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Chapter 18: Q.18-11RQ (page 1006)

Question: Explain the terms to account for and accounted for.

Short Answer

Expert verified

Answer:

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.

Step by step solution

01

Meaning of ‘Account for’

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.

02

Meaning of ‘Accounted for’

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.

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Most popular questions from this chapter

Color Explosion prepares and packages paint products. Color Explosion has two departments: Blending and Packaging. Direct materials are added at the beginning of the blending process (dyes) and at the end of the packaging process (cans). Conversion costs are added evenly throughout each process. The company uses the weighted- average method. Data from the month of May for the Blending Department are as follows:

Gallons

Beginning work-in-process inventory

0 gallons

Started in production

8,500 gallon

Completed and transferred out to packaging in may

6,500 gallon

Ending work-in-process inventory (30% of the way through the blending process)

2,000 gallon

Costs

Beginning work-in-process inventory

\(0

Costs added during May:

  • Direct materials

5,525

  • Direct labor

1,500

  • Manufacturing overhead allocated

2,547

Total costs added during May

\)9,572

Requirements

1. Compute the Blending Department’s equivalent units of production for direct

materials and for conversion costs.

2. Compute the total costs of the units (gallons)

a. completed and transferred out to the Packaging Department.

b. in the Blending Department ending Work-in-Process Inventory.

Question: What types of companies use process costing systems?

Question: Identify each costing system characteristic as job order costing or process costing.

a. One Work-in-Process Inventory account

b. Production cost reports

c. Cost accumulated by process

d. Job cost sheets

e. Manufactures homogenous products through a series of uniform steps

f. Multiple Work-in-Process Inventory accounts

g. Costs transferred at end of period

h. Manufactures batches of unique products or provides specialized services

What is the purpose of the Costs Accounted For section of the production cost report?

Brian’s Frozen Pizzas uses FIFO process costing. Selected production and cost data follow for April 2018.

Prepping department

Units to account for:

Beginning work-in-process, March 31

20,000

Started in April

45,000

Total units to account for

65,000

Units accounted for:

Completed and transferred out during April:

From beginning work-in-process inventory

20,000

Started and completed during April

30,000

Ending work-in-process, April 30

15,000

Total units accounted for

65,000

Requirements

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.
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