Prepare a production cost report and journal entries (Learning Objectives 1, 4)

Athena Carpeting manufactures broadloom carpet in seven processes: spinning, dyeing, plying, spooling, tufting, latexing, and shearing. First, fluff nylon purchased from a company such as DuPont or Monsanto is spun into yarn that is dyed the desired color. Then, threads of the yarn are joined together, or plied, for added strength. The plied yarn is spooled for carpet making. Tufting is the process by which yarn is added to burlap backing. After the backing is latexed to hold it together and make it skid-resis¬ tant, the carpet is sheared to give it an even appearance and feel.

At March 31, before recording the transfer of costs out of the Dyeing Department, the Athena Carpeting general ledger included the following account for one of its lines of carpet:

In the Dyeing Department, direct materials (dye) are added at the beginning of the process. Conversion costs are incurred evenly throughout the process. Work in process inventory of the Dyeing Department on March 1 consisted of 110 rolls. The $11,174 beginning balance of Work in Process-Dyeing includes $4,400 of trans¬ ferred-in cost, $1,575 of direct materials cost, and $5,199 of conversion cost. During March, 525 rolls were transferred in from the Spinning Department. The Dyeing Department completed and transferred 500 rolls to the Plying Department in March, and 135 rolls were still in process on March 31. The ending inventory was 80% of the way through the dyeing process.
Requirements 1. Prepare a time line for the Dyeing Department similar to Exhibit 4-10.
2. Prepare the March production cost report for Athena’s Dyeing Department.
3. Journalize all transactions affecting the Dyeing Department during March, including the entries that have already been posted.

Transcribed Image Text:

Work in Process Inventory-Dyeing March 1 Balance 11,174 Transferred in from Spinning 21,000 Direct materials 11,760 Direct labor 8,445 Manufacturing overhead 42,900