Coor Problem 2 Tronc Payson Company produces a product that passes through two departments, mixing and cooking. In the mixing department, all direct materials are added at the beginning of the process. All other manufacturing inputs are added uniformly. The following information pertains to the mixing department for April: 1. Beginning work in process (BWIP), April 1: 100,000 pounds, 40 percent complete with respect to conversion costs. The costs assigned to this work areas follows: Direct materials $20,000 Direct labor 10,000 Overhead 30,000 2. Ending work in process (EWIP), April 30: 50,000 pounds, 60 percent complete with respect to conversion costs. 3. Units completed and transferred out: 360,000 pounds. The following costs were added during the month: Direct materials $211,000 Direct labor 100,000 Overhead 270,000 4. All units are inspected at the 80 percent point of completion, and any spoiled units identified are discarded. During April, 10,000 pounds were spoiled. (Half of the spoiled units are considered normal spoilage.) and FIT Required: 1. Prepare the 5-step cost of production report using the Weighted Average methods. 2. Prepare all the required journal entries for the Mixing Department ACCOUNTING 210 TEST 1 Problem 1 The Black Company uses a job order cost system. The following data pertains to the direct material and direct labor costs charged to production during the month of January Job number 663 664 665 666 Direct Material $3,200 7,800 9,000 3.500 $23.500 Direct Labor $4,000 9,600 12,000 5.400 $31.000 Job 663 was in process at the beginning of January at which time it had incurred $2,500 of direct material costs and $3,000 of direct labor costs. Manufacturing overhead is applied at the rate of 150 percent of direct labor costs. Raw materials purchased during the month amounted to $25,600. Raw materials on hand at the beginning of the month were $5,600. Raw materials requisitioned during the month amounted to $25,000. The factory payroll for the month amounted to $34.800. Manufacturing overhead for the month amounted to $46,900. Job 662 was completed during December at a cost $19,200, but was unsold on December 31. Jobs 663, 664, and 665 were completed during the month. Job 662, 663, and 664 were sold during the month for $98,500., Selling and administrative expenses for the month amounted to $13,400. Required: i. Compute the following as of the end of the month: a. Materials inventory balance. b. Work in process. c. Finished goods. d. Cost of goods sold. e. Over-or-under applied overhead. 2. Prepare the necessary entries to record the following a. Purchase of materials. b. Requisition of materials. c. Factory payroll. d. Application of manufacturing overhead. e. Completion of Jobs 663, 664, and 665. f. Sale of Jobs 662, 663, and 664. f. Disposition of over-or-under applied overhead. Prepare an income statement for the month of January, including a cost of goods manufactured and sold
