Chapter 21 Process Cost Systems Problems Series A PR 21-1A Entries for process cest system objs. 1, 3 December 31 balance, $14,120 Beauty Soap Company manufactures powdered detergent. Phosphate is placed in process in the Making Department, where it is turned into granulars. The output of Making is transferred to the Packing Department, where packaging is added at the beginning of the process. On December 1, Beauty Soap Company had the following inventories: Finished Goods Work in Process-Making Work in Process-Packing Materials $12.300 1 4780 6.230 2.700 Departmental accounts are maintained for factory overhead, which both have zero balances on December 1 Manufacturing operations for December are summarized as follows: a Materials purchased on account b. Materials requisitioned for use: Phosphate-Making Department Packaging-Packing Department Indirect materials-Making Department Indirect materials-Packing Department c. Labour used Direct labour-Making Department Direct labour-Packing Department Indirect labour-Making Department Indirect labour-Packing Department d. Amortization charged on fixed assets Making Department Packing Department e. Expired prepaid factory insurance Making Department Packing Department f. Applied factory overhead Making Department Packing Department 9 Production costs transferred from Making Department to Packing Department h Production costs transferred from Packing Department to Finished Goods Cost of goods sold during the period Instructions $153.200 $101,200 35,200 3.960 1,420 $ 72.300 48,800 14,000 25,100 $ 13.200 10,900 $2,500 1,000 $ 34,500 38,120 $208,600 $328,300 $329,500 1. Journalize the entries to record the operations, identifying each entry by letter. 2. Compute the December 31 balances of the inventory accounts. 3. Compute the December 31 balances of the factory overhead accounts. PR 21-2A Cost of production report objs. 2, 4 Oreo Chocolate Company processes chocolate into candy bars. The process begins by placing direct materials (raw chocolate, milk, and sugar) into the Blending Department. All materials are placed into production at the beginning of the blending process. After blending, the milk chocolate is then transferred to the Moulding Department, where the milk chocolate is formed into candy bars. The following is a partial work in process account of the Blending Department at January 31, 2010: 1 Conversion rate per equivalent unit $0.80 NEL (continued)