Assignment 3

Managerial Accounting (Assignment Three)
Problem 1
At Ace Company, overhead is assigned to production departments at the rate of $5

per machine hour. In July, machine hours were 3,000 in the Machining Department
and 2,400 in the Assembly Department. Prepare the entry to assign overhead
to production.
Problem 2
Boaz Company manufactures CH-21 through two processes: Mixing and

Packaging. In July, the following costs were incurred.
Mixing Packaging
Raw Materials used $ 10,000 $ 24,000
Factory Labor costs 8,000 36,000
Manufacturing Overhead costs 12,000 54,000
Units completed at a cost of $ 21,000 in the Mixing Department are transferred to

the Packaging Department. Units completed at a cost of $ 102,000 in the
Packaging Department are transferred to Finished Goods. Journalize the
assignment of these costs to the two processes and the transfer of units as
appropriate.
Problem 3
Mendle Co. has zero units of beginning work in process. During the period 12,000
units were completed, and there were 800 units of ending work in process one-fifth
complete as to conversion cost and 100% complete as to materials cost. What
were the equivalent units of production for (a) materials and (b)
conversion costs?
Problem 4
The Smelting Department of Wilkins Manufacturing Company has the following

production and cost data for November.
Production: Beginning work in process 2,000 units that are 100% complete as to
materials and 20% complete as to conversion costs; units transferred out 8,000
Deadline: One Week Page 1

units; and ending work in process 5,000 units that are 100% complete as to
materials and 40% complete as to conversion costs. Compute the equivalent
units of production for (a) materials and (b) conversion costs for the
month of November.
Problem 5
Ayala Manufacturing Company has the following production data for selected
months.
Ending
Work in Process
Beginning Units % Complete as to
Month Work in Process Transferred Out Units
Conversion Cost
January –0– 30,000 10,000 40%
March –0– 40,000 8,000 75
July –0– 40,000 16,000 25
Compute:
1. Physical units for each month.

2. Equivalent units of production for materials and conversion costs in each
month, assuming materials are entered at the beginning of the process.
Problem 6
The Blending Department of Machulak Company has the following cost and
production data for the month of April.
Costs:
Work in process, April 1
Direct materials: 100% complete $ 100,000
Conversion costs: 20% complete 70,000
Cost of work in process, April 1 $ 170,000
Costs incurred during production in April
Direct materials $ 800,000
Conversion costs 362,000

Costs incurred in April $ 1,162,000

Units transferred out totaled 14,000. Ending work in process was 1,000 units that
are 100% complete as to materials and 40% complete as to conversion costs.
Instructions:
(a) Compute the equivalent units of production for (1) materials and (2) conversion
costs for the month of April.
(b) Compute the unit costs for the month.
(c) Determine the costs to be assigned to the units transferred out and in ending
work in process.
Problem 7
Kiner Company transfers out 14,000 units and has 2,000 units of ending work in
process that are 25% complete. Materials are entered at the beginning of the
process and there is no beginning work in process. Assuming unit materials costs
of $3 and unit conversion costs of $6, what are the costs to be assigned to
units (a) transferred out and (b) in ending work in process?
Problem 8
The Welding Department of Kraiss Manufacturing Company has the following

production and manufacturing cost data for February 2011. All materials are
added at the beginning of the process.
Production Data:
Beginning work in process 15,000 units (1/10 complete)
Units transferred out 49,000
Units started 60,000
Ending work in process 26,000 units (1/5 complete)
Manufacturing Costs:
Beginning work in process
Materials $18,000
Conversion costs 14,175
Total $ 32,175
Materials 180,000
Labor 32,780

Overhead 61,445
Instructions:
Prepare a production cost report for the Welding Department for the month of
February.
Problem 9
In Gomez Company, total material costs are $32,000, and total conversion costs
are $54,000. Equivalent units of production are materials 10,000 and conversion
costs 12,000. Compute the unit costs for materials, conversion costs, and
total manufacturing costs.
Problem 10
Karlene Industries produces plastic ice cube trays in two processes: heating and
stamping. All materials are added at the beginning of the Heating Department
process. Karlene uses the weighted-average method to compute equivalent units.
On November 1, the Heating Department had in process 1,000 trays that were
70% complete. During November, it started into production 12,000 trays. On
November 30, 2011, 2,000 trays that were 60% complete were in process. The
following cost information for the Heating Department was also available.
Work in process, November 1: Costs incurred in November:

Materials $ 640 Material $3,000
Conversion costs 360 Labor 2,300
Cost of work in process, Nov. 1 $1,000 Overhead 4,050
Instructions
(a) Prepare a production cost report for the Heating Department for the month of
November 2011, using the weighted-average method.
(b) Journalize the transfer of costs to the Stamping Department.

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Managerial Accounting (Assignment Three)

At Ace Company, overhead is assigned to production departments at the rate of $5

Boaz Company manufactures CH-21 through two processes: Mixing and

Units completed at a cost of $ 21,000 in the Mixing Department are transferred to

The Smelting Department of Wilkins Manufacturing Company has the following

Deadline: One Week Page 1

1. Physical units for each month.

Deadline: One Week Page 2

Costs incurred in April $ 1,162,000

The Welding Department of Kraiss Manufacturing Company has the following

Deadline: One Week Page 3

Work in process, November 1: Costs incurred in November:

Deadline: One Week Page 4

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