Question
Need help tring to understand how to do these problems, I am lost Product Cost ReportWeighted Average Method Reston Manufacturing Corporation produces a cosmetic product
Need help tring to understand how to do these problems, I am lost
Product Cost ReportWeighted Average Method
Reston Manufacturing Corporation produces a cosmetic product in three consecutive processes. The costs of Department 1 for May 2016 were as follows:
Cost of beginning inventoryDirect material$14,700Conversion costs24,885Costs added in Department 1Direct material$443,100Direct labor447,825Manufacturing overhead304,6951,195,620
Department 1 handled the following units during May:
Units in process, May 12,000Units started in Department 140,000Units transferred to Department 239,000Units in process, May 313,000
On average, the May 1 units were 30% complete. The May 31 units were 60% complete. Materials are added at the beginning of the process, and conversion costs occur evenly throughout the process in Department 1. Reston uses the weighted average method for process costing.
Prepare the product cost report for Department 1 for May.
Round average cost per equivalent unit tofour decimal places. Use rounded answers for subsequent calculations. Round other answers to the nearest whole number.
Reston Manufacturing Corporation Department 1
Flow of Units and Equivalent Units Calculations, May 2016Equivalent Units% Work
DoneDirect
Materials% Work
DoneConversion
CostsComplete/Transferred
Answer
Answer
Answer
Answer
Ending Inventory
Answer
Answer
Answer
Answer
TotalAnswer
Answer
Answer
Product Cost ReportDirect
MaterialsConversion
CostsBeginning Inventory
Answer
Answer
CurrentAnswer
Answer
Answer
Total Costs to Account For
Answer
Answer
Total Equivalent Units
Answer
Average cost / Equivalent unit (round four decimal places)
Answer
Complete / Transferred:Direct Materials
Conversion costsAnswer
Cost of Goods Manufactured
Ending Inventory:Direct Materials
Conversion costs
Cost of Ending Inventory
Total Costs Allocated
problem 2, I am not sure how start these steps
Two Departments, Journal Entries with Supporting CalculationsWeighted Average Method
Patterson Laboratories, Inc., produces one of its products in two successive departments. All materials are added at the beginning of the process in Department 1; no materials are used in Department 2. Conversion costs are incurred evenly in both departments. Patterson uses the weighted average method for process costing. January 1, 2019, inventory account balances are as follows:
Materials inventory$30,000Work in processDepartment 1 (3,000 units, 30% complete)Direct material4,560Conversion costs10,640Work in processDepartment 2 (3,550 units, 40% complete)43,439Finished goods inventory (2,000 units @ $16)32,000
During January, the following transactions occurred:
- Purchased material on account, $90,000.
- Placed $84,000 of material into process in Department 1. This $84,000 represents 24,000 units of
- materials.
- Distributed total payroll costs: $108,116 of direct labor to Department 1, $62,700 of direct labor
- to Department 2, and $51,000 of indirect labor to Manufacturing Overhead.
- Incurred other actual manufacturing overhead costs, $81,000. (Credit Other Accounts.)
- Applied overhead to the two processing departments: $88,000 to Department 1 and $43,900 to
- Department 2.
- Transferred 25,000 completed units from Department 1 to Department 2. The 2,000 units remaining
- in Department 1 were 20% completed with respect to conversion costs.
- Transferred 26,000 completed units from Department 2 to finished goods inventory. The 2,550
- units remaining in Department 2 were 70% completed with respect to conversion costs.
- Sold 20,000 units on account at $27 per unit. Patterson uses weighted average inventory costing procedures
- for the finished goods inventory.
- Part A
- Part B
- Part C
- Part D
Record the January transactions in general journal form for Department 1 and Department 2.
Hint: Complete the product cost reports for Departments 1 and 2 before entering journal entries for transactions 6, 7, and 8.
General JournalRef.DescriptionDebitCredit1.Answer
Accounts Payable
Accounts receivable
Finished goods inventory
Cost of goods sold
Sales
Manufacturingoverhead
Materials inventory
Other accounts
Wages payable
Work in process-Department 1
Work in process-Department 2
Answer
Answer
Answer
Accounts Payable
Accounts receivable
Finished goods inventory
Cost of goods sold
Sales
Manufacturingoverhead
Materials inventory
Other accounts
Wages payable
Work in process-Department 1
Work in process-Department 2
Answer
Answer
2.Answer
Accounts Payable
Accounts receivable
Finished goods inventory
Cost of goods sold
Sales
Manufacturingoverhead
Materials inventory
Other accounts
Wages payable
Work in process-Department 1
Work in process-Department 2
Answer
Answer
Answer
Accounts Payable
Accounts receivable
Finished goods inventory
Cost of goods sold
Sales
Manufacturingoverhead
Materials inventory
Other accounts
Wages payable
Work in process-Department 1
Work in process-Department 2
Answer
Answer
3.Work in process-Department 1Answer
Answer
Work in process-Department 2Answer
Answer
Answer
Accounts Payable
Accounts receivable
Finished goods inventory
Cost of goods sold
Sales
Manufacturingoverhead
Materials inventory
Other accounts
Wages payable
Work in process-Department 1
Work in process-Department 2
Answer
Answer
Answer
Accounts Payable
Accounts receivable
Finished goods inventory
Cost of goods sold
Sales
Manufacturingoverhead
Materials inventory
Other accounts
Wages payable
Work in process-Department 1
Work in process-Department 2
Answer
Answer
4.Answer
Accounts Payable
Accounts receivable
Finished goods inventory
Cost of goods sold
Sales
Manufacturingoverhead
Materials inventory
Other accounts
Wages payable
Work in process-Department 1
Work in process-Department 2
Answer
Answer
Other accountsAnswer
Answer
5.Work in process-Department 1Answer
Answer
Answer
Accounts Payable
Accounts receivable
Finished goods inventory
Cost of goods sold
Sales
Manufacturingoverhead
Materials inventory
Other accounts
Wages payable
Work in process-Department 1
Work in process-Department 2
Answer
Answer
Answer
Accounts Payable
Accounts receivable
Finished goods inventory
Cost of goods sold
Sales
Manufacturingoverhead
Materials inventory
Other accounts
Wages payable
Work in process-Department 1
Work in process-Department 2
Answer
Answer
6.Answer
Accounts Payable
Accounts receivable
Finished goods inventory
Manufacturing overhead
Materials inventory
Other accounts
Wages payable
Work in process-Department 1
Work in process-Department 2
Answer
Answer
Answer
Accounts Payable
Accounts receivable
Finished goods inventory
Cost of goods sold
Sales
Manufacturingoverhead
Materials inventory
Other accounts
Wages payable
Work in process-Department 1
Work in process-Department 2
Answer
Answer
7.Answer
Accounts Payable
Accounts receivable
Finished goods inventory
Cost of goods sold
Sales
Manufacturingoverhead
Materials inventory
Other accounts
Wages payable
Work in process-Department 1
Work in process-Department 2
Answer
Answer
Answer
Accounts Payable
Accounts receivable
Finished goods inventory
Cost of goods sold
Sales
Manufacturingoverhead
Materials inventory
Other accounts
Wages payable
Work in process-Department 1
Work in process-Department 2
Answer
Answer
8.Answer
Accounts Payable
Accounts receivable
Finished goods inventory
Cost of goods sold
Sales
Manufacturingoverhead
Materials inventory
Other accounts
Wages payable
Work in process-Department 1
Work in process-Department 2
Answer
Answer
Answer
Accounts Payable
Accounts receivable
Finished goods inventory
Cost of goods sold
Sales
Manufacturingoverhead
Materials inventory
Other accounts
Wages payable
Work in process-Department 1
Work in process-Department 2
Answer
Answer
To record sales.Answer
Accounts Payable
Accounts receivable
Finished goods inventory
Cost of goods sold
Sales
Manufacturingoverhead
Materials inventory
Other accounts
Wages payable
Work in process-Department 1
Work in process-Department 2
Answer
Answer
Answer
Accounts Payable
Accounts receivable
Finished goods inventory
Cost of goods sold
Sales
Manufacturing overhead
Materials inventory
Other accounts
Wages payable
Work in process-Department 1
Work in process-Department 2
Answer
Answer
To record cost of goods sold.
Determine the balances remaining in the Materials Inventory account, in each work in process account, and in the Finished Goods Inventory account.
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Financial And Managerial Accounting
Authors: John J. Wild
9th Edition
1260728773, 9781260728774
