Cost Summary for Mitchell Manufacturing Assignment
Following is a partial process cost summary for Mitchell Manufacturing's Canning Department.
| Equivalent Units of Production | Direct Materials | Conversion | |||||||||
| Units Completed and transferred out | 40,000 | 18,000 | |||||||||
| Units in Ending Work in Process: | |||||||||||
| Direct Materials (18,000 * 100%) | 18,000 | ||||||||||
| Conversion (18,000 * 60%) | 10,800 | ||||||||||
| Equivalent Units of Production | 58,000 | 50,800 | |||||||||
| Cost per Equivalent Unit | |||||||||||
| Costs of beginning work in process | $ | 42,300 | $ | 62,200 | |||||||
| Costs incurred this period | 141,700 | 190,600 | |||||||||
| Total costs | $ | 184,000 | $ | 252,800 | |||||||
| Cost per equivalent unit | $ | 3.17 | per EUP | $ | 4.98 | per EUP | |||||
If the units completed were transferred to the Labeling Department, what is the appropriate journal entry to transfer the direct materials?
22. Dazzle, Inc. produces beads for jewelry making use. The following information summarizes production operations for June. The journal entry to record June production activities for direct labor usage is:
| Direct materials used | $ | 96,000 | |
| Direct labor used | 169,000 | ||
| Predetermined overhead rate (based on direct labor) | 160 | % | |
| Goods transferred to finished goods | 441,000 | ||
| Cost of goods sold | 453,000 | ||
| Credit sales | 819,000 |
23. Sparky Corporation uses the FIFO method of process costing. The following information is available for February in its Molding Department:
Units:
Beginning Inventory: 29,000 units, 100% complete as to materials and 60% complete as to conversion.
Units started and completed: 114,000.
Units completed and transferred out: 143,000.
Ending Inventory: 32,000 units, 100% complete as to materials and 25% complete as to conversion.
Costs:
Costs in beginning Work in Process – Direct Materials: $47,000.
Costs in beginning Work in Process – Conversion: $52,850.
Costs incurred in February – Direct Materials: $320,650.
Costs incurred in February – Conversion: $603,150.
Calculate the cost per equivalent unit of conversion.
24. Wilturner Company incurs $87,000 of labor-related directly to the product in the Assembly Department, $36,000 of labor not directly related to the product but related to the Assembly Department as a whole, and $23,000 of labor for services that help production in both the Assembly and Finishing departments. The journal entries to record the labor would include:
25. Luker Corporation uses a process costing system. The company had $167,500 of beginning Finished Goods Inventory on October 1. It transferred in $844,000. of units completed during the period. The ending Finished Goods Inventory balance on October 31 was $165,200. The entry to account for the cost of goods sold in October is:
11.
Minstrel Manufacturing uses a job-order costing system. During one month, Minstrel purchased $193,000 of raw materials on credit; issued materials to the production of $210,000 of which $15,000 were indirect. Minstrel incurred a factory payroll of $154,000, of which $25,000 was indirect labor. Minstrel uses a predetermined overhead rate of 150% of direct labor cost. The total manufacturing costs added during the period are: .
