1 )Entries for Flow of Factory Costs for Process Cost System Sweeties, Inc., man
ID: 2401267 • Letter: 1
Question
1)Entries for Flow of Factory Costs for Process Cost System
Sweeties, Inc., manufactures a sugar product by a continuous process, involving three production departments—Refining, Sifting, and Packing. Assume that records indicate that direct materials, direct labor, and applied factory overhead for the first department, Refining, were $489,600, $171,400, and $112,600, respectively. Also, work in process in the Refining Department at the beginning of the period totaled $27,400, and work in process at the end of the period totaled $33,800.
a. Journalize the entries to record the flow of costs into the Refining Department during the period for (1) direct materials, (2) direct labor, and (3) factory overhead.
b. Journalize the entry to record the transfer of production costs to the second department, Sifting.
2) The chief cost accountant for Fizzy Fruit Beverage Co. estimated that total factory overhead cost for the Blending Department for the coming fiscal year beginning April 1 would be $160,000, and total direct labor costs would be $100,000. During April, the actual direct labor cost totaled $12,500, and factory overhead cost incurred totaled $20,350.
Required:
Does the balance in part (c) represent over- or underapplied factory overhead?
3) Equivalent Units of Production and Related Costs
The charges to Work in Process—Assembly Department for a period, together with information concerning production, are as follows. All direct materials are placed in process at the beginning of production.
Determine the following:
a. The number of units in work in process inventory at the end of the period.
units
Feedback
Units in ending work in process represent units that have been started in the department but have not been completed, and therefore have not been transferred out to finished goods.
Learning Objective 2.
b. Equivalent units of production for direct materials and conversion. If an amount is zero or a blank, enter in "0".
Feedback
When are materials added in the process? How does that affect the number of equivalent units in beginning work in process, units that have been started and completed and units in ending work in process? For units to be completed they have to be complete with respect to both materials and conversion.
Learning Objective 2.
c. Costs per equivalent unit for direct materials and conversion.
d. Cost of the units started and completed during the period.
$
The Cutting Department of Karachi Carpet Company provides the following data for January 2016. Assume that all materials are added at the beginning of the process.
1. 2. 3.Explanation / Answer
1)
Note:- work in process-Sifting Department =Opening work in process-Refining Department + cost incurred during the year - Ending work in process-Refining Department
= $27,400 + 773600 - 33,800
= $767200
Date Accounts title Dr Cr a work in process-Refining Department 489,600 To Material 489,600 2 work in process-Refining Department $171,400 To wages payable $171,400 3 work in process-Refining Department $112,600 To Factory overhead $112,600 b work in process-Sifting Department 767200 To work in process-Refining Department 767200Note:- work in process-Sifting Department =Opening work in process-Refining Department + cost incurred during the year - Ending work in process-Refining Department
= $27,400 + 773600 - 33,800
= $767200
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