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BrightCoat House Paints Inc. manufactures high - quality interior emulsion paint, which it packages in five - liter containers. The company operates two major production
BrightCoat House Paints Inc. manufactures highquality interior emulsion paint, which it packages in fiveliter containers. The company operates two major production departmentsMixing and Packaging. The standard white paint, which serves as a foundation for all the company's paint varieties, is formulated from raw materials in the Mixing Department. In the Packaging Department, color pigments are added to the base white paint, the colored paint is then filled into fiveliter containers, and these containers are labeled and prepared for distribution. The operational data for BrightCoat House Paints Inc. for the month of May are as follows:
a Raw materials utilized in production: Mixing Department, $; and Packaging Department, $
b Direct labor costs incurred: Mixing Department, $; and Packaging Department, $
c Allocated manufacturing overhead costs: Mixing Department, $; and Packaging Department, $
d Transfer of basic white paint from the Mixing Department to the Packaging Department, $
e Transfer of readytoship paint from the Packaging Department to Finished Goods, $
Required:
Record the journal entries for transactions a through e above.
Post the journal entries from to Taccounts. The balance in the Mixing Departments Work in Process account on May was $; the beginning balance in the Packaging Departments Work in Process account was $ After posting entries to the Taccounts, calculate the ending balance in each departments Work in Process account.
Determine the cost of the ending work in process inventory for the Mixing Department for materials, labor, overhead, and total for May. Also, calculate the cost of the completed units transferred to the next department for materials, labor, overhead, and total for May. Additional information for production in the Mixing Department during May is provided below:
Production data:
Units liters in process, May :
materials complete; labor and overhead complete $
Units liters started into production during May $
Units liters completed and transferred to the Packaging Department $
Units liters in process, May :
materials complete; labor and overhead complete $
Cost data:
Work in process inventory, May :
Materials $
Labor $
Overhead $
Total cost of work in process inventory $
Cost added during May:
Materials $
Labor $
Overhead $
Total cost added during May $
Prepare a cost reconciliation report for May.
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