Flow of costs through Work in Process Inventory (Learning Objective 1) As shown in Exhibits 4-1 and
Question:
Flow of costs through Work in Process Inventory (Learning Objective 1)
As shown in Exhibits 4-1 and 4-2, Jelly Belly produces jelly beans in three sequential processing departments: Centers, Shells, and Packaging. Assume that the Shells pro¬ cessing department began September with $18,340 of unfinished jelly bean centers. During September, the Shells process used $42,600 of direct materials, used $12,130 of direct labor, and was allocated $17,260 of manufacturing overhead. In addition,
$126,400 was transferred out of the Centers processing department during the month and $196,420 was transferred out of the Shells processing department during the month. These transfers represent the cost of the jelly beans transferred from one process to another.
1. Prepare a T-account for the Work in Process Inventory—Shells showing all activity that took place in the account during September.
2. What is the ending balance in the Work in Process Inventory—Shells on September 30? What does this figure represent?
Step by Step Answer:
Managerial Accounting
ISBN: 9780138129712
1st Edition
Authors: Linda Smith Bamber, Karen Wilken Braun, Jr. Harrison, Walter T.