 196,500 units of product and frarrsfened them to finished goods during a rccent period. Of these units, 28,000 were in process at the beginning oF the period. The other 168,500 units were started and (iompleted during the period. At period end, 25,500 units were in process.

Compute the department’s equi\alent units of production with respecl: to direct materials under each of the three separate assumptions using the FIFO method for process costing.

1. All dinslt materials are added to products when processing begins.

Total IEUP

2. Dircct traterials a€ added to poducts erenly throughout the process. Beginning goods in process invenkrry was 45% comdete, and ending goods in process inr,ent<rry was 65% complete.

Total EUP

3. One+alf of direct materials is added to prcducts r,vhen the procer;s begins and the other half is added lvhen lhe process is 70% complete as to direct labor. Beginning goods in prccess inventory is 30% comdel:e as to direct labor, and ending goods in process imentor) is 55% complete as to direct labor.

Total EUP

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5 . .:::- -*i..*-,…

Exercise 16-;5 Recarding cost of completed goods L.O” P4 Prepare joumal entries to record the follo,ving actiVties.

l- Transfened completed poducts with a cost of $140,000 to fnjshed goods inr€ntory. tOmit fhe “$” sign in your response.)

General Joumal Debit Credit @iffi 14o,ooo

@ 14o,ooo

2. Sold$449,000ofproductsoncredit.Theircostis$174,000.{Omiil:he”$”srigninyourresponse.}

General Joumal

@sr Erls

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Debit Credit 449,000






Raw materiialsi purchases (on credit) Factory pay’rcltl cost (paid in cash)

Direct lndirect

Labor used Direct lndirect

Owrhead rartr:l as a percent of direct labor Sales (on creldit)

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Workshr**t Difficulty Mediun’,

^^,,.ri-* ^^ h* ^r ^^^, nrnr^r ^^^-r_ l-earning Obj*ctire: 1 S-P4 Record the transfer gffxercise’ i’t3-5 Reecrct’ing cosf of conrplefect’ goods *”*’ ”.’ ‘: L.0. p4 ‘

– – – “‘- – — -‘ r c*mpl*t*4 g**r3’; t”* Finished *osds lnventory and C**t *f G*ods Srlld”

Exercise 16-3 Recording costs of labar L.A. P2 Prepare jr:umal entries to recod the follovrting production actiVties.

1. lncunedtotal laborcostof$77,000,whichispaidincash.(Omitt:he”$”signinyourresponse.)

General Joumal Debit Credit Effi 77,ooo

77,000[-am 2. Used $62,000 of direct labor in prcduction. {Omit the “$” sign in ‘your response.}

General Journal

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