Question: Explain the terms to account for and accounted for.
The term account for includes the amount in process at the beginning of the period plus the amount started or added during the period.
The term accounted for shows what happened to the amounts to account for. They are either still in the process or completed and transferred out.
Account for is explained as the aggregate of the amount balance in work in process at the beginning of the period and the amount introduced during the year and the amount started during the year.
The accounted for explains whether the amount introduced in production process during the year is still in process or it is completed. It also explains the amount of production process transferred to other process or finished goods.
Sea Worthy uses three processes to manufacture lifts for personal watercrafts: forming a lift’s parts from galvanized steel, assembling the lift, and testing the completed lift. The lifts are transferred to finished goods before shipment to marinas across the country. Sea Worthy’s Testing Department requires no direct materials. Conversion costs are incurred evenly throughout the testing process. Other information follows for October 2018:
Beginning work-in-process inventory
Transferred in from assembling department during the period
Completed during the period
Ending work in process inventory (40% complete for conversion work)
Beginning work in process inventory (transferred in costs, $93,400, conversion costs, $18,100)
Transferred in from the assembly department during the period
Conversion cost added during the period
The cost transferred into Finished Goods Inventory is the cost of the lifts transferred out of the Testing Department. Sea Worthy uses weighted-average process costing.
1. Prepare a production cost report for the Testing Department.
2. What is the cost per unit for lifts completed and transferred out to Finished Goods Inventory? Why would management be interested in this cost?
Carla Carpet manufactures broadloom carpet in seven processes: spinning, dyeing, plying, spooling, tufting, latexing, and shearing. In the Dyeing Department, direct materials (dye) are added at the beginning of the process. Conversion costs are incurred evenly throughout the process. Information for November 2018 follows:
Beginning work-in-process inventory
Transferred in from spinning department during November
Completed during November
Ending work in process inventory (80% complete for conversion work)
Beginning work in process inventory (transferred in costs, $4,000, Materials costs, $1,400 conversion costs, $5,300)
Transferred in from the spinning department
Material costs added during November
Coversion cost added during November (manufacturing wages, $8,725; manufacturing overhead allocated, $43,991)
1. Prepare the November production cost report for Carla’s Dyeing Department.
The company uses the weighted-average method.
2. Journalize all transactions affecting Carla’s Dyeing Department during November, including the entries that have already been posted. Assume labor costs are accrued and not yet paid.
Brian’s Frozen Pizzas uses FIFO process costing. Selected production and cost data follow for April 2018.
Units to account for:
Beginning work-in-process, March 31
Started in April
Total units to account for
Units accounted for:
Completed and transferred out during April:
From beginning work-in-process inventory
Started and completed during April
Ending work-in-process, April 30
Total units accounted for
1. Calculate the following:
a. On March 31, the Prepping Department beginning Work-in-Process Inventory was 75% complete for materials and 55% complete for conversion costs. This means that for the beginning inventory % of the materials and % of the conversion costs were added during April.
b. On April 30, the Prepping Department ending Work-in-Process Inventory was 60% complete for materials and 85% complete for conversion costs. This means that for the ending inventory % of the materials and % of the conversion costs were added during April.
2. Use the information in the table and the information in Requirement 1 to compute the equivalent units of production for direct materials and conversion costs for the Prepping Department.
94% of StudySmarter users get better grades.Sign up for free