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ACC560 E3-2 E3-3 E3-5 E3-6 E3-13 P3-1A P3-6A

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E3-2 Harrelson Company manufactures pizza sauce through two production departments:
Cooking and Canning. In each process, materials and conversion costs are incurred
evenly throughout the process. For the month of April, the work in process accounts show
the following debits.

Beginning work in process 0$4,000
Materials 21,0009,000
Labor 8,5007,000
Overhead 31,50025,800
Costs transferred in 53,000

Journalize the April transactions.

E3-3 The ledger of Custer Company has the following work in process account.

Production records show that there were 400 units in the beginning inventory, 30%
complete, 1,400 units started, and 1,500 units transferred out. The beginning work
in process had materials cost of $2,040 and conversion costs of $1,550. The units in
ending inventory were 40% complete. Materials are entered at the beginning of the
painting process.

(a) How many units are in process at May 31?
(b) What is the unit materials cost for May?
(c) What is the unit conversion cost for May?
(d) What is the total cost of units transferred out in May?
(e) What is the cost of the May 31 inventory?

E3-5 In Wayne Company, materials are entered at the beginning of each process. Work in
process inventories, with the percentage of work done on conversion costs, and production
data for its Sterilizing Department in selected months during 2014 are as follows.

(a) Compute the physical units for January and May.
(b) Compute the equivalent units of production for (1) materials and (2) conversion costs
for each month.

E3-6 The Cutting Department of Cassel Company has the following production and cost
data for July.

Materials are entered at the beginning of the process. Conversion costs are incurred uniformly
during the process.

(a) Determine the equivalent units of production for (1) materials and (2) conversion costs.
(b) Compute unit costs and prepare a cost reconciliation schedule.

E3-13 The Welding Department of Thorpe Company has the following production and
manufacturing cost data for February 2014. All materials are added at the beginning of
the process.

Prepare a production cost report for the Welding Department for the month of February

P3-1A Conwell Company manufactures its product, Vitadrink, through two manufacturing
processes: Mixing and Packaging. All materials are entered at the beginning of each
process. On October 1, 2014, inventories consisted of Raw Materials $26,000, Work in
Process—Mixing $0, Work in Process—Packaging $250,000, and Finished Goods $289,000.

The beginning inventory for Packaging consisted of 10,000 units that were 50% complete
as to conversion costs and fully complete as to materials. During October, 50,000 units
were started into production in the Mixing Department and the following transactions
were completed.

1. Purchased $300,000 of raw materials on account.
2. Issued raw materials for production: Mixing $210,000 and Packaging $45,000.
3. Incurred labor costs of $258,900.
4. Used factory labor: Mixing $182,500 and Packaging $76,400.
5. Incurred $810,000 of manufacturing overhead on account.
6. Applied manufacturing overhead on the basis of $24 per machine hour. Machine hours
were 28,000 in Mixing and 6,000 in Packaging.
7. Transferred 45,000 units from Mixing to Packaging at a cost of $979,000.
8. Transferred 53,000 units from Packaging to Finished Goods at a cost of $1,315,000.
9. Sold goods costing $1,604,000 for $2,500,000 on account.

Journalize the October transactions

P3-6A Hamilton Processing Company uses a weighted-average process cost system and
manufactures a single product—a premium rug shampoo and cleaner. The manufacturing
activity for the month of October has just been completed. A partially completed production
cost report for the month of October for the Mixing and Cooking Department is
shown on the next page.

(a) Prepare a schedule that shows how the equivalent units were computed so that you
can complete the “Quantities: Units accounted for” equivalent units section shown in
the production cost report, and compute October unit costs.
(b) Complete the “Cost Reconciliation Schedule” part of the production cost report below

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