P20-39B Preparing production cost report, second department with beginning a Lea
ID: 2509028 • Letter: P
Question
P20-39B Preparing production cost report, second department with beginning a Learni -VIP; journal entries Carrie Carpet manufactures broadloom carpet in seven processes: spinning, dyeing, plying, spooling, tufting, latexing, and shearing. In the Dyeing Department, direct materials (dye) are added at the beginning of the process. Conversion costs are incurred evenly throughout the process. Information for July 2016 follows: 1. Cost UNITS Beginning Work-in-Process Inventory Transferred in from Spinning Department during July Completed during July Ending Work-in-Process Inventory (80% complete for 75 rolls 560 rolls 500 rolls 135 rolls conversion work) COSTS Begimning Work-in-Process nventon transferedin costs, s4.400 materials costs, $1,575; conversion costs, $5,199) Transferred in from Spinning Department Materials costs added during July Conversion costs added during July (manufacturing wages, $8,445; manufacturing overhead allocated, $43,508) 11,174 21,000 11,760 51,953 Requirements 1. Prepare a production cost report for Carrie's Dyeing Department for July. 2. Journalize all transactions affecting Carrie's Dyeing Department during JulyExplanation / Answer
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Cost of Prduction report (weighted avg method) ProductionDepartment Equivalent Units Flow Of Units Whole units Transferred In Direct Material Conversion Cost Total cost Units to be accounted for Beginning work in process inventory 75 Transferred in frm Spinning dept 560 Total u nits to be accounted for 635 Units accounnted for: Units transferred out (b) 500 500 500 500 Ending work in progress inventory c (100% material and 80% conversion) c 135 135 135 108 Total units to be accounted for (f) 635 635 635 608 Flow of Cost Cost in the begnning work in progress inventory 4400 1575 5199 11174 Cost Transferred in from Spinning dept 21000 21000 cost added to process $11,760 $51,953 63713 Total Cost to be accounted for (e) 25400 13335 57152 95887 Cost per equivalent unit (a) e/f 40.00 21.00 94.00 Cost accounted for Cost assigned to units transferred out (a*b) 20000 10500 47000 77500 Cost in ending work in progress inventory (a*c) 5400 2835 10152 18387 Total Cost accounted for 25400 13335 57152 95887 Journal entries Dr Cr 1 Work in process-Dyeing Dept 21000 Work In process-Spining dept 21000 2 Work in process-Dyeing Dept $63,713 Raw Material Inventory $11,760 Factory labor 8445 Manufacturing Overhead 43508 (charged to work in process) 3 Work in process-Plying Dept 77500 Work in process-Dyeing Dept 77500 (transferred to next dept)Related Questions
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