Maurice Tutor

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Teaching Since: May 2017
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  • MCS,PHD
    Argosy University/ Phoniex University/
    Nov-2005 - Oct-2011

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  • Professor
    Phoniex University
    Oct-2001 - Nov-2016

Category > Accounting Posted 22 Jul 2017 My Price 9.00

Blanco Flour Company

Blanco Flour Company manufactures flour by a series of three processes, beginning with wheat grain being introduced in the Milling Department. From the Milling Department, the materials pass through the Sifting and Packaging departments, emerging as packaged refined flour.

The balance in the account Work in Process—Sifting Department was as follows on May 1, 2008:

Work in Process—Sifting Department (20,000 units, 80% completed):

 

Direct materials (20,000 × $1.37)

$27,400

Conversion (20,000 × 80%× $0.55)

8,800

 

$36,200

The following costs were charged to Work in Process—Sifting Department during May:

Direct materials transferred from Milling Department:

 

560,000 units at $1.40 a unit

$784,000

Direct labor

179,000

Factory overhead

101,200

During May, 568,000 units of flour were completed. Work in Process—Sifting Department on May 31 was 12,000 units, 70% completed.

Instructions

1. Prepare a cost of production report for the Sifting Department for May.

2. Journalize the entries for costs transferred from Milling to Sifting and the costs transferred from Sifting to Packaging.

3. Determine the increase or decrease in the cost per equivalent unit from April to May for direct materials and conversion costs.

4. Discuss the uses of the cost of production report and the results of part (3).

Answers

Maurice Tutor
(5)
Status NEW Posted 22 Jul 2017 11:07 PM My Price 9.00

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