Lighthouse Paper Company manufactures newsprint. The product is manufactured in two departments, Papermaking and Converting. Pulp is first placed into a vessel at the beginning of papermaking production. The following information concems production in the Papermaking Department for March. Account Work in Process-Papermaking Department Account No. Balance Credit Date Item Debit Credit Debit Mar. 1 Bal., 8,500 units, 10% completed 30,600 31 Direct materials, 45,300 units 90,600 121,200 31 Direct labor 29,020 150,220 31 Factory overhead 16,331 166,551 31 Goods transferred, 50,600 units ? ? 31 Bal., 3,200 units, 20% completed ? a1. Prepare the March journal entry for the Papermaking Department for the materials charged to production. Work in Process-Papermaking Department Materials-Pulp 90,600 90,600 a2. Prepare the March journal entry for the Papermaking Department for the conversion costs charged to production. If an amount box does not require an entry, leave it blank. Work in Process-Papermaking Department Wages Payable Factory Overhead-Papermaking Department 45,351 29,020 16,331 a3. Prepare the March journal entry for the Papermaking Department for the completed production transferred to the Converting Department. If required, round your interim calculations to two decimal places and your final answer to the nearest dollar. Work in Process-Converting Department Work in Process-Papermaking Department b. Determine the Work in Process-Papermaking Department March 31 balance. If required, round your interim calculations to two decimal places and your final answer to the nearest dollar. HW LO 24 25 b EXERCISE 2-5 High-Low Method [LO 2-5] The Cheyenne Hotel in Big Sky, Montana, has accumulated records of the total electrical costs of the hotel and the number of occupancy-days over the last year. An occupancy-day represents a room rented out for one day. The hotel's business is highly seasonal, with peaks occurring during the ski season and in the summer. Electrical Month Occupancy-Days Costs January 1,736 $4,127 February 1,904 $4,207 March. 2,356 $5,083 April 960 $2,857 May 360 $1,871 June. 744 $2,696 July. 2,108 $4,670 August. 2,406 $5,148 September 840 $2,691 October. 124 $1,588 November. 720 $2,454 December. 1,364 $3,529 Required: 1. Using the high-low method, estimate the fixed cost of electricity per month and the variable cost of electricity per occupancy-day. Round off the fixed cost to the nearest whole dollar and the variable cost to the nearest whole cent. 2. What other factors other than occupancy-days are likely to affect the variation in electrical costs from month to month? ACTIVITIES 1. Ziscosteel, a manufacturer of recyclable plastic bags, had the following inventory balances at the beginning of 2012 INVENTORY CLASSIFICATION Raw Material Work In Progress Finished Goods 1-Jan- 18 31-Dec- 18 40,000.00 50,000.00 180,000.00 139,000.00 150,000.00 165,000.00 During the year, the company purchased $250 000 of raw material and spent $400 000 on direct labor. The manufacturing overhead costs were as follows: indirect material 50,000.00 Indirect labor 25,000.00 Depreciation on plant equipment 13,000.00 Utilities 25,230.00 Other 30,000.00 MBF 1213- Managerial Accounting Sales revenue for the year was $1 105 000.00. Selling and administrative expenses for the year amounted to 1100 00.00. The firm's tax rate is 40%. a) Prepare a schedule for Prepare a schedule of cost of goods manufactured b) Establish the cost of goods sold c) Construct an income statement