Carol CarpetCarol Carpet

manufactures broadloom carpet in seven processes: spinning, dyeing, plying, spooling, tufting, latexing and shearing. In the Dyeing Department, direct materials (dye) are added at the beginning of the process. Conversion costs are incurred evenly throughout the process. Information for

JulyJuly

20142014

follows:

UNITS

Beginning Work-in-Process Inventory

65

rolls

Transferred in from Spinning Department during July

570

rolls

Completed during July

520

rolls

Ending Work-in-Process Inventory (80% complete for

conversion work)

115

rolls

COSTS

Beginning Work-in-Process Inventory (transferred in costs,

$3,900; materials cost, $1,625; conversion costs, $5,555)

$11,080

Transferred in from Spinning Department

19,595

Materials cost added during July

9,805

Conversion costs added during July (manufacturing

wages, $9,450; manufacturing overhead, $43,135)

52,585

.

Requirement 1. Prepare the

JulyJuly

production cost report for

CarolCarol's

Dyeing Department.

(CarolCarol

usesweighted-average process costing. Round all cost per unit amounts to the nearest cent and all other amounts to the nearest whole dollar. Abbreviation used: EUP = equivalent units of production.)

Carol Carpet
Production Cost Report - Dyeing Department
Month Ended July 30
		Equivalent Units
	Whole	Transferred	Direct	Conversion
UNITS	Units	In	Materials	Costs
Units to account for:
Total units to account for
Units accounted for:
Total units accounted for

		Transferred	Direct	Conversion	Total
COSTS		In	Materials	Costs	Costs
Costs to account for:
Total costs to account for
Cost per equivalent unit

Costs accounted for:
Total costs accounted for

Requirement 2. Journalize all transactions affecting

CarolCarol's

Dyeing Department during

JulyJuly,

including the entries that have already been posted.

Begin with a summary journal entry to record the assignment of costs transferred from the Spinning Department, direct materials, direct labor, and the allocation of manufacturing overhead to the Dyeing Department. (Prepare a single compound journal entry. Record debits first, then credits. Explanations are not required.)

Date		Accounts	Debit	Credit
Jul.	30

Prepare the journal entry to record the cost of the units completed and transferred out of the Dyeing Department.

Date		Accounts	Debit	Credit
Jul.	30