Question
Comprehensive ProblemWeighted-Average Method Villa Products, located in Chicago, uses the weighted-average method in its process costing system. It manufactures a product called Worzel that goes
Comprehensive ProblemWeighted-Average Method Villa Products, located in Chicago, uses the weighted-average method in its process costing system. It manufactures a product called Worzel that goes through three processing stages prior to completion. Information on work in the first department, Cleaning, is given below for May:
Production data: |
|
Pounds in process, May 1; materials 100% complete; conversion 90% complete | 100,000 |
Pounds started into production during May | 350,000 |
Pounds completed and transferred out | ? |
Pounds in process, May 31; materials 80% complete; conversion 20% complete | 30,000 |
Cost data: |
|
Work in process inventory, May 1: |
|
Materials cost | $ 88,400 |
Conversion cost | $ 22,240 |
Cost added during May: |
|
Materials cost | $ 400,000 |
Conversion cost | $ 80,000 |
Required (SHOW YOUR WORK):
6. Prepare the journal entry to record the material and conversion costs added to production this period (assume conversion costs are 40% direct labor costs and 60% overhead costs)
7. Prepare the journal entry to record the cost of the units completed and transferred out to the Mixing Department.
8. Prepare a T-account for the WIP account for the Cleaning Department
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