Question
fryers choice produces a specialty blended vegetable oil widely used in restaurant deep fryers. the blending process creates a cooking oil that can be heated
fryers choice produces a specialty blended vegetable oil widely used in restaurant deep fryers. the blending process creates a cooking oil that can be heated to a high temperature, but not smoke ore smell. the oil is produced in two departments. blending and bottling. Raw materials are introduced at various points in the blending department, the following incomplete Work in process T-account is available for the blending department for March:
March 1 balance (20,000 litres; materials 100% complete; labour and overhead 90% complete 38,000 completed and transferred to bottling( litres) $??
March costs added:
Oils (390,000 litres) 495,000
Direct labour 72,000
Overhead 181,000
March 31 inventory (40,000 litre; materials 75% complete labour and overhead 25% complete) $?
The march 1 beginning inventory in the blending department consists of the following cost elements: raw materials $25,000;direct labour $4000; and overhead $9000. Costs incurred during march in the bottling department were materials used, $115,000; direct labour $18,000; and overhead cost applied to production $42,000. the company uses weighted average method.
1) prepare journal entries to record the cost incurred in both blending and bottling departments during March. key your entries to the items a) through f)
a) raw materials were issued for use of production
b) direct labour costs were incurred
c) manufacturing overhead costs for the enitre factory were incurred 225,000
d) Manufacturing overhead cost was applied to production using a predetermined overhead rate
e) untis that were complete with respect to processing in the bottling department were transferred to finished goods $950,000
f) completed units were sold on account $1,500,000. the cost of goods sold was $890,000
2) post the journal entries for 1) above to t accounts. the following account balances existed at the beginning of March. ( the beginning balance in the blending departments work in process account is given above)
Raw materials $681,000
work in process bottling department 65,000
finished goods 20,000
After posting the entries to the t accounts, find the ending balance in the inventory accounts and the manufacturing overhead accounts
3) prepare a production report for the blending department for march
4) prepare the journal entry to record the transfer of finished goods from the blending department to the bottling department and post to appropriate t accounts prepared in 2) above
thanks!!!!!
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