5#3

The

Colorado Table

Company produces dining tables in a three-stage process: Sawing, Assembly, and Staining. Costs incurred in the Sawing Department during

September

are summarized as follows:

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(Click the icon to view the costs.)Direct materials (lumber) are added at the beginning of the sawing process, while conversion costs are incurred evenly throughout the process.

September

activity in the Sawing Department included sawing of

13,000

meters of lumber, which were transferred to the Assembly Department. Also, work began on

3,000

meters of lumber, which on

September

30

were

80%

of the way through the sawing process.Read the requirements

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.

Requirement 1. Fill in the time line for the Sawing Department.

Start							Complete		Complete

Requirement 2. Use the time line to help you compute the number of equivalent units and the cost per equivalent unit in the Sawing Department for

September.

Colorado Table Company
Sawing Department
Flow of Physical Units and Computation of Equivalent Units
Month Ended September 30
	Flow of	Equivalent Units
	Physical	Direct	Conversion
Flow of Production	Units	Materials	Costs
Units accounted for:
Total equivalent units

Compute the cost per equivalent unit. (For entries with a $0 balance, make sure to enter "0" in the appropriate cell(s).)

Colorado Table Company
Sawing Department
Cost per Equivalent Unit
Month Ended September 30
	Direct	Conversion
	Materials	Costs	Total
Cost per equivalent unit

Requirement 3. Show that the sum of (a) cost of goods transferred out of the Sawing Department and (b) ending "Work in Process

InventorySawing"

equals the total cost accumulated in the department during

September.

Start by completing the assignment of the costs. (Enter quantities first, then the cost per equivalent unit amounts in the same order as calculated in the preceding step.)

Assembly Department
Month Ended September 30
Assigning Costs
		Direct	Conversion
		Materials	Costs	Total
a.	Completed and transferred out:
b.	Ending work in process:
	Total costs accounted for

Complete the following table to calculate the total cost accumulated in the Sawing Department during

September.

	Total costs

Requirement 4. Journalize all transactions affecting the company's sawing process during

September,

including those already posted. Assume the wages are unpaid.

Begin by journalizing the direct materials, direct labor, and manufacturing overhead to the Sawing Department. (Record debits first, then credits. Exclude explanations from any journal entries.)

Journal Entry
Date		Accounts	Debit	Credit

Journalize the entry for the cost of the meters of lumber completed and transferred out to the Assembly Department.

Journal Entry
Date		Accounts	Debit	Credit

Data table

Dialog content starts

Work in Process InventorySawing
September 1 balance	0
Direct materials	1,952,000
Direct labor	138,000
Manufacturing overhead	185,400