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Topics: Inventory, Costs, Cost Pages: 9 (2650 words) Published: March 12, 2013
EXERCISE 4–8 Process Costing Journal Entries [LO1]
Schneider Brot is a bread-baking company located in Aachen, Germany, near the Dutch border. The company uses a process costing system for its single product—a popular pumpernickel bread. Schneider Brot has two processing departments—Mixing and Baking. The T-accounts below show the flow of costs through the two departments in April (all amounts are in the currency euros):

Prepare journal entries showing the flow of costs through the two processing departments during April. EXERCISE 4–9 Cost Assignment; Cost Reconciliation—Weighted-Average Method [LO2, LO4, LO5] Kenton Industrial Corporation uses the weighted-average method in its process costing system. During April, the Baker Assembly Department completed its processing of 18,000 units and transferred them to the next department. The cost of beginning inventory and the costs added during April amounted to $855,000 in total. The ending inventory in April consisted of 1,500 units, which were 90% complete with respect to materials and 40% complete with respect to labor and overhead. The costs per equivalent unit for the month were as follows: | Materials| Labor| Overhead|

Cost per equivalent unit| $24.00| $7.00| $14.00|
* 1. Compute the equivalent units of materials, labor, and overhead in the ending inventory for the month. * 2. Compute the cost of ending inventory and of the units transferred to the next department for April. * 3. Prepare a cost reconciliation for April. (Note: You will not be able to break the cost to be accounted for into the cost of beginning inventory and costs added during the month.) EXERCISE 4–10 Equivalent Units—Weighted-Average Method [LO2] Societe Clemeau, a company located in Lyons, France, manufactures cement for the construction industry. Data relating to the kilograms of cement processed through the Mixing Department, the first department in the production process, are provided below for May: | Kilograms of Cement| Percent Completed|

| | Materials| Conversion|
Work in process, May 1| 80,000| 80%| 20%|
Work in process, May 31| 50,000| 40%| 10%|
Started into production during May| 300,000| | |
* 1. Compute the number of kilograms of cement completed and transferred out of the Mixing Department during May. * 2. Compute the equivalent units of production for materials and for conversion for May. EXERCISE 4–11 Equivalent Units and Cost per Equivalent Unit—Weighted-Average Method [LO2, LO3, LO4] Solex Company produces a high-quality insulation material that passes through two production processes. Data for June for the first process follow:

* 1. Assume that the company uses the weighted-average method of accounting for units and costs. Determine the equivalent units for June for the first process. * 2. Compute the costs per equivalent unit for June for the first process. * 3. Determine the total cost of ending work in process inventory and the total cost of units transferred to the next process in June. EXERCISE 4–12 Equivalent Units—Weighted-Average Method [LO2] Gulf Fisheries, Inc., processes tuna for various distributors. Two departments are involved—Cleaning and Packing. Data relating to pounds of tuna processed in the Cleaning Department during May are given below: | Pounds of Tuna| Percent Completed|

| | Materials| Labor and Overhead|
Work in process, May 1| 30,000| 100%| 55%|
Work in process, May 31| 20,000| 100%| 90%|
*Labor and overhead only.|
A total of 480,000 pounds of tuna were started into processing during May. All materials are added at the beginning of processing in the Cleaning Department. Required:
Compute the equivalent units for May for both materials and labor and overhead assuming that the company uses the weighted-average method of accounting for units. PROBLEM 4–13 Comprehensive Problem Weighted-Average Method [LO2,...
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