Compute the annual dollar changes and percent changes for each of the following accounts

Compute the annual dollar changes and percent changes for each of the following accounts. (Round percent change to one decimal place.)

 
 

	2015				2014
Short-term investments		$	377,232			$	236,026
Accounts receivable			99,828				103,326
Notes payable			0				90,624

The following information for Tide Corporation:

($ thousands)	2015				2014
Net sales		$	803,338			$	454,951
Cost of goods sold			394,621				135,683

   
 

Determine the 2014 and 2015 common-size percents for cost of goods sold using net sales as the base. (Enter your answers in thousands.)

The Fields Company has two manufacturing departments, forming and painting

The Fields Company has two manufacturing departments, forming and painting. The company uses the weighted-average method of process costing. At the beginning of the month, the forming department has 29,500 units in inventory, 80% complete as to materials and 20% complete as to conversion costs. The beginning inventory cost of $69,100 consisted of $50,200 of direct material costs and $18,900 of conversion cost.

During the month, the forming department started 390,000 units. At the end of the month, the forming department had 39,000 units in ending inventory, 80% complete as to materials and 30% complete as to conversion. Units completed in the forming department are transferred to the painting department.

Cost information for the forming department is as follows:

Beginning work in process inventory	$	69,100
Direct materials added during the month		1,267,240
Conversion added during the month		961,600

  

1.	Calculate the equivalent units of production for the forming department.

2.	Calculate the costs per equivalent unit of production for the forming department. (Round your answer to 2 decimal places.)

3.	Using the weighted-average method, assign costs to the forming department’s output—specifically, its units transferred to painting and its ending work in process inventory. (Round your "costs per equivalent unit" to two decimal places and use the rounded answer in further computations.)

Explanation:

1.

Equivalent Units of Production—Weighted Average	Direct Materials			Conversion
Units completed & transferred out (380,500 × 100%)		380,500			380,500
Units of ending work in process
Direct materials (39,000 × 80%)		31,200
Conversion (39,000 × 30%)					11,700
Equivalent units of production		411,700			392,200

2.

Cost per Equivalent Unit—Weighted Average	Direct Materials			Conversion
Costs of beginning work in process	$	50,200		$	18,900
Costs incurred this period		1,267,240			961,600
Total costs	$	1,317,440			980,500
÷ Equivalent units of production (from part 1)		411,700			392,200
Cost per equivalent unit of production	$	3.20	per EUP	$	2.50	per EUP

3.

Cost assignment—Weighted average
Costs of units transferred out
Direct materials (380,500 EUP × $3.20 per EUP)	$	1,217,600
Conversion (380,500 EUP × $2.50 per EUP)		951,250
Total costs transferred out			$	2,168,850
Costs of ending work in process
Direct materials (31,200 EUP × $3.20 per EUP)		99,840
Conversion costs (11,700 EUP × $2.50 per EUP)		29,250
Total costs of ending work in process				129,090
Total costs assigned			$	2,297,940

Equals costs to account for of $2,297,940, computed as $69,100 + $1,267,240 + $961,600

The production department in a process manufacturing system completed 369,000 units of product

The production department in a process manufacturing system completed 369,000 units of product and transferred them to finished goods during a recent period. Of these units, 69,000 were in process at the beginning of the period. The other 300,000 units were started and completed during the period. At period end, 32,000 units were in process.

Prepare the department’s equivalent units of production with respect to direct materials under each of three separate assumptions using the weighted average method for process costing.

 

Explanation:

1.

EUP for Materials

Goods completed (369,000 EUP × 100%) = 369,000

Ending work in process (32,000 EUP × 100%) = 32,000

2.  

EUP for Materials

Goods completed (369,000 EUP × 100%) = 369,000

Ending work in process (32,000 EUP × 75%) = 24,000

3.  

EUP for Materials

Goods completed (369,000 EUP × 100%) = 369,000

Ending work in process (32,000 EUP × 30%) = 9,600

Fast Co. produces its product through a single processing department. Direct materials are added at the start of production

Fast Co. produces its product through a single processing department. Direct materials are added at the start of production, and conversion costs are added evenly throughout the process. The company uses monthly reporting periods for its weighted-average process costing system. The Work in Process Inventory account has a balance of $90,300 as of October 1, which consisted of $18,900 of direct materials and $71,400 of conversion costs.

During the month the company incurred the following costs:

Direct materials	$162,400
Conversion	922,400

During October, the company started 146,000 units and transferred 156,000 units to finished goods. At the end of the month, the work in process inventory consisted of 22,400 units that were 80% complete with respect to conversion costs.

  

Required:

1.	Prepare the company’s process cost summary for October using the weighted-average method.(Round "Cost per EUP" to 2 decimal places.)

2.	Prepare the journal entry dated October 31 to transfer the cost of the completed units to finished goods inventory.

Victory Company uses weighted-average process costing to account for its production costs

Victory Company uses weighted-average process costing to account for its production costs. Conversion cost is added evenly throughout the process. Direct materials are added at the beginning of the process. During November, the company transferred 795,000 units of product to finished goods. At the end of November, the work in process inventory consists of 180,000 units that are 40% complete with respect to conversion. Beginning inventory had $507,000 of direct materials and $173,400 of conversion cost. The direct material cost added in November is $3,393,000, and the conversion cost added is $3,294,600. Beginning work in process consisted of 63,000 units that were 100% complete with respect to direct materials and 80% complete with respect to conversion. Of the units completed, 63,000 were from beginning work in process and 732,000 units were started and completed during the period.

Required:
1.	Determine the equivalent units of production with respect to direct materials and conversion.

Explanation:

1.

Equivalent Units of Production–Weighted Average

Equivalent Units of Production	Direct Materials	Conversion
Units completed & transferred out	795,000	795,000
Units of ending work in process
Direct materials (180,000 × 100%)	180,000
Conversion (180,000 × 40%)		72,000
Equivalent units of production	975,000	867,000

2.	Compute both the direct material cost and the conversion cost per equivalent unit.

3.	Compute the direct material cost and the conversion cost assigned to units completed and transferred out and ending work in process inventory. (Round "Cost per EUP" to 2 decimal places.)

Widmer Watercraft’s predetermined overhead rate for year 2015 is 200% of direct labor. Information on the company’s production activities

Widmer Watercraft’s predetermined overhead rate for year 2015 is 200% of direct labor. Information on the company’s production activities during May 2015 follows.

a.	Purchased raw materials on credit, $200,000.
b.	Materials requisitions record use of the following materials for the month.

Job 136	$	48,500
Job 137		33,000
Job 138		19,600
Job 139		22,600
Job 140		7,200
Total direct materials		130,900
Indirect materials		21,000
Total materials used	$	151,900

c.	Paid $16,000 cash to a computer consultant to reprogram factory equipment.
d.	Time tickets record use of the following labor for the month. These wages were paid in cash.

Job 136	$	12,200
Job 137		10,600
Job 138		37,900
Job 139		39,000
Job 140		4,000
Total direct labor		103,700
Indirect labor		25,000
Total	$	128,700

e.	Applied overhead to Jobs 136, 138, and 139.
f.	Transferred Jobs 136, 138, and 139 to Finished Goods.
g.	Sold Jobs 136 and 138 on credit at a total price of $535,000.
h.	The company incurred the following overhead costs during the month (credit Prepaid Insurance for expired factory insurance).

Depreciation of factory building	$	68,500
Depreciation of factory equipment		36,500
Expired factory insurance		11,000
Accrued property taxes payable		36,000

i.	Applied overhead at month-end to the Work in Process Inventory account (Jobs 137 and 140) using the predetermined overhead rate of 200% of direct labor cost.

Required:
1.	Prepare a job cost sheet for each job worked on during the month.

2.	Prepare journal entries to record the events and transactions a through i.

Explanation:

e.	To apply overhead to jobs: [($12,200 + $37,900 + $39,000) × 200%] = $178,200
f.	To record completion of jobs: ($85,100 + $133,300 + $139,600) = $358,000
(g)2.	To record cost of sales: ($85,100 + $133,300) = $218,400
i.	To apply overhead to jobs: [($10,600 + $4,000) × 200%] = $29,200

3.

Prepare T-accounts for each of the following general ledger accounts, each of which started the month with a zero balance: Raw Materials Inventory, Work in Process Inventory, Finished Goods Inventory, Factory Payroll, Factory Overhead, Cost of Goods Sold. Post the journal entries from Part 2 to the following T-accounts

4.	Prepare a report showing the total cost of each job in process and prove that the sum of their costs equals the Work in Process Inventory account balance. Prepare similar reports for Finished Goods Inventory and Cost of Goods Sold.

Marcelino Co.'s March 31 inventory of raw materials is $88,000. Raw materials purchases in April are $570,000

Marcelino Co.'s March 31 inventory of raw materials is $88,000. Raw materials purchases in April are $570,000, and factory payroll cost in April is $361,000. Overhead costs incurred in April are: indirect materials, $58,000; indirect labor, $25,000; factory rent, $31,000; factory utilities, $24,000; and factory equipment depreciation, $52,000. The predetermined overhead rate is 50% of direct labor cost. Job 306 is sold for $660,000 cash in April. Costs of the three jobs worked on in April follow.

	Job 306				Job 307				Job 308
Balances on March 31
Direct materials		$	28,000			$	42,000
Direct labor			24,000				18,000
Applied overhead			12,000				9,000
Costs during April
Direct materials			137,000				215,000			$	110,000
Direct labor			100,000				152,000				103,000
Applied overhead			?				?				?
Status on April 30	Finished (sold)				Finished (unsold)					In process

Required:
1.	Determine the total of each production cost incurred for April (direct labor, direct materials, and applied overhead), and the total cost assigned to each job (including the balances from March 31).

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a.	Materials purchases (on credit).
b.	Direct materials used in production.
c.	Direct labor paid and assigned to Work in Process Inventory.
d.	Indirect labor paid and assigned to Factory Overhead.
e.	Overhead costs applied to Work in Process Inventory.
f.	Actual overhead costs incurred, including indirect materials. (Factory rent and utilities are paid in cash.)
g.	Transfer of Jobs 306 and 307 to Finished Goods Inventory.
h.	Cost of goods sold for Job 306.
i.	Revenue from the sale of Job 306.
j.	Assignment of any underapplied or overapplied overhead to the Cost of Goods Sold account. (The amount is not material.)

2.	Prepare journal entries for the month of April to record the above transactions.

Explanation:

g.

Finished goods inventory ($351,000 + $512,000) = $863,000

j. Factory Overhead

Overhead applied to jobs				$	177,500
Overhead incurred
Indirect materials	$	58,000
Indirect labor		25,000
Factory rent		31,000
Factory utilities		24,000
Factory equip. depreciation.		52,000			190,000
Underapplied overhead				$	12,500

3.	Prepare a schedule of cost of goods manufactured.

4.1	Compute gross profit for April.

Gross Profit $ 296,500

4.2	Show how to present the inventories on the April 30 balance sheet.

Explanation:

4.1

Sales	$	660,000
Less: Cost of goods sold		(363,500	)
Gross Profit	$	296,500

4.2

Raw Materials Inventory

Beginning raw materials inventory	$	88,000
Purchases		570,000
Direct materials used		(462,000	)
Indirect materials used		(58,000	)
Ending raw materials inventory	$	138,000