Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Lamont Company produced 80,000 machine parts for diesel engines. There were no beginning or ending work-in-process inventories in any department. Lamont incurred the following costs
Lamont Company produced 80,000 machine parts for diesel engines. There were no beginning or ending work-in-process inventories in any department. Lamont incurred the following costs for May:
Molding Department | Grinding Department | Finishing Department | ||||
Direct materials | $12,000 | $5,400 | $8,000 | |||
Direct labor | 10,000 | 8,800 | 12,000 | |||
Applied overhead | 17,000 | 14,000 | 11,000 |
Required:
1. Calculate the costs transferred out of each department.
Costs Transferred Out | |
Molding | $ |
Grinding | $ |
Finishing | $ |
Prepare the journal entries corresponding to these transfers. Also, prepare the journal entry for Grinding that reflects the costs added to the transferred-in goods received from Molding. For a compound transaction, if an amount box does not require an entry, leave it blank.
Transfer entries: | Work in Process-Grinding | ||
Work in Process-Molding | |||
Work in Process-Finishing | |||
Work in Process-Grinding | |||
Finished Goods | |||
Work in Process-Finishing | |||
Cost-added entry (Grinding only): | Work in Process-Grinding | ||
Materials | |||
Payroll | |||
Overhead Control |
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started