Osaka Corporation: Weighted average process costing
Not what you're looking for?
I need assistance with the "Units Completed and Transferred out (Cost of Goods Manufactured)".
1. Data for Osaka Corporation for the month of June 20xx are as follows:
Beginning work in process inventory: Operations for the month of June:
Units - 800 Units started- 14,000
Direct materials - 100% complete Direct materials costs - $57,400
Conversion costs - 70% complete Conversion costs - $50,122
Direct materials costs - $2,860 Conversion costs - $2,150
Ending work in process inventory:
Units - 1,500
Direct materials - 100% complete
Conversion costs - 30% complete
Assume the company uses average costing method.
Prepare a process cost report for June.
a.
Osaka Corporation
Process Cost Report: Average Costing Method
For the Month Ended June 30, 20xx
[See attachment parts 1 & 2.]
2. n'2. Plastics, Inc., manufactures a line of office desk accessories. The company's newest and most popular product is a plastic paper holder for holding the paper up while working at the computer. Production began on February 1, 20xx. Plastic is poured into molds to form the product, and the entire process takes place in the Molding Department. After the liquid plastic is poured (signifying the beginning of the process), the molds must be cooled slowly before the paper holder is separated from the mold. Statistics for 20xx are shown below.
Beginning inventory 0
Units started 77,000
Costs: Direct materials costs $246,400
Conversion costs $334,840
Units completed and transferred to the
Packaging Department 72,500
Ending work in process inventory: All direct materials were added at the beginning of the process, and the average stage of completion of these units as to conversion costs is 80 percent.
No units were lost or spoiled during the year.
a. Prepare a process cost report using the FIFO costing method for the Molding Department using five steps. Include T accounts to recap both costs and units for the Work in Process Inventory account.
b. Identify the amount to be transferred out of Work in Process Inventory and prepare the necessary entry in journal form to do so.
a. Plastics Inc. Process Cost Report (FIFO)
[See attachments parts 3 & 4]
b. Transfer $_________ to __________ and prepare the necessary journal entry in good form to make the transfer
Purchase this Solution
Solution Summary
Your tutorial for weighted average process costing is attached in Excel. Click in cells to see computations so you can see how each amount was created and you can study to learn the process. The journal entry to transfer from molding to packaging is given for you.
Solution Preview
Your tutorial for weighted average process costing is attached in ...
Education
- BSc, University of Virginia
- MSc, University of Virginia
- PhD, Georgia State University
Recent Feedback
- "hey just wanted to know if you used 0% for the risk free rate and if you didn't if you could adjust it please and thank you "
- "Thank, this is more clear to me now."
- "Awesome job! "
- "ty"
- "Great Analysis, thank you so much"
Purchase this Solution
Free BrainMass Quizzes
Cost Concepts: Analyzing Costs in Managerial Accounting
This quiz gives students the opportunity to assess their knowledge of cost concepts used in managerial accounting such as opportunity costs, marginal costs, relevant costs and the benefits and relationships that derive from them.
Income Streams
In our ever changing world, developing secondary income streams is becoming more important. This quiz provides a brief overview of income sources.
Business Ethics Awareness Strategy
This quiz is designed to assess your current ability for determining the characteristics of ethical behavior. It is essential that leaders, managers, and employees are able to distinguish between positive and negative ethical behavior. The quicker you assess a person's ethical tendency, the awareness empowers you to develop a strategy on how to interact with them.
Change and Resistance within Organizations
This quiz intended to help students understand change and resistance in organizations
IPOs
This Quiz is compiled of questions that pertain to IPOs (Initial Public Offerings)