1. Prepare journal entries to record the following- a) Raw materials were issued for used in production-Moulding department $28000; firing dept 5000 b) Direct labour cost- Moulding department $18000; firing dept 5000 c) Manufacturing overheads- Moulding department $24000; firing dept 37000 d) Unfired moulded bricks were transferred from Moulding to Firing Department. According to the company's process costing system, the cost of bricks was $67000 e) The cost of finished bricks transferred from Firing department to Finished goods department was $108,000 1) Finished bricks were sold to customers. The cost of finished bricks sold was $106,000 Ansl- a. To record issuing raw materials for use in production: Work in Process Moulding Department 28,000 Work in Process-Firing Department 5,000 Raw Materials 33,000 b. To record direct labour costs incurred: Work in Process Moulding Department 18,000 Work in Process Firing Department 5,000 Wages Payable 23,000 c. To record applying manufacturing overhead: Work in Process-Moulding Department 24,000 Work in Process Firing Department 37,000 Manufacturing Overhead 61,000 d. To record transfer of unfired, molded bricks from the Molding Department to the Firing Department: Work in Process-Firing Department 67,000 Work in Process-Moulding Department 67,000 c. To record transfer of finished bricks from the Firing Department to the finished goods 108,000 108,000 Work in Process-Firing warehouse: Finished Goods Department f. To record Cost of Goods Sold: Cost of Goods Sold Finished Goods 106,000 106,000 Q2. Compute equivalent units of production with the help of following information- Percentage completion Units materials Conversion WIP, OCTOBER 1 25,000 90% 60% WIP, OCTOBER 15,000 70% 31 50% the department started 195000 units into production during the month and transferred 205000 completed units to the next department. Ans 2- Weighted-Average Method Quantity Schedule Units to be accounted for: Work in process, October 1 25,000 Units started into production 195,000 Total units 220,000 Equivalent Units Units transferred to the next department Ending work in process: Materials: 15,000 units 70% complete Conversion: 15,000 units 50% complete Equivalent units of production Materials Conversion 205,000 205,000 205,000 15,000 10,500 7,500 220,000 215.500 212.500 Q3. compute the cost for equivalent unit for materials, for labour, for overhead and in total- work in process, May 1 cost added during May materials labour overhead $28,000 $22,000 $117500 $52,000 $18500 $63600 1200 equivalent units of production 1500 units 800 Ans 3 Weighted-Average Method Costs per Equivalent Unit: Work in process, May 1 Cost added during May Total cost (a) Equivalent units of production (b) Cost per equivalent unit (a)+(b) Total Cost Materials Labour Overhead $167,500 $28,000 $22,000 $117,500 134.100 52.000 18,500 63,600 $301,600 $80,000 $40,500 $181,100 1,500 800 1,200 $53.33 $50.63 $150.92 Total cost per equivalent Unit = $53.33+ $50.63 + $150.92 $254.88 Q4. from the following given information, calculate cost per equivalent unit for materials, for labour and for overhead. also calculate total cost per equivalent whole unit materials labour overhead work in process, May 1 cost added during May $18,000 $5500 $27500 $238900 $80300 $401500 equivalent units of production 35,000 units 33,000 33,000 Ans 4 Weighted-Average Method 1. Cost of beginning work in process inventory Cost added during the period Total cost (a) Equivalent units of production (b) Materials Labor Overhead $ 18,000 $ 5,500 $27,500 238,900 80,300 401,500 $256,900 $85,800 $429,000 35,000 33,000 33,000 Cost per equivalent unit (a) + (b) $7.34 $2.60 $13.00 2. Cost per equivalent unit for materials Cost per equivalent unit for labor Cost per equivalent unit for overhead Total cost per equivalent unit $ 7.34 2.60 13.00 $22.94