Crafty Paint prepares and packages paint products. Crafty Paint has two departments: Bending and Packaging Direct materials are added at the beginning of the blending process dyes) and at the end of the packaging process (cans). Data from the month of May for the Blending Department are as follows: Click the icon to view the data from May Crafty Paint completed the following production cost report for its Blending Department for the month of May: Click the icon to view the assignment of costs) Conversion costs are added evenly throughout each process. The company uses the weightes-average method. Read the requirements Requirements. What is the average cost per gallon transferred out of the Blending Department into the Packaging Department? Why would the company managers want to know this cost? Determine the formula, then enter the amounts to calculate the average cost per galon transferred out of the Blending Department (Round your answer to the nearest cent. Average cost pergation Why would the company managers want to know this cost? A Managers would compare the average cost per qalion against their budgeted costs to determine whether the costs of the blending process remain under control. If budgeted costs are higher than the actual average cost per gailon, then the managers have done a good job controling costs. In contrast, if the budgeted costs are lower than the actual average cost per gallon, managers will investigate the reason for the higher than expected costs in an effort to regain control over costs B. Managers use the cost per gallon for external financial reporting-specifically to calculate the cost of Goods Sold on the income Statement OC. Managers use the cost per gallon for external financial reporting-specifically to calculate the ending Inventory balances on the Balance Sheet OD. All of the above are reasons why management would be interested in this cost per unit tor gallons completed and transferred out to Finished Goods Irwentory Crafty Paint prepares and packages paint products. Crafty Paint has two departments Blending and Packaging Crafty Paint completed the following production cost report for its Blending Department for the month of May Direct materials are added at the beginning of the blending process (dyes) and at the end of the packaging process Click the icon to view the assignment of conte) (cans) Data from the month of May for the Blending Department are as follows: Click the icon to view the data from May Conversion costs are added evenly throughout each process. The company uses the weighted average method, Read the requirements. Requirement 2. Post the Jumal endles to the Work in Process inventory--Sending T-account. What is the ending balance? Post the entries using the appropriate descriptions as posting references. Denole the ending haiance as "Be Work in Process inventory--Blending Beg. Bal Requirement 3. What is the average cost per gallon transferred out of the Blending Department into the Packaging Department? Why would the company managers want to know this cost? Determine the formula, then enter the amounts to calculate the average cost per gallon transferred out of the Blending Department (Round your answer to the nearest cant) Average cost per gation Why would the company managers want to know this cost? Crafty Paint prepares and packages paint products. Crafty Paint has two departments: Blending and Packaging. Direct materials are added at the beginning of the blending process (dyes) and at the end of the packaging process (cans). Data from the month of May for the Blending Department are as follows: (Click the icon to view the data from May) Crafty Paint completed the following production cost report for its Blending Department for the month of May (Click the icon to view the assignment of costs) Conversion costs are added evenly throughout each process. The company uses the weighted average method. Read the regulaments Requirement 1. Prepare the journal entries to record the assignment of direct materials and direct labor and the allocation of manufacturing overhead to the Blending Department. Also, prepare the Journal entry to record the costs of the gallons completed and transferred out to the Packaging Department. Assume labor costs are accrued and not yet paid. (Record debits first, then credits. Exclude explanations from any journal entries) Begin with the summary journal entry to record the assignment of direct materials and direct labor and the allocation of manufacturing overhead to the Blending Department. Date Accounts Debit Credit May 31 Next, prepare the journal entry to record the costs of the gations completed and transferred out to the Packaging Department Date Accounts Debit Credit May 31 Jout Requirements BI b De exe birtm 1. Prepare the journal entries to record the assignment of direct materials and direct labor and the allocation of manufacturing overhead to the Blending Department. Also, prepare the journal entry to record the costs of the gallons completed and transferred out to the Packaging Department. Assume labor costs are accrued and not yet paid. 2. Post the journal entries to the Work-in-Process Inventory-Blending T-account. What is the ending balance? 3. What is the average cost per gallon transferred out of the Blending Department into the Packaging Department? Why would the company managers want to know this cost? Print Done Lost Data Table ts.) Jach O gallons 9,000 gallons 4,000 gallons parti anai ht. 5,000 gallons Gallons Beginning Work-in-Process Inventory Started in production Completed and transferred out to Packaging in May Ending Work-in-Process Inventory (30% of the way through the blending process) Costs Beginning Work-in-Process Inventory Costs added during May: Direct materials Direct labor Manufacturing overhead allocated Total costs added during May $ 0 6,750 1,300 2,000 10,050 $ $ Print Done 246 46 47 10 10 on 24 inction 20 Thie Toet. 100 nte necikla Reference fo S. Total Costs sc m 10,050 Production Cost Report - Blending Department (Partial) Month Ended May 31 Direct Conversion COSTS Materials Costs Costs to account for: Beginning work-in-process 0 $ 0$ Costs added during the period 6,750 3,300 Total costs to account for 6,750 3,300 Divided by: Total EUP 9,000 5,500 Cost per equivalent unit $ 0.75 $ 0.60 Costs accounted for: Completed and transferred out 3,000 $ 2,400 $ Ending work-in-process 3,750 $ Total costs accounted for 6,750 $ 3,300 $ 10,050 $ 5,400 4,650 900 10,050 Print Done