Your Perfect Assignment is Just a Click Away
We Write Custom Academic Papers

100% Original, Plagiarism Free, Customized to your instructions!

glass
pen
clip
papers
heaphones

Accounting Unit 3: Production Cost Flows

Accounting Unit 3: Production Cost Flows

Use the Production Cost Flows Template linked in the resources to complete the following in your Financial and Managerial Accounting textbook:
— Problem 16-1B, page 757.
Problem 16-1B Production cost flow and measurement; journal entries  P1  P2  P3  P4
Dream Toys Company manufactures video game consoles and accounts for product costs using process costing. The company uses a single processing department. The following information is available ­regarding its June inventories.

Required
1. Compute the cost of (a) products transferred from production to finished goods and (b) goods sold.
Checkƒ (1b) Cost of goods sold, $600,500
2. Prepare journal entries dated June 30 to record the following production activities during June: (a) raw materials purchases, (b) direct materials usage, (c) indirect materials usage, (d) direct labor costs, (e) indirect labor costs, (f) payment of factory payroll, (g) other overhead costs, (h) overhead applied, (i) goods transferred from production to finished goods, and (j) sale of finished goods.

___________________________________________________________________________________

  
In this assignment, you will complete a cost accounting problem on equivalent unit costs using the weighted average method.
Use the Equivalent Unit Costs Template linked in the resources to complete the following in your Financial and Managerial Accounting textbook:
— Problem 16-2B, page 757.
Problem 16-2B Weighted average: Cost per equivalent unit; costs assigned to products 
Abraham Company uses process costing to account for its production costs. Conversion is added evenly throughout the process. Direct materials are added at the beginning of the process. During September, the production department transferred 80,000 units of product to finished goods. Beginning work in process consisted of 2,000 units that were 100% complete with respect to direct materials and 85% complete with respect to conversion. Of the units completed, 2,000 were from beginning work in process and 78,000 units were started and completed during the period. Beginning work in process had $58,000 of direct materials and $86,400 of conversion cost. At the end of September, the work in process inventory consists of 8,000 units that are 25% complete with respect to conversion. The direct materials cost added in September is $712,000, and conversion cost added is $1,980,000. The company uses the weighted-average method.
Required
1. Determine the equivalent units of production with respect to (a) conversion and (b) direct materials.
2. Compute both the conversion cost and the direct materials cost per equivalent unit.
Checkƒ (2) Conversion cost per equivalent unit, $25.20
3. Compute both conversion cost and direct materials cost assigned to (a) units completed and transferred out and (b) ending work in process inventory.
(3b) $120,400
Analysis Component
4. The company sells and ships all units to customers as soon as they are completed. Assume that an error is made in determining the percentage of completion for units in ending inventory. Instead of being 25% complete with respect to conversion, they are actually 75% complete. Write a one-page memo to the plant manager describing how this error affects its September financial statements.

Order Solution Now

Our Service Charter

1. Professional & Expert Writers: Topnotch Essay only hires the best. Our writers are specially selected and recruited, after which they undergo further training to perfect their skills for specialization purposes. Moreover, our writers are holders of masters and Ph.D. degrees. They have impressive academic records, besides being native English speakers.

2. Top Quality Papers: Our customers are always guaranteed of papers that exceed their expectations. All our writers have +5 years of experience. This implies that all papers are written by individuals who are experts in their fields. In addition, the quality team reviews all the papers before sending them to the customers.

3. Plagiarism-Free Papers: All papers provided byTopnotch Essay are written from scratch. Appropriate referencing and citation of key information are followed. Plagiarism checkers are used by the Quality assurance team and our editors just to double-check that there are no instances of plagiarism.

4. Timely Delivery: Time wasted is equivalent to a failed dedication and commitment. Topnotch Essay is known for timely delivery of any pending customer orders. Customers are well informed of the progress of their papers to ensure they keep track of what the writer is providing before the final draft is sent for grading.

5. Affordable Prices: Our prices are fairly structured to fit in all groups. Any customer willing to place their assignments with us can do so at very affordable prices. In addition, our customers enjoy regular discounts and bonuses.

6. 24/7 Customer Support: At Topnotch Essay, we have put in place a team of experts who answer to all customer inquiries promptly. The best part is the ever-availability of the team. Customers can make inquiries anytime.