Pennsylvania Company produces a product that peses through a molding process and

Question

Pennsylvania Company produces a product that peses through a molding process and the an assembly process Information relaned to its marvafacturing activiis for fuly olls Beginning invereory $100,000 Beginning goods in procsss Inventory lunits Diect materials-molding n90,0o0) and overnead 1,400E Ending goods in process inventory uns Ending inventory s 70.000 Pencentage Parcentage completed-bor and averhead Beginning goode in process invenbory... Direct Inbor added Toral oonts Factory Payrol Diyuot labo-molding $ 42.000 3,000 80,000 42,000 Direct labor-assembly. 65.375 Tatal payroil eost (paid in cash.... $348000 Factory Overhead 51,400 Assembly Department indirect materiis sed Indirect iabor used..-.-.. Other overhead costs $154,800 Begineing goocds in procsss inverory Ending goods in process inventory Total factory overhead Incurred 173,750 Finished Goods Inventory s 96,400 Baginning invemtory Coat taraferred in fram assembty Cost of goeds soid Factory Overhead Applied $ 63,000 10,760 Malding (150% 0, direct labaj 506,400 $68,70o Total factory overhead applied 173,750 Required 1. Compute the equivalent units of production for the molding department for July and determine the costs per equivalent unit for direct materials, direct labor, and factory overhead. 2. Compute the cost of the units transferred from molding to assembly in July and the cost of the ending goods in process inventory for the molding department 3. Prepare summary journal entries to record the transactions and events of July for (a) raw mate- rials purchases, (b) direct materials usage, (c) indirect materials usage, (d) factory payroll costs, (e) direct labor usage, (f) indirect labor usage, (g) other overhead costs (credit Other Accounts), (h) application of overhead to the two departments,) transfer of partially completed goods from molding to assembly, ) transfer of finished goods out of assembly, and (k) the cost of goods sold

Explanation / Answer

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Working:

Whole Equivalent Units Units Material Direct labor Overhead    Inventory in process , July 1 5000 0 2000 2000    Started and completed in July 17000 17000 17000 17000    Transferred to finished goods in July 22000 17000 19000 19000    Inventory in process , July 31 8000 8000 2000 2000 Total units to be assigned costs 30000 25000 21000 21000 Costs Costs Material Direct Labor Overhead Total Costs Cost per equivalent unit:    Total costs for July in Molding Department 190000 42000 63000 295000    Total equivalent units 25000 21000 21000    Cost per equivalent unit $7.60 $2.00 $3.00

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