Cost of Production Report and Journal Entries; Average Cost. Meninquez Cabinet Company manufactures a single model...

Transcribed Image Text:

Cost of Production Report and Journal Entries; Average Cost. Meninquez Cabinet Company manufactures a single model of a commercial prefabricated wooden cabinet. The company uses a process cost system with an average cost flow assumption. It main- tains a separate work in process account for each of its two producing departments, Cutting and Assembly. The basic cabinet components are cut out of wood in the Cutting Department and then transferred to the Assembly Department, where they are put together with the addition of hinges and handles purchased from outside vendors. Data related to manufacturing operations in August are: Units in beginning inventory.. Cutting 200 Assembly 250 Units started in process in Cutting Department this period. Units transferred from Cutting to Assembly this period........ Units transferred from Assembly to Finished 600 650 650 Goods this period.. 800 Units in ending inventory: Cutting Department (90% materials and 60% conversion cost). 150 Assembly Department (40% materials and 20% conversion cost).. 100 Cutting Assembly Cost in beginning inventory: Cost from preceding department Materials $17,410 $5,365 3,451 Labor. 530 Factory overhead. 3,611 795 3,611 Cost added during the current period: Materials Labor Factory overhead Required: Cutting Assembly $26,035 $14,273 8,350 12,525 20,989 20,989 (1) Prepare a cost of production report for each department for August. (2) Prepare the appropriate general journal entries to record the charge to the producing departments for the costs incurred during August and to record the transfer of units from Cutting to Assembly and from Assembly to Finished Goods Inventory. Cost of Production Report and Journal Entries; Average Cost. Meninquez Cabinet Company manufactures a single model of a commercial prefabricated wooden cabinet. The company uses a process cost system with an average cost flow assumption. It main- tains a separate work in process account for each of its two producing departments, Cutting and Assembly. The basic cabinet components are cut out of wood in the Cutting Department and then transferred to the Assembly Department, where they are put together with the addition of hinges and handles purchased from outside vendors. Data related to manufacturing operations in August are: Units in beginning inventory.. Cutting 200 Assembly 250 Units started in process in Cutting Department this period. Units transferred from Cutting to Assembly this period........ Units transferred from Assembly to Finished 600 650 650 Goods this period.. 800 Units in ending inventory: Cutting Department (90% materials and 60% conversion cost). 150 Assembly Department (40% materials and 20% conversion cost).. 100 Cutting Assembly Cost in beginning inventory: Cost from preceding department Materials $17,410 $5,365 3,451 Labor. 530 Factory overhead. 3,611 795 3,611 Cost added during the current period: Materials Labor Factory overhead Required: Cutting Assembly $26,035 $14,273 8,350 12,525 20,989 20,989 (1) Prepare a cost of production report for each department for August. (2) Prepare the appropriate general journal entries to record the charge to the producing departments for the costs incurred during August and to record the transfer of units from Cutting to Assembly and from Assembly to Finished Goods Inventory.

Answer rating: 100% (QA)

1 Cost of Production Report Cutting Department Cost Category Total Cost Cost per Equivalent Unit Beg... View the full answer