ACCOUNTING

Problem 16-1A Production cost flow and measurement; journal entries L.O. P1, P2, P3, P4

[The following information applies to the questions displayed below.]

Edison Company manufactures wool blankets and accounts for product costs using process costing. The following information is available regarding its May inventories.

 

 

6. Problem 16-1A Part 1

 

Required:
1(a) Compute the cost of products transferred from production to finished goods. (Omit the “$” sign in your response.)

 

1(b) Compute the cost of goods sold. (Omit the “$” sign in your response.)

 

 

7.Problem 16-1A Part 2

 

2(a) Prepare journal entry dated May 31 to record the raw materials purchases. (Omit the “$” sign in your response.)

2(b) Prepare journal entry dated May 31 to record the direct materials usage. (Omit the “$” sign in your response.)
2(c) Prepare journal entry dated May 31 to record the indirect materials usage. (Omit the “$” sign in your response.)

 

2(d) Prepare journal entry dated May 31 to record the payroll costs. (Omit the “$” sign in your response.)

 

2(e) Prepare journal entry dated May 31 to record the direct labor costs. (Omit the “$” sign in your response.)

 

2(f) Prepare journal entry dated May 31 to record the indirect labor costs. (Omit the “$” sign in your response.)

 

2(g) Prepare journal entry dated May 31 to record the other overhead costs. (Omit the “$” sign in your response.)

 

2(h) Prepare journal entry dated May 31 to record the overhead applied. (Omit the “$” sign in your response.)

 

2(i) Prepare journal entry dated May 31 to record the goods transferred from production to finished goods.(Omit the “$” sign in your response.)

 

2(j) Prepare journal entry dated May 31 to record the sale of finished goods. (Omit the “$” sign in your response.)

 

Problem 16-2A Cost per equivalent unit; costs assigned to products L.O. C2, C3

 

[The following information applies to the questions displayed below.]

 

Fairfax Company uses weighted-average process costing to account for its production costs. Direct labor is added evenly throughout the process. Direct materials are added at the beginning of the process. During September, the company transferred 735,000 units of product to finished goods. At the end of September, the goods in process inventory consists of 207,000 units that are 90% complete with respect to labor. Beginning inventory had $244,920 of direct materials and $69,098 of direct labor cost. The direct labor cost added in September is $1,312,852, and the direct materials cost added is $1,639,080.

 

 

8.Problem 16-2A Part 1

 

Required:
1(a) Determine the equivalent units of production with respect to direct labor.

 

1(b) Determine the equivalent units of production with respect to direct materials.

 

9. Problem 16-2A Part 2

 

2. Compute both the direct labor cost and the direct materials cost per equivalent unit. (Round your answers to 2 decimal place. Omit the “$” sign in your response.)

 

10. Problem 16-2A Part 3

 

3(a) Compute both direct labor cost and direct materials cost assigned to units completed and transferred out. (Round your per unit costs to 2 decimal places and final answers to the nearest dollar amount.)

 

3(b) Compute both direct labor cost and direct materials cost assigned to ending goods in process inventory. (Round your per unit costs to 2 decimal places and final answers to the nearest dollar amount.)

 

 

 

 

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