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1 A F G HI j B C D E - Weighted Average Process Costing 5 7 Clesi Company produces its finished product in two processing departments--Mixing and Finishing. The following information is available for the month of June: Mixing Department: The beginning work-in-process inventory was $45,200 ($12,500 direct materials and $32,700 conversion costs) and consisted of 2,700 units. During June, an additional 9,800 units were started into production. A total of 10,200 units were completed and transferred out to the Finishing Department The ending work-in-process inventory consisted of 2,300 units which were 40% complete as to conversion costs. The following costs were incurred during June: direct materials $110,000; direct labor $160,000; and factory overhead $56,388. + Direct materials are added at the beginning of the process in the Mixing Department and conversion costs are incurred evenly throughout the production process. 3 9 LO 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 Finishing Department: The beginning work in process inventory was $189,930 ($127,730 transferred-in costs and $62,200 conversion costs) and consisted of 4,100 units. During June, a total of 12,900 units were completed and transferred out to Finished Goods Inventory The ending work in process inventory consisted of 1,400 units which were 60% complete as to conversion costs. The following costs were incurred during June: direct materials $168,990, direct labor $80,000; and factory overhead costs $111.990. Direct materials are added at the end of the process in the Finishing Department and conversion costs are incurred evenly throughout the production process 27 28 29 Module 5 Module Enter MacB ne Insert Draw Page Layout Formulas Data Review View Tell me Times New Roman 12 A A Wrap Text General iste B Merge & Center A . H I ) K L DE A. Prepare a production report for Junc for the Mixing Department. CLESI COMPANY PRODUCTION REPORT-MIXING DEPT JUNE SCHEDULE OF EQUIVALENT UNITS 1. Beg WIP Units Started Total Units to Account For DM Units Completed End WIP Total Units Accounted For Equivalent Units of Production 3 II. COMPUTATION OF PER UNIT COSTS 4 5 6 -7 -8 19 50 51 52 53 54 55 56 57 BEG WIP CURRENT COSTS TOTAL COSTS + EQUIV UNITS UNIT COST DM CC Totals LIL. ASSIGNMENT OF COSTS TO PRODUCTION Cost of Goods Manufactured: SA Modules Module Enter MacBook Air 12 Wrap Text General Paste G1 A Times New Roman A A BIU A EE Merge & center X X B C D E F G . I 3 55 III. ASSIGNMENT OF COSTS TO PRODUCTION 56 57 Cost of Goods Manufactured: 58 59 60 Ending Work in Process: 61 DM 62 63 Total Ending Work in Process 64 Total Cost Assigned 65 66 67 B. Give the general journal entry to record the transfer of the completed units from the 68 Mixing Department to the Finishing Department for June. 69 Account Titles DR CR 70 71 72 73 74. Prepare a production report for June for the Finishing Department WANDA COMPANY PRODUCTION REPORT-FINISHING DEPT 77 JUNE 78 SCHEDULE OF EQUIVALENT UNITS 79 80 Beg WIP 81 Units Transferred-In 82 Toint Account for + Enter 75 76 L. Module 5 Module 6 MacBook Air esc go 3 COD DDD F4 Autosave ABE. Benfile (9 Home Insert Draw Page Layout Formulas Data Review View Tell me Times New Roman - 12 - AA 00 Peste BTU Can Tomate GI XS B D E F G 1 JK LM 1. SCHEDULE OF EQUIVALENT UNITS Beg WIP Units Transferred-In Total Units to Account For T-IN DM Units Completed End WIP Total Units Accounted For Equivalent Units of Production IL COMPUTATION OF PER UNIT COSTS 78 79 80 81 82 83 84 85 86 87 B8 89 90 91 92 93 94 95 96 97 98 99 100 101 102 103 104 LAE BEG WIP CURRENT COSTS + TOTAL COSTS EQUIV. UNITS UNIT COST T-IN CC DM Totals III ASSIGNMENT OF COSTS TO PRODUCTION Cost of Goods Manufactured: Ending Work in Process: Modules Modules Enter MacBook Air E FI 30 989 F3 14 55 A 7 # 3 2 $ 4 % 5 & 7 6 00 wtoSave net Data Review View Tell me Formulas ame Insert Draw Page Layout Was Text Times New Roman 12 Paste Merge Center A- BIU 1 XVI 3 L G 1 B D EF 06 9 III. ASSIGNMENT OF COSTS TO PRODUCTION 20 21 Cost of Goods Manufactured: 02 03 04 Ending Work in Process: OS T-IN .07 DM Total Ending Work in Process 209 Total Cost Assigned 110 111 D. Give the general journal entry to record the transfer of the completed units from the Finishing 112 Department to finished goods for Junc. 113 Account Titles DR CR 114 115 108 116 117 E. Make the appropriate entries in the Work in Process T-accounts of the Mixing and 118 Finishing Departments 119 WIP-Mixing WIP-Finishing 120 121 122 123 124 125 Modules Module Enter MacBook Air CSC FI ODO 80 F3 F2 000 4 FS Benfile (1) AutoSave Asus Insert Home Draw Page Layout Formulas Data Review View Tell me Times New Roman 12 Wrap Text Paste BIU A ==== Morge a Center GI X . B D E F G H L I ) K TID 117 E. Make the appropriate entries in the Work in Process T-accounts of the Mixing and 118 Finishing Departments: 119 WIP-Mixing WIP-Finishing 120 121 122 123 124 125 126 127 128 129 F. Why is computing cost of goods sold in process costing problematic? 130 131 132 133 134 135 136 137 138 139 140 141 Modus Module Enter MacBook Air