A firm uses a backflush system and lean process costing (as described in the textbook). The firm values inventory using direct costing. At the beginning of April, the firm has $0 in all inventory accounts. Actual and budgeted costs are the same.
On April 4, the firm purchases 200 units of raw materials for
$25,000. It uses all 200 units of these raw materials, leaving $0
of raw materials in the warehouse at the end of April. During the
month of April, the firm incurred $14,500 of direct labor costs and
$5,000 of variable overhead costs. The firm also incurred $15,000
of fixed overhead costs.
The total number of units completed and in process is 1,000, and 50
of those units are still in process.
If you searched for the RIP account balance on May 15, what would
the search show?
(Round rates and balance amounts to the nearest cent if
necessary.)
A firm uses a backflush system and lean process costing (as described in the textbook). The firm values inventory using direct costing. At the beginning of April, the firm has $0 in all inventory acco...
NOTE: This problem had a mistake, and the corrected portions are italicized below. A firm uses a backflush system and lean process costing (as described in the textbook). The firm values inventory using direct costing. At the beginning of April, the firm has $0 in all inventory accounts. Actual and budgeted costs are the same. On April 4, the firm purchases 200 units of raw materials for $25,000. It uses all 200 units of these raw materials, leaving $0 of...
A firm uses backflush costing to assign product costs to inventory and values inventory using direct costing. All actual amounts below are equal to budgeted amounts. The firm has NO fixed overhead. Total DM: $15,000 Total DL: $10,000 Overhead: $1,000 The firm has 30 units in finished goods inventory and 50 units in process. The firm does a count of raw materials inventory and finds $350 of raw materials inventory on hand at the end of the period. Which of...
A company uses a process costing system. Its Assembly Department's beginning inventory consisted of 58,000 units, 75% complete with respect to direct labor and overhead. The direct labor beginning inventory costs were $10,900. The department completed and transferred out 107,500 units this period. The ending inventory consists of 48,000 units that are 25% complete with respect to direct labor and overhead. All direct materials are added at the beginning of the process. The department incurred direct labor costs of $44,000...
Backflush Costing Hepworth Company has implemented a JIT system and is considering the use of backflush costing. Hepworth had the following transactions for the current fiscal year: 1. Purchased raw materials on account for $640,000. 2. Placed all materials received into production. 3. Incurred actual direct labor costs of $96,000. 4. Incurred actual overhead costs of $666,600. 5. Applied conversion costs of $719,800. 6. Completed all work for the month. 7. Sold all completed work. 8. Computed the difference between...
ColorWorks' Painting Department uses a process costing system. It had a beginning Work in Process Inventory of 160 units, which had direct material costs of $17,215. During June, 8,600 units were started and costs of $213,600 were incurred for direct materials. Ending inventory consists of 250 units, which are 80% complete with respect to direct materials. What is the cost per equivalent unit for direct materials during June? Weighted average method
Backflush Costing Kenkel, Ltd, uses backfush costing to account for its monufacturing costs. The trigger points are the purchase Prepare journal entries to account for the following: For a compound transaction, if an amount box does not require an entry, leave ir blank or enter "or. ir no entry required (Hint: use a single account for raw materials and work in process) of materials, the completion of goods, and the sale of goods. an entry, leave it blank or enter...
Yehuda Corporation makes baby monitors and uses all production system and a backflush costing system. For the month of February 2018, there were no beginning finished goods, no beginning inventories of raw materials, and no beginning or ending work in process. The February standard costs per monitor were, direct materials $20.00 and conversion costs $16.00. The following data pertain to February 2018 manufacturing Raw materials and components purchased $1,020,000 Conversion costs incurred $ 780,000 Number of monitors made $ 50,000...
Backflush Costing Hepworth Company has implemented a JIT system and is considering the use of backflush costing. Hepworth had the following transactions for the current fiscal year: Purchased raw materials on account for $560,000. Placed all materials received into production. Incurred actual direct labor costs of $84,000. Incurred actual overhead costs of $583,400. Applied conversion costs of $630,200. Completed all work for the month. Sold all completed work. Computed the difference between actual and applied costs. Required: 1. Prepare the...
A firm uses the weighted average method for process costing. It has 563 units in beginning WIP inventory at 31% complete with respect to conversion costs. It starts 25,827 units during the period and has 614 units in ending inventory (these units are 46% complete with respect to conversion costs). All direct materials are added at the beginning of the process. What are total equivalent units with respect to direct materials?
Brody Corp. uses a process costing system in which direct materials are added at the beginning of the process and conversion costs are incurred uniformly throughout the process. Beginning inventory for January consisted of 1,060 units that were 50% completed. 11,500 units were started into the process during January. On January 31, the inventory consisted of 300 units that were 70% completed. What would be the equivalent units for direct materials cost using the weighted average method? Multiple Choice 11,810...