Twinnings Corporation manufactures Scheduling Books. There are two processes: pr

Question

Twinnings Corporation manufactures Scheduling Books. There are two processes: printing and binding. The following information is given for the printing department for September.

The company uses FIFO inventory assumption.

What is the journal entry for the cost of goods sent to binding?

Units: Units, beginning work in process 40,000 (20% complete for materials, 60% complete for conversion) Started 300,000 Completed ? Units, ending work in process 50,000 (25% complete for materials, 80% complete for conversion)

Explanation / Answer

Equivalent unit :

Cost per equivalent unit of material = (220875/294500) = 0.75 per equivalent unit

Cost per equivalent unit of conversion = (30600/306000) = 0.10 per equivalent unit

Cost of goods sent to binding = (282000*.75+266000*.10) = 238100+8240 = 246340

Journal entry :

Physical unit % EUP-material % EUP-conversion Beginning wip 40000 80% 32000 40% 16000 Units started and completed 250000 100% 250000 100% 250000 Ending wip 50000 25% 12500 80% 40000 Total 340000 294500 306000

Related Questions

Navigate

• Browse (All)
• Browse T
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.