Jackson Dairy produces an organic butter that is sold by the pound. The production of the butter begins in the Churning Department. Jackson Dairy's Data for the Churning Department for January follows: (Click the icon to view the data from January) Jackson Dairy prepared the following production cost report for January for the Churning Department: (Click the icon to view the January production cost report.) Read the requirements, C. Requirement 1. What journal entry(s) would have been made during the month to record manufacturing costs? (Use Wages Payable as the credit for the direct labor costs.) (Record debits first, then credits. Exclude explanations from any journal entries.) Journal Entry Date Accounts Debit Credit 85,000 units 1,700,000 units Units in beginning Work in Process (WIP) inventory Units started during the month (all direct materials, including cream and salt, are added at the beginning of the churning process) Units in ending Work in Process (WIP) inventory (50% of the way through the process) Cost information is as follows: WIP - Churning Department balance as of January 1: Direct material cost included in beginning WIP balance 160,000 units 538,450 122,100 Conversion cost included in beginning WIP balance $ 660,550 Beginning balance, WIP, January 1 Manufacturing costs incurred during January: Direct materials used Direct labor 1,550,000 14,000 580,000 Manufacturing overhead $ 2,144,000 Total manufacturing costs entered into production during January Jackson Dairy Churning Department Month Ended January 31 Production Cost Report Flow of Equivalent Units Physical Direct Conversion Flow of Production Units Materials Costs Units to account for: Beginning work in process, January 1 85,000 1,700,000 Plus: Started in production during January 1,785,000 Total physical units to account for Units accounted for: Completed and transferred out 1,625,000 160,000 1,625,000 160,000 1,625,000 80,000 Plus: Ending work in process, January 31 Total physical units accounted for 1,785,000 1,785,000 1,705,000 Total equivalent units Direct Conversion Materials Costs Total Costs to Account for and Cost per Equivalent Unit Beginning work in process 538,450 $ 1,550,000 122,100 594,000 Plus: Costs added during January Total costs to account for 2,088,450 1,785,000 716,100 1,705,000 Divided by: Total equivalent units $ 1.17 $ 0.42 Cost per equivalent unit Direct Conversion Materials Costs Total Assignment of total costs: Completed and transferred out: Equivalent units completed and transferred out 1,625,000 1,625,000 1.17 $ $ 0.42 Multiplied by: Cost per equivalent unit Costs assigned to units completed and transferred out $ 1,901,250 $ 682,500 $ 2,583,750 80,000 Ending work in process: Equivalent units in ending work in process, January 31 Multiplied by: Cost per equivalent unit Costs assigned to units in ending work in process, January 31 160,000 1.17 $ $ 0.42 187,200 $ 33,600 220,800 $ 2,804,550 Total costs accounted for
