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

View Hi!!t!l


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

@![r”*’*’d -l.l

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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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Assig nrnent Print Mew


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

ri4 Itis

3. Used lli’n,5,000 of indirect labor. {Smit tF”re **$o’si$n ir”l yeiur resp*i’lse”}

General Joumal

EIrl l-.lrr-r:torypayroll j-l

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Workgher*1[ ]ri:’.”.’:7-‘;i.;;:-7;:;;;t

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Problem 16-1 A Production cost flow and measurement: journal enliies L.A. Pl , P2, P3, P4 [fhe foilowing Inform ation ap plies to ffi e guestrbns disp layed b elow]

Edison Company manufacturcs wool blankets and accounts for produc: costs using process costing. The following infomation is available regarding its May inventories.

Beginning . Ending

lnr,entory lnlentory Raw materials inventory $ 57,000 $ 49,000 Goods in pnocess inrentory 425,000 548,500 Finished gocds inwntory 636,000 333,001

The following additional information describes the company’s production i:rctivities for May.


Debit Credit 62,000


Debit Credit 15,000

1 5,000

Other orrerhrerad cost (Other Accounts credited) 99,000 Materials usied

$ 300,000 1,600,000

$ 195,500 70,000

$ 707,000 893,000


$ 3,000,000


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Probtem t6-1A P ;;;;;;,*-;;; enfnes l”O. Pf, P2, F3, F4





tneasuremenf,’ jo

Require the cost of pnrducts transferred ful.n production to

youfl !sp*nse.)

of products transfened

the cost of goods sold- {Omit the “gnn sign in your re rl


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Prabtemriti il

ii ‘l




&-t A Fart 1


{ (b}

goods. {Omit the *’$” si$n

– 4irecl

{Smit the “$” sisn in your



goods soldof

Prablem I tA Fart 2 2(a) P l joumal entry dated May 31 to rccord the raw materials



General Joumal

2(b) Prepa,re joumal respqnse.)

entry dated May 31 to record the direct materi usage. {Srnit the nn$”


i*”- -” ‘–“–

-..’..”‘: ..:..’….:

dgn in your

n ray ler

General Joumal Credit

,-.””. –. -,…..-. -. – – -, .”, .,.,,:

ir y*ur2(c) Prepqrp journal entry dated May 31 to record the indirect materfrp joumal .espdtftn.)

General Joumal ..-..,



: –

“: -__;

it the “$” sign in your response.)

Debit Credit i-*-‘:- *’***-l

..'” .

{Ornit tha “$” sign in your

irb journal entry dated May 31 to record the payroll costs. { lil

General Joumal


‘……. joumal entry dated May 31


joumal entry dated May 3’t


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Geneml Joumal

rccord the direct

to record the indireet,recl qd.ncg rzur hi { ll.uonr/frrn.tpx


General Joumal

F olerhead I

General Joumal

Factory owrhead l-

General Joumal

Finlshed goods inrentory i –

Assi g nnent Print View

Debit Credit

Debit Credit

Debit Credit

finishe ,C goods. {*rxtit t$rs u’$’o x$gx’r im y*isn

Debit Credit

Factory payroll i-

2(g)PrepaLre joumal entry dated May 31 to record the other orerhei:rd costs. {Omit the “$” sign in your respc,n$e.)


Mi;rr1 31


Malr 31


Mar’y |ll

Other accounts i .

2(h)Prepare joumal entry dated May 31 to record the orerhead;:rpplied. {omit the “$” sign in your response.)

Date General Joumal Debit Credit Mary’,31 Goods in process inrentory i –

Factory o\,erhead ; ‘.

2(i) Prepare joumal entry dated May 31 to record the goods transfu’red fiom production to finished goods. (Omlt the “$” sign in your response.)

Goods in process inrentorv iv

2(i) Prepiar,cr joumal entry dated May 31 to record the sale of respull”r**e.)

Dirle General Joumal tr13’,1 1i3,1 Accounts r€cei\a:ble i-

Finished goods inrentorv i r


Pr*blem f $,i;i:,4 Part I Required: 1(a) Detenrniine the equiwlent units of production with respect to direct larbor.

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