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Colgate manufactures toothbrushes. The brushes are manufactured in 2 sequential processes: Molding and Assembly. The toothbrush handles are manufactured in Colgate brushes own facility in

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Colgate manufactures toothbrushes. The brushes are manufactured in 2 sequential processes: Molding and Assembly. The toothbrush handles are manufactured in Colgate brushes own facility in the Molding Department and the bristles are purchased from an outside manufacturer and are added in the Assembly Department. Information related the Interior Department for the month of October can be summarized as follows: Interior Department: Beginning Units: 1,300 - 70% completed Ending Units: 1,000 - 30% completed New Units started this month: 3,000 Direct Materials costs in beginning WIP: 5310 Conversion costs in beginning WIP: $1,410 Direct Materials costs incurred this month: $2,100 Conversion costs incurred this month: $4,035 In the Molding Department, direct materials are added at the beginning of the process while conversion costs are added uniformly throughout the assembly process. Colgate Inc. prides itself in actually knowing and reporting the cost of its inventory. a. Colgate uses the FIFO for process costing. Use the template below to prepare a process cost report. (Round unit costs to the nearest cent). An excel worksheet is provided. b. Prepare the journal entry reflecting the transfer the costs of the brushes completed in the Molding Department. Put it on the bottom of the excel sheet you submit in journal entry format. What is the amount of the ending Work in Process Inventory balance in the Molding Department for October? Step 1: Beginning Inventory: Account for Units Started this period Physical Units Total Units to Account for Direct % Incurred Conversion % Incurred Materials This Period Costs This Period Step 2: Beginning Inventory Determine Units Started & Completed Equiv. Units Ending WIP Total Equivalent Units Step 3: Beginning Inventory Cost Account for Current Costs Costs Total Costs to Account for Step 4: Compute Unit Current Costs Cost Equivalent Units Unit Cost Cost of Goods Manut. and Step 5: transferred out: Assign Costs From Beginning Inventory to Inventory Costs to Complete Units Started & Completed Total Cost of Goods Completed Ending WIP Inventory Total Costs Accounted For

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