# p3-2b

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```					               Name:                                                                                 Date:
Instructor:                                                                             Course:
Managerial Accounting, 3rd Edition, by Weygandt, Kieso, and Kimmel
Solving Managerial Accounting Problems Using Microsoft Excel for Windows by Rex A Schildhouse
Problem P3-2B, Aquatic Company manufactures bowling balls through two processes: Molding and Packaging. In the Molding Department
urethane, rubber, plastics, and other materials are molded into bowling balls. In the Packaging Department, the balls are placed in cartons and
sent to the finished goods warehouse. Materials are entered at the beginning of each process. Labor and manufacturing overhead are incurred
uniformly throughout each process. Production and cost data for the Molding Department during June 2005 are presented below.

Production Data                  June                                           Cost Data                     June
Beginning work in process units                   0                   Materials                                         \$286,000
Units started into production                20,000                   Labor                                              114,000
Ending work in process units                  5,000                   Overhead                                           101,900
Percent complete - ending inventory             40%                   Total                                             \$501,900

Instructions:
(a) Prepare a schedule showing physical unit flow.

Physical units
Units to be accounted for
Title                                                         Amount
Title                                                         Amount
Total units                                                   Formula

Units accounted for
Title                                                         Amount
Title                                                         Amount
Total units                                                   Formula

(b) Determine the equivalent units of production for materials and conversion costs.

Equivalent units                                 Materials              Conversion Costs
Units transferred out                                         Amount                Amount
Title
Title                                                      Amount
Title                                                                            Amount
Total equivalent units                                        Formula               Formula

(c) Compute the unit costs of production.

Unit Costs
Title                                                                      Amount
Title                                                                      Amount
Title                                                                      Formula

(d) Determine the costs to be assigned to the units transferred and in process.

Costs accounted for
Title                                                                      Amount
Work in process, June 30
Title                                          Amount
Title                                          Amount                   Formula
Total costs                                                                Formula

FileName: 1844ce76-2b79-4b89-be0e-d5460de26b10.xls, Tab: Problem P3-2B, Page 1 of 5, 9/27/2012, 5:59 PM
(e) Prepare a production cost report for the Molding Department for the month of June.

AQUATIC COMPANY
Molding Department
Production Cost Report
For the Month Ended June 30, 2005
Equivalent Units
Quantities                                   Physical                       Materials                 Conversion
Units                                                    Costs
Units to be accounted for                    (Step 1)                                      (Step 2)
Title                                            Amount
Title                                            Amount
Total units                                      Formula

Units accounted for
Title                                           Amount                            Amount                Amount
Title                                           Amount                            Amount                Amount
Total units                                     Formula                           Formula               Formula

Costs                                       Materials                   Conversion Costs                Total
Unit costs (Step 3)
Title                               (a)         Amount                            Amount                 Amount
Title                               (b)         Amount                            Amount
Unit costs [(a) ÷ (b)]                          Formula                           Formula               Formula

Costs to be accounted for
Title                                                         Amount
Title                                                         Amount
Total costs                                                   Formula

Cost Reconciliation Schedule (Step 4)
Costs accounted for
Title                                                                             Amount
Work in process, June 30
Title                                                         Amount
Title                                                         Amount              Formula
Total costs                                                                       Formula

FileName: 1844ce76-2b79-4b89-be0e-d5460de26b10.xls, Tab: Problem P3-2B, Page 2 of 5, 9/27/2012, 5:59 PM
dhouse
the Molding Department
lls are placed in cartons and
esented below.

FileName: 1844ce76-2b79-4b89-be0e-d5460de26b10.xls, Tab: Problem P3-2B, Page 3 of 5, 9/27/2012, 5:59 PM
FileName: 1844ce76-2b79-4b89-be0e-d5460de26b10.xls, Tab: Problem P3-2B, Page 4 of 5, 9/27/2012, 5:59 PM
Instructions for the Microsoft Excel Templates

Detail and information on Excel is contained within the manual.

Striking the "F1" key or following the path "Windows>Excel Help" will invoke the Office Assistant
and bring up one of several help menus.

Type your name into the cell "D5". This will be copied by formula to the rest of the pages as required.

Type the due date of your problem into cell "I5". This will be copied by formula to the rest of the pages as required.

Type the instructor's name into cell "D6". This will be copied by formula to the rest of the pages as required.

Type the course identifier into cell "I6". This will be copied by formula to the rest of the pages as required.

The problem is identified for you in cell "B7".

In "DATE" cells enter the date in any of several formats and Excel will format it correctly.

If more than one page is preformatted into the problem, page breaks are preset and formulas are
set to copy the header into the remaining pages.

Place the proper account title in the cell where the word "ACCOUNT" appears on the template.

Place the amount in the cell where the word "AMOUNT" appears on the template. A formula may be placed in

Enter a number like 914 to signify units or gallons where the word "NUMBER" appears.

Write a formula into cells where the word "FORMULA" appears. In these cells, an amount calculated outside of

Place the explanation for the entry in the cell where the word "EXPLANATION" appears on the template.

Insert the account number where "ACCT #" appears on the template during posting.

Insert the journal reference where "JOURN #" appears on the template during posting.

Insert the title in the cell where "TITLE" appears on the template.

The print area is defined to fit onto 8 1/2" X 11" sheets in portrait or landscape mode as required.

The gray filled cells define the perimeter of the problem and the print area.

The problem is formatted for whole dollars with comma separations (no cents) except where required.

The display may have "Freeze Pane" invoked so column titles remain visible during data entry.

Negative values may be shown as (\$400) vice -\$400.

Enter a string like: (\$259,417 X 12 months) + (0.3651 X 5,434,631) where the word TEXT appears.

```
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