# Howard Corporation

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

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