26. Poth Corporation uses normal process costing (weighted average method), and applies manufacturing overhead at a rate of 80% of direct labor costs. Poth has two departments, Molding and Assembly (beginning work-in-process balance = $65,000 in Molding and $80,000 in Assembly).

Altogether, Poth purchased $630,000 in materials on account last period, $90,000 of which was not traceable to products. In addition to those indirect materials, Poth spent $150,000 cash on manufacturing overhead and recognized $40,000 in equipment depreciation. Poth accrued

$210,000 in direct labor costs in Molding, and $180,000 in direct labor costs in Assembly.

Poth used $300,000 worth of direct materials in Molding, $320,000 worth of direct materials in Assembly, and $85,000 in indirect materials. The process costing report at the end of the period was as follows:

Beginning raw materials inventory was $80,000, and beginning finished goods inventory was $100,000. Poth sold goods costing $950,000. Poth spent $500,000 cash on period expenses.
Make all journal entries for the period, and post them to t-accounts.

Transcribed Image Text:

Cost of goods transferred out Cost of ending work-in-process Cost of abnormal spoilage Molding Assembly $600,000 $900,000 128,000 414,000 15,000 10,000