Howard Corporation has two production departments. Curing
has 12,000 units in process at the beginning of the period,
three-fourths complete. During the period, 45,000 units were
received from Crushing, 48,000 units were transferred to
Finished Goods, and 9,000 units were in process at the end of
the period, 2/3 complete. Cost information was as follows:
Cost of beginning work in process:
Cost in Crushing $21,640
Cost in Curing:
Materials 8,810
Labor 1,190
Factory overhead 2,420
Costs during the month:
Cost of goods received from Crushing $ 85,520
Cost in Curing:
Materials 53,830
Labor 10,690
Factory overhead 17,560
Total costs to be accounted for $201,660
a. Determine the unit cost for the month in Curing.
b. Determine the total cost of the products transferred to
finished goods.
c. Determine the total cost of the ending work in process
inventory.
2.Information for Chaucer, Ltd. in July for the Prep Department,
the first stage of the production cycle, is as follows:
Conversion
Materials Costs
Beginning work in process $8,100 $6,200
Costs added during July 23,400 13,400
Total costs $31,500 $19,600
Goods completed 60,000 units
Ending work in process 15,000 units
Material costs are added at the beginning of the process.
The ending work in process is two-thirds complete as to
conversion costs. How would the total costs accounted for be
distributed using the average cost method?
3.***** ***** Company processes pork into three products—
chops, bacon, and sausage. Production and selling price data
follow:
Chops 100,000 lbs. $5.00/lb.
Bacon 210,000 lbs. $4.00/lb.
Sausage 410,000 lbs. $2.00/lb.
Pork is processed in the Processing Department. From the
split-off point, bacon is smoked, sliced, and packaged in the
Bacon Department. The cost incurred for these processes was
$100,000. In addition, sausage was ground and formed into
patties in the Sausage Department after the split-off. This
process cost $60,000.
a. If joint processing costs were $1,500,000, calculate the total
cost of each product using the adjusted sales value method.
b. Prepare the journal entries to (1) record the joint processing
and movement of product out of the Processing Department
after the split off, and (2) record the additional processing
and completion of the bacon and sausage