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Process Costing Assignment 1 - EUP with answers (1)

The document outlines two problems related to process costing for manufacturing companies. Problem 1 involves completing a quantity schedule for JAG Manufacturing Company with five processing departments, while Problem 2 focuses on Spring Company, which bottles mineral water and calculates direct materials and equivalent units of production. The answers to the questions indicate that Department 1 has no direct material costs and Department 2 has 74,792 equivalent units based on conversion costs.

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Camelia Canaman
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Download as PDF, TXT or read online on Scribd
141 views

Process Costing Assignment 1 - EUP with answers (1)

The document outlines two problems related to process costing for manufacturing companies. Problem 1 involves completing a quantity schedule for JAG Manufacturing Company with five processing departments, while Problem 2 focuses on Spring Company, which bottles mineral water and calculates direct materials and equivalent units of production. The answers to the questions indicate that Department 1 has no direct material costs and Department 2 has 74,792 equivalent units based on conversion costs.

Uploaded by

Camelia Canaman
Copyright
© © All Rights Reserved
Available Formats
Download as PDF, TXT or read online on Scribd
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PROCESS COSTING

Assignment:

PROBLEM 1: (8 points)
The JAG Manufacturing Company has five processing departments. An examination of its cost of production report reveals the following incomplete data:

Answer:

Departments
Quantities 1 2 3 4 5
Units started in process 10,000.00
Units received from preceding department -0- 4,000.00 3,000.00 2,400.0000 2,100.00
Units transferred to next department 4,000.00 3,000.00 2,400.00 2,100.0000 -0-
Units transferred to finished goods -0- -0- -0- -0- 1,600.00
Ending Units in Process 6,000.00 1,000.00 600.00 300.0000 500.00

Required:
Complete the quantity schedule by replacing the letters with the correct unit amount.
Assume that the process is sequential (i.e., the output of Department 1 is the input of Department 2, etc.) and that no beginning work in process inventory
exists.

PROBLEM 2: (2 points)

Spring Company bottles mineral water. The water is filtered in department 1 and then flows to Department 2 where it is bottled.

The company's only direct material cost occurs in the bottling stage.

The quantity schedules of Spring Company are as follows:

Department 1
Units started in process 110,000.00
Units transferred to Department 2 80,000.00
Units in process, end 30,000.00
Department 2
Units received from Department 1 80,000.00
Units transferred to finished goods inventory 61,400.00
Units in process, end 18,600.00
Ending units in process in both departments are 72% complete as to conversion costs.

Question 1:
Direct materials equivalent units of production for Department 1 are:
a. -0 – c. 101,600 units
b. 80,000 units d. 110,000 units

Answer: A. -0- The company's only direct material cost occurs in the bottling stage.

Question 2:
Department 2 would have how many equivalent units of production, on the basis of a conversion cost computation?

a. 61,400 units c. 74,792 units


b. 68,929 units d. 80,000 units

Answer: C. 74,792

Units transferred to finished goods inventory 61,400.00


Units in process, end (18,600*72%) 13,392.00
Equivalent Units 74,792.00

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