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Cornerstones of Cost Management 2nd Edition by Don Hansen ,Maryanne Mowen
النسخة 2الرقم المعياري الدولي: 978-1111824402Cornerstones of Cost Management 2nd Edition by Don Hansen ,Maryanne Mowen
النسخة 2الرقم المعياري الدولي: 978-1111824402 تمرين 10
Cost Flows
Lamont Company produced 80,000 machine parts for diesel engines. There were no beginning or ending work-in-process inventories in any department. Lamont incurred the following costs for May:
Required:
1. Calculate the costs transferred out of each department.
2. Prepare the journal entries corresponding to these transfers. Also, prepare the journal entry for Grinding that reflects the costs added to the transferred-in goods received from Molding.
3. What if the Grinding Department had an ending WIP of $12,000? Calculate the cost transferred out and provide the journal entry that would reflect this transfer. What is the effect on finished goods calculated in Requirement 1, assuming the other two departments have no ending WIP?
Lamont Company produced 80,000 machine parts for diesel engines. There were no beginning or ending work-in-process inventories in any department. Lamont incurred the following costs for May:
Required:
1. Calculate the costs transferred out of each department.
2. Prepare the journal entries corresponding to these transfers. Also, prepare the journal entry for Grinding that reflects the costs added to the transferred-in goods received from Molding.
3. What if the Grinding Department had an ending WIP of $12,000? Calculate the cost transferred out and provide the journal entry that would reflect this transfer. What is the effect on finished goods calculated in Requirement 1, assuming the other two departments have no ending WIP?
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Cornerstones of Cost Management 2nd Edition by Don Hansen ,Maryanne Mowen
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