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2. (38 pts.) Califomia Olive Oil Company produces olive oil through two departments: Mixing Department and Packaging Department. In Packaging Department, direct materials are added
2. (38 pts.) Califomia Olive Oil Company produces olive oil through two departments: Mixing Department and Packaging Department. In Packaging Department, direct materials are added at the end of the process, and conversion costs are added evenly throughout the process. September information is renorted as below: (all numbers are in thousands) (1) Summarize the flow of physical units using the Work in Process T-account for Packaging Department. (2 pts.) (2) Total units to account for = (1 pt.) Total units accounted for = + = (1 pt.) (3) Draw a time line for the Packaging Department. (4 pts) (4) Compute the Packaging Department equivalent units for transferred-in costs, direct materials and conversion costs separately. ( 6 pts.) (5) Compute the cost per equivalent unit for transferred-in costs, direct materials and conversion costs. ( 6 pts.) (6) How much is the unit product cost? (2 pt.) (7) Assign the costs to a. units completed and transferred out and to b. ending inventory. ( 4 pts.) (8) Post the cost information in the following T-account? ( 6 pts.) (9) Total costs to account for = (show your steps) ( 2 pts.) (10) Total costs accounted for = (show your steps) (2 pts.) (11) Prepare the journal entry to record the cost of products completed and transferred out of the Packaging Department. (2 pts.) 2. (38 pts.) Califomia Olive Oil Company produces olive oil through two departments: Mixing Department and Packaging Department. In Packaging Department, direct materials are added at the end of the process, and conversion costs are added evenly throughout the process. September information is renorted as below: (all numbers are in thousands) (1) Summarize the flow of physical units using the Work in Process T-account for Packaging Department. (2 pts.) (2) Total units to account for = (1 pt.) Total units accounted for = + = (1 pt.) (3) Draw a time line for the Packaging Department. (4 pts) (4) Compute the Packaging Department equivalent units for transferred-in costs, direct materials and conversion costs separately. ( 6 pts.) (5) Compute the cost per equivalent unit for transferred-in costs, direct materials and conversion costs. ( 6 pts.) (6) How much is the unit product cost? (2 pt.) (7) Assign the costs to a. units completed and transferred out and to b. ending inventory. ( 4 pts.) (8) Post the cost information in the following T-account? ( 6 pts.) (9) Total costs to account for = (show your steps) ( 2 pts.) (10) Total costs accounted for = (show your steps) (2 pts.) (11) Prepare the journal entry to record the cost of products completed and transferred out of the Packaging Department. (2 pts.)
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