Jackie Corporation produces cat litter. It is produced in a ✓ Solved
Jackie Corporation produces cat litter using a single continuous process with direct materials (DM) added at the beginning. The company utilizes the weighted-average process costing method for accounting production. The production process requires constant use of facilities and equipment, along with direct labor from skilled technicians, which is uniformly distributed throughout production. In July, Jackie Corporation started with 4,000 units in beginning work in process (WIP) and initiated 10,000 new units. A total of 8,000 units were completed during the month, and WIP at the end of July was 30% complete regarding conversion costs.
The beginning WIP inventory had a total assigned cost of $2,000,000, allocated as follows: direct materials (25%), direct labor (30%), and factory overhead (45%). Additional costs incurred during July amounted to $3,000,000, distributed among direct materials (15%), direct labor (25%), and factory overhead (60%).
Your task is to prepare a schedule that reconciles the units, calculates the equivalent units of production, determines the cost per equivalent unit, and computes the cost of goods manufactured and ending work in process. Additionally, journalize the period-end inventory adjustment for Cost of Goods Manufactured. Finally, in APA format, write a summary of your experience this term in the Fundamentals of Nursing course, reflecting on your journey to becoming a Registered Nurse, particularly focusing on your class and experiences. Avoid overly pleasantries or negative critiques.
Paper For Above Instructions
Reconciliation of Units for Jackie Corporation
In order to effectively summarize Jackie Corporation's production and financial outcomes for the month of July, we'll need to create a reconciliation of units and calculate several key figures based on the weighted-average process costing method. This will illustrate how units were processed while providing insights into costs associated with direct materials, direct labor, and factory overhead.
1. Reconciliation of Units
- Beginning Work in Process (WIP): 4,000 Units
- Units Started: 10,000 Units
- Total Units To Account For: 14,000 Units
- Units Completed: 8,000 Units
- Ending WIP: 6,000 Units (14,000 - 8,000)
2. Calculation of Equivalent Units of Production (EUP)
To compute equivalent units of production, we need to consider both completed units and the work in process units. The EUP calculation for direct materials and conversion costs is as follows:
- Units Completed: 8,000 (100% Complete)
- Ending WIP: 6,000 Units at 30% completion for conversion costs
- Ending WIP Equivalent Units: 6,000 x 30% = 1,800 Units
- Direct Materials: 8,000 Complete Units x $357.14 = $2,857,120
- Direct Labor: 8,000 Complete Units x $137.76 = $1,102,080
- Factory Overhead: 8,000 Complete Units x $275.51 = $2,204,080
- Direct Materials: 6,000 x $357.14 = $2,142,840
- Conversion Costs (labor and overhead): (6,000 x 30%) x (Direct Labor Cost Per Equivalent + Factory Overhead Cost Per Equivalent) = (1,800 x $137.76 + $275.51) = $751,356.16
- Cost Accounting: A Managerial Emphasis (Horngren et al.)
- Fundamentals of Nursing (Potter & Perry)
- Managerial Accounting (Garrison et al.)
- Nursing: A Concept-Based Approach to Learning (Clifford et al.)
- Healthcare Financial Management (Gapenski & Pink)
- The Art and Science of Nursing (Keatings & Smith)
- Nursing Care Planning Made Incredibly Easy! (Hinkle)
- Principles of Economics (Mankiw)
- Understanding Financial Statements (Fraser & Ormiston)
- Essentials of Human Anatomy and Physiology (Martini & Nath)
Equivalent units for conversion costs:
This means total equivalent units for conversion costs = 8,000 (completed) + 1,800 (ending WIP) = 9,800 units.
3. Cost Per Equivalent Unit of Production
The total costs that need to be considered for the periods are:
| Cost Category | Cost | Equiv. Units | Cost Per EUP |
|---|---|---|---|
| Direct Materials | $2,000,000 (Beginning) + $3,000,000 (Incured) = $5,000,000 | 14,000 Units (all treated as 100% complete) | $5,000,000 / 14,000 = $357.14 |
| Direct Labor | $600,000 ($2,000,000 x 30%) + $750,000 ($3,000,000 x 25%) = $1,350,000 | 9,800 Units | $1,350,000 / 9,800 = $137.76 |
| Factory Overhead | $900,000 ($2,000,000 x 45%) + $1,800,000 ($3,000,000 x 60%) = $2,700,000 | 9,800 Units | $2,700,000 / 9,800 = $275.51 |
4. Calculation of Cost of Goods Manufactured and Ending WIP
Cost of Goods Manufactured (COGM) for the month includes all costs related to units that were completed.
Total Cost of Goods Manufactured = $2,857,120 + $1,102,080 + $2,204,080 = $6,163,280.
Ending Work in Process calculation will consider the ending WIP units (6,000 at 30% complete for conversion):
Ending WIP = $2,142,840 + $751,356.16 = $2,894,196.16.
5. Journalizing the Period-End Inventory Adjustment
The adjustment for Cost of Goods Manufactured can be journalized as follows:
| Debit: Cost of Goods Sold | $6,163,280 |
| Credit: Finished Goods Inventory | $6,163,280 |
Reflection on Fundamentals of Nursing Course
Throughout this term in the Fundamentals of Nursing course, my journey towards becoming a Registered Nurse has been transformative. Engaging with dedicated instructors and collaborating with peers cultivated a deep understanding of the fundamental concepts of nursing practice, patient care, and critical thinking. Evidence-based practices were emphasized across multiple topics, equipping us with tools necessary for excellent patient outcomes.
The clinical experiences provided valuable practical knowledge while enhancing my confidence in nursing skills. Challenging scenarios allowed me to apply classroom knowledge in real-life situations, reinforcing the importance of clinical competence, empathy, and professionalism. The insights gained during this educational endeavor not only solidified my passion for nursing but also prepared me for future challenges in the healthcare environment.
Conclusion
In conclusion, Jackie Corporation's production processes and costs provide a clear illustration of effective financial management strategies in a manufacturing setting. This synthesized understanding alongside my evolving nursing education represents a harmonious blend of analytical and compassionate care pivotal for success in both fields.