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 (yes) and at the end of the packaging process can Data from the month of May for the Blending Department are as follow mclick 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 requirements Requirement 1. Prepare the journal entries to record the assignment of direct materials and direct tabor and the allocation at manufacturing overhead to the Blending Department. Also, prepare the Journal entry to record the costs of the gations completed and transferred out to the Packaging Department. Assume labor costs are accrued and not yet paid. Record debit test the credits Excode explanation from any oumaltres 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 Debut Credit Next, prepare the journal entry to record the costs of the galons completed and transferred out to the Packaging Department Date Accounts Debit Credit May 31 Crafty Paint prepares and packages paint products Crafty Paint has two departments Blending and Packaging Craty Paint completed the following production cost report for ts Blending Department for the month of May. Direct materials are added at the beginning of the blending process (yesand at the end of the packaging process Click the icon to view the assigment of cans) Data from the month of May for the Blending Department are as follow mick the icon to view the data from May Conversion costs are added evenly throughout each process. The company was the weighted average method Read the res Requirement 2. Post the journal entries to the Worin Process Inventory--tending T-account. What is the ending balance? Post the entries using the appropriate descriptions as posting references. Denote the ending balance as "Be Work in Process inventory-Branding Beg. Requirement 3. What is the average cont pergation transferred out of the Binding Department in the Packaging Department Why would the company managers want to know the cost? Determine the form the enter the amounts to calculate the average cost per galon transferred out of the Binding Department (Round your answer to the Average cost pergation 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 (yes) and at the end of the packaging process cans) Data from the month of May for the Binding Department are as follows Click the lowest from May Crafty Paint completed the following production cost report for its Blending Department for the month of May Click the conview the assignment of cow) Comersion costs and assed every roughout each process. The companyses the wich-average method, Read the moments Requirement 3. What is the average cost per gation 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 trending Department Round your answer to the recent Average cont per alon Why would the company managers want to know this coul? O A Managers would compare the average cost per galon against their budgeted costs to determine whether the costs of the blending process remain under control budgeted costs are higher than the actual average cost per galon. Then the managers have done a good job controlling costs. In contrast, 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 O Managers we the cont per paion for external financial reporting percay to close the cost of Goods Sold on the income Statement OC Managers te reo pergation for estem tranciat reporting cay to calculate the ending nentory batances on the Blanchet O of the above we reason why management would be interested in this com per unit bergatore completed and wanteved out to the Goods inventory 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