Additional analysis 1) Journal entry needed WIP- Forming WIP-Blending 1405976 1405976 2) Total cost per unit: Blending DM 3) Units Sold Sales price/unit Henkel Industries Income Statement For the Month Ending May 31 Per unit Total Ending Units Total Cost 4) Inventory Analysis WIP Inventory- Blending WIP Inventory- Forming Finished Goods Inventory Reconciling UNITS in End FG Inv Beg FG + Made -Sold = End FG 5A) Total cost per unit DM EU Conversion EU Department Data Information about units: Units in Beginning WIP Started during month Units in Ending WIP 25,000 220,000 30,000 Production Cost Report: Blending Department - MAY FLOW OF UNITS Physical Units Units to account for: Beginning work in process 25,000 Started in production 220,000 Total units to account for 245,000 Percentage of completion: Direct materials Conversion 100% 80% 215,000 Units accounted for: Completed and transferred out Ending WIP Total units accounted for 215000 30,000 245,000 30,000 215000 24,000 239,000 245,000 Costs in Beginning WIP DM in beginning WIP Conversion costs in beginning WIP 132500 78300 Total DM Conversion Cost information for the current month: DM traced to Dept during the month DL traced to Dept during the month MOH allocated to dept during the month FLOW OF COSTS Costs to account for: Beginning work in process Costs added during month Total costs to account for 1153750 45000 617600 210800 1816350 20271501 132500 1153750 1286250 78300 662600 740900 Cost per equivalent unit 8.35 5 3 NOTE: The blue box contains the data you'll need for completing the Production Cost Report (tan box). Certain figures in the blue box must be typed in. Other figures in the blue box can be cell referenced from another worksheet (= cell address). Costs accounted for: Completed and transferred out Ending WIP Total costs accounted for 1795250 231900 2027150 1,128,750 157500 1,286,250 666,500 74400 740,900 ALL cells in the Production Cost Report (tan box) should be formulas or cell-referenced to figures in the blue box. DO NOT TYPE ANY FIGURES on the Production Cost Report or you will lose points on the assignment. Your goal is to create a Production Cost Report that can be used every month by just changing the data in the blue box. May General Journal Entries- Partial list Use a formula to find the total operating expenses for the month. $ 45,000 WIP-Blending Wages Payable (to record DL traced to the Blending Dept) $ 45,000 For Income Statement: Total Operating Expenses = $ 1,153,750 WIP-Blending Raw materials inventory (to record DM traced to the Blending Dept) $ 1,153,750 $ 617,600 WIP-Blending MOH (to record MOH allocated to the Blending Dept) $ 617,600 $ 750,000 WIP- Forming Wages Payable (to record DL traced to the Forming Dept) $ 750,000 $ 45,000 WIP-Forming Raw materials inventory (to record DM traced to the Forming Dept) $ 45,000 G $ $ WIP-Forming MOH-Forming (to record MOH allocated to the Forming Dept) 617,600 $ 617,600 n. ac $ 275,000 Salary Expense Wages Payable (to record salaries and wages of selling, general and admin.staff) $ 275,000 n. $ 25,000 Gc Rent Expense Rent Payable (to record monthly rent) $ 25,000 Gc a $ 30,000 Insurance Expense Prepaid Insurance (to record Insurance on selling, general, and admin. Building) $ 30,000 $ 3,600,000 Accounts Receivable Sales Revenue (to record the sale of 180,000 units at a price of $20 per unit) $ 3,600,000 $ 10,000 Utilities Expense Utilities Payable (to record Insurance on selling, general, and admin. Building) $ 10,000 $ 120,000 Advertising expense Accounts Payable (to record advertising expenses) $ 120,000
