-Comprhensive Problem Weighted average Method

-Product Costing and Journal Entries

Method - Villa Products, located in Problem 1- Comprehensive Problem-Weighted-Average 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: 69,000 Pounds in process, May 1; materials 100% complete; conversion 90% complete Pounds started into production during May Pounds completed and transferred out Pounds in process, May 31; materials 80% complete; conversion 20% complete Cost data: Work in process inventory, May 1: Materials cost $ 78,000 Conversion cost $ 15,300 Cost added during May: Materials cost $ 405,140 Conversion cost $ 83,950 Required (SHOW YOUR WORK): 1. Compute the equivalent units of production for materials and conversion for May 2. Compute the cost per equivalent unit for materials and conversion for May 3. Compute the cost of ending work in process inventory for materials, conversion, and in total for May. 4. and in Compute the cost of units transferred out to the next department for materials, conversion, total for May. 5. Prepare a cost reconciliation report for May 340,000 ? 15,000 PROBLEM 2 - Process Costing Journal Entries - Mike-Loves-Chocolate, Inc, makes chocolate truffles. The company has two processing departments-Cooking and Molding. In the Cooking Department, the raw ingredients for the truffles are mixed and then cooked in special candy- making vats. In the Molding Department, the melted chocolate and other ingredients from the Cooking Department are carefully poured into molds and decorative flourishes are applied by hand. After cooling, the truffles are packed for sale. The company uses a process costing system. The T- accounts below show the flow of costs through the two departments in April: Work in Process-Cooking Debit Credit Balance 4/1 11,000 Transferred out Direct materials 332,000 Direct labor 265,000 Overhead 192,000 Work in Process-Molding Debit Credit Balance 4/1 16,000 Transferred out 979,000 Transferred in 763,000 Direct labor 125,000 Overhead 88,000 Required: Prepare journal entries showing the flow of costs through the two processing departments during April. (You will need entries for everything in the T-accounts except the beginning balances). 763,000