Claudia 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 November 2016 follows:
Units
Beginning Work-in-Process Inventory............ 55 rolls
Transferred in from Spinning Department during November....560 rolls
Completed during November.................490 rolls
Ending Work-in-Process Inventory
(80% complete for conversion work)...............125 rolls
Costs
Beginning Work-in-Process Inventory (transferred in costs,
$3,500; materials costs, $1,750; conversion costs, $5,420)......$ 10,670
Transferred in from Spinning Department............ 18,025
Materials costs added during November............... 13,010
Conversion costs added during November (manufacturing
wages, $8,120; manufacturing overhead allocated, $45,460)...... 53,580
Requirements
1. Prepare the November production cost report for Claudia’s Dyeing Department.
2. Journalize all transactions affecting Claudia’s Dyeing Department during November, including the entries that have already been posted.