1)Entries for Flow of Factory Costs for Process Cost System

Sweeties, Inc., manufactures a sugar product by a continuous process, involving three production departmentsRefining, Sifting, and Packing. Assume that records indicate that direct materials, direct labor, and applied factory overhead for the first department, Refining, were $489,600, $171,400, and $112,600, respectively. Also, work in process in the Refining Department at the beginning of the period totaled $27,400, and work in process at the end of the period totaled $33,800.

a. Journalize the entries to record the flow of costs into the Refining Department during the period for (1) direct materials, (2) direct labor, and (3) factory overhead.

1.
2.
3.

b. Journalize the entry to record the transfer of production costs to the second department, Sifting.

2) The chief cost accountant for Fizzy Fruit Beverage Co. estimated that total factory overhead cost for the Blending Department for the coming fiscal year beginning April 1 would be $160,000, and total direct labor costs would be $100,000. During April, the actual direct labor cost totaled $12,500, and factory overhead cost incurred totaled $20,350.

Required:

A.

What is the predetermined factory overhead rate based on direct labor cost?

B.

On April 30, journalize the entry to apply factory overhead to production. Refer to the Chart of Accounts for exact wording of account titles.

C.

What is the April 30 balance of the account Factory Overhead-Blending Department?

D.

Does the balance in part (c) represent over- or underapplied factory overhead?

3) Equivalent Units of Production and Related Costs

The charges to Work in ProcessAssembly Department for a period, together with information concerning production, are as follows. All direct materials are placed in process at the beginning of production.

Work in ProcessAssembly Department
Bal., 1,600 units, 35% completed	17,440	To Finished Goods, 29,600 units	?
Direct materials, 29,000 units @ $9.50	275,500
Direct labor	84,600
Factory overhead	39,258
Bal. ? units, 45% completed	?

Determine the following:

a. The number of units in work in process inventory at the end of the period. units

Feedback

Units in ending work in process represent units that have been started in the department but have not been completed, and therefore have not been transferred out to finished goods.

Learning Objective 2.

b. Equivalent units of production for direct materials and conversion. If an amount is zero or a blank, enter in "0".

Work in Process-Assembly Department
Equivalent Units of Production for Direct Materials and Conversion Costs
	Whole Units	Equivalent Units Direct Materials	Equivalent Units Conversion
Inventory in process, beginning
Started and completed
Transferred to finished goods
Inventory in process, ending
Total units

Feedback

When are materials added in the process? How does that affect the number of equivalent units in beginning work in process, units that have been started and completed and units in ending work in process? For units to be completed they have to be complete with respect to both materials and conversion.

Learning Objective 2.

c. Costs per equivalent unit for direct materials and conversion.

	Costs Per Equivalent Unit
Direct Materials	$
Conversion	$

d. Cost of the units started and completed during the period. $

4)Cost of Production Report

The Cutting Department of Karachi Carpet Company provides the following data for January 2016. Assume that all materials are added at the beginning of the process.

Work in process, January 1, 1,400 units, 75% completed				$ 22,960*
	*Direct materials (1,400 X $12.65)	$17,710
	Conversion (1,400 X 75% X $5.00)	5,250
		$22,960
Materials added during January from Weaving Department, 58,000 units				$742,400
Direct labor for January				134,550
Factory overhead for January				151,611
Goods finished during January (includes goods in process, January 1), 56,200 units
Work in process, January 31, 3,200 units, 30% completed