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California Cookies, Incorporated produces cookies. The process begins by placing direct materials (flour, sugar, eggs, chocolate chips, etc.) into the Mixing Department. All materials are
California Cookies, Incorporated produces cookies. The process begins by placing direct materials (flour, sugar, eggs, chocolate chips, etc.) into the Mixing Department. All materials are placed into production at the beginning of the mixing process. After mixing, the cookie dough is then transferred to the Baking Department, and then to the Packaging Department where the finished product -a 12 oz. package of cookies - is completed. The balance in the account Work in Process - Packaging Department was as follows on April 1: Work in Process - Packaging Department (3.800 units, 4/5 completed) $18,400 The following costs were charged to Work in Process - Packaging Department during April: Direct materials transferred from Baking Department: 23.500 units at $3.50 a unit $82,250 Direct labor 38,400 Factory overhead 28,530 During April, 24,700 units of cookies were completed. Work in Process on April 30" was as follows: Work in Process - Packaging Department: 2,600 units, 1/4 completed The following costs were charged to Work in Process - Packaging Department during May Direct materials transferred from Baking Department: 25,700 units at $3.75 a unit Direct labor Factory overhead $96,375 40,900 32,320 During May, 24,300 units of cookies were completed. Work in Process on May 31" was as follows: Work in Process - Packaging Department: 4,000 units, 5/8 completed Instructions: 1.) Prepare a cost of production report for the Packaging Department for April. 2.) Prepare a cost of production report for the Packaging Department for May. 3.) Post all appropriate entries to the Work in Process - Packaging Department ledger card
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