Cost of Production and Journal Entries Lighthouse Paper Company manufactures newsprint The product is manufactured in two departments, Papermaking and Converting Pulp is first placed into a vessel at the beginning of papermaking production The following information concerns production in the Papermaking Department for March Account Work in ProcessPapermaking Department Account No Date Item Debit Credit Balance Debit Credit Mar 1 Bal , 6,900 units, 60 completed 9,384 31 Direct materials, 36,800 units 62,560 71,944 31 Direct labor 17,370 89,314 31 Factory overhead 9,776 99,090 31 Goods transferred, 41,100 units 31 Bal , 2,600 units, 70 completed Question Content Area a1 Prepare the March journal entry for the Papermaking Department for the materials charged to production If an amount box does not require an entry, leave it blank blank Factory Overhead Papermaking DepartmentFinished GoodsMaterials PulpWork in Process Converting DepartmentWork in Process Papermaking DepartmentWork in Process Papermaking Department Work in Process Papermaking Department Work in Process Papermaking Department Factory Overhead Papermaking DepartmentFinished GoodsMaterials PulpWork in Process Converting DepartmentWork in Process Papermaking DepartmentMaterials Pulp Materials Pulp Materials Pulp Feedback Area Feedback a1 Remember there are three different types of inventory materials, work in process, and finished goods Question Content Area a2 Prepare the March journal entry for the Papermaking Department for the conversion costs charged to production If an amount box does not require an entry, leave it blank blank Factory OverheadMaterials PulpWages ExpenseWork in Process Converting DepartmentWork in Process Papermaking DepartmentWork in Process Papermaking Department Work in Process Papermaking Department Work in Process Papermaking Department CashCost of Goods SoldWages PayableWork in Process Converting DepartmentWork in Process Papermaking DepartmentWages Payable Wages Payable Wages Payable Accounts PayableCashFactory OverheadWork in Process Converting DepartmentWork in Process Papermaking DepartmentFactory Overhead Factory Overhead Factory Overhead Feedback Area Feedback a2 What types of costs are included in conversion costs By adding these conversion costs are the units complete and ready for transfer Question Content Area a3 Prepare the March journal entry for the Papermaking Department for the completed production transferred to the Converting Department If an amount box does not require an entry, leave it blank If required, round your interim calculations to two decimal places and your final answer to the nearest dollar blank CashFinished GoodsMaterials PulpWork in Process Converting DepartmentWork in Process Papermaking DepartmentWork in Process Converting Department Work in Process Converting Department Work in Process Converting Department CashFinished GoodsMaterials PulpWork in Process Converting DepartmentWork in Process Papermaking DepartmentWork in Process Papermaking Department Work in Process Papermaking Department Work in Process Papermaking Department Feedback Area Feedback a3 Remember that each department has a work in process account Are these units 100 complete and ready to be sold or are they still in process Question Content Area b Determine the Work in ProcessPapermaking Department March 31 balance If required, round your interim calculations to two decimal places and your final answer to the nearest dollar $fill in the blank e8686008dfdc022 1 Feedback Area Feedback b How many units are still in process at the end of the period How complete are these units in terms of materials and conversion How many equivalent units does the ending work in process contain Feedback Area

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Cost of Production and Journal Entries Lighthouse Paper Company manufactures newsprint. The product is manufactured in two departments, Papermaking and Converting. Pulp is first placed

Cost of Production and Journal Entries

Lighthouse Paper Company manufactures newsprint. The product is manufactured in two departments, Papermaking and Converting. Pulp is first placed into a vessel at the beginning of papermaking production. The following information concerns production in the Papermaking Department for March:

Account Work in ProcessPapermaking Department					Account No.
Date		Item	Debit	Credit	Balance
Date		Item	Debit	Credit	Debit	Credit
Mar.	1	Bal., 6,900 units, 60% completed			9,384
	31	Direct materials, 36,800 units	62,560		71,944
	31	Direct labor	17,370		89,314
	31	Factory overhead	9,776		99,090
	31	Goods transferred, 41,100 units		?	?
	31	Bal., 2,600 units, 70% completed			?

Question Content Area

a1. Prepare the March journal entry for the Papermaking Department for the materials charged to production. If an amount box does not require an entry, leave it blank.

blank	Factory Overhead-Papermaking DepartmentFinished GoodsMaterials-PulpWork in Process-Converting DepartmentWork in Process-Papermaking DepartmentWork in Process-Papermaking Department	Work in Process-Papermaking Department	Work in Process-Papermaking Department
	Factory Overhead-Papermaking DepartmentFinished GoodsMaterials-PulpWork in Process-Converting DepartmentWork in Process-Papermaking DepartmentMaterials-Pulp	Materials-Pulp	Materials-Pulp

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Feedback

a1. Remember there are three different types of inventory; materials, work in process, and finished goods.

Question Content Area

a2. Prepare the March journal entry for the Papermaking Department for the conversion costs charged to production. If an amount box does not require an entry, leave it blank.

blank	Factory OverheadMaterials-PulpWages ExpenseWork in Process-Converting DepartmentWork in Process-Papermaking DepartmentWork in Process-Papermaking Department	Work in Process-Papermaking Department	Work in Process-Papermaking Department
	CashCost of Goods SoldWages PayableWork in Process-Converting DepartmentWork in Process-Papermaking DepartmentWages Payable	Wages Payable	Wages Payable
	Accounts PayableCashFactory OverheadWork in Process-Converting DepartmentWork in Process-Papermaking DepartmentFactory Overhead	Factory Overhead	Factory Overhead

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Feedback

a2. What types of costs are included in conversion costs? By adding these conversion costs are the units complete and ready for transfer?

Question Content Area

a3. Prepare the March journal entry for the Papermaking Department for the completed production transferred to the Converting Department. If an amount box does not require an entry, leave it blank. If required, round your interim calculations to two decimal places and your final answer to the nearest dollar.

blank	CashFinished GoodsMaterials-PulpWork in Process-Converting DepartmentWork in Process-Papermaking DepartmentWork in Process-Converting Department	Work in Process-Converting Department	Work in Process-Converting Department
	CashFinished GoodsMaterials-PulpWork in Process-Converting DepartmentWork in Process-Papermaking DepartmentWork in Process-Papermaking Department	Work in Process-Papermaking Department	Work in Process-Papermaking Department

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Feedback

a3. Remember that each department has a work in process account. Are these units 100% complete and ready to be sold or are they still in process?

Question Content Area

b. Determine the Work in ProcessPapermaking Department March 31 balance. If required, round your interim calculations to two decimal places and your final answer to the nearest dollar. $fill in the blank e8686008dfdc022_1

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Feedback

b. How many units are still in process at the end of the period? How complete are these units in terms of materials and conversion? How many equivalent units does the ending work in process contain?

Feedback Area