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Operation Costing: Unit Costs and Journal Entries Jacson Company produces two brands of a popular pain medication: regular strength and extra strength. Regular strength is
Operation Costing: Unit Costs and Journal Entries Jacson Company produces two brands of a popular pain medication: regular strength and extra strength. Regular strength is produced in tablet form, and extra strength is produced in capsule form. All direct materials needed for each batch are requisitioned at the start. The work orders for two batches of the products are shown below, along with some associated cost information: Work Order 121 (Regular Strength) Work Order 122 (Extra Strength) Direct materials (actual costs): 9,000 15,000 Applied conversion costs: Mixing ? ? Tableting $5,000 Encapsulating $6,000 Bottling ? ? Batch size (bottles of 100 units) 12,000 18,000 In the Mixing Department, conversion costs are applied on the basis of direct labor hours. Budgeted conversion costs for the department for the year were $60,000 for direct labor and $190,000 for overhead. Budgeted direct labor hours were 5,000. It takes one minute of labor time to mix the ingredients needed for a 100-unit bottle (for either product). In the Bottling Department, conversion costs are applied on the basis of machine hours. Budgeted conversion costs for the department for the year were $400,000. Budgeted machine hours were 20,000. It takes one-half minute of machine time to fill a bottle of 100 units. Required: Question Content Area 1. What are the conversion costs applied in the Mixing Department for each batch? Mixing Regular Strength $fill in the blank 815c57029fd6fa0_1 Extra Strength $fill in the blank 815c57029fd6fa0_2 What are the conversion costs applied in the Bottling Department for each batch? Bottling Regular Strength $fill in the blank 815c57029fd6fa0_3 Extra Strength $fill in the blank 815c57029fd6fa0_4 2. Calculate the cost per bottle for the regular and extra strength pain medications. If required, round your answers to the nearest cent. Unit cost Regular Strength $fill in the blank 815c57029fd6fa0_5 Extra Strength $fill in the blank 815c57029fd6fa0_6 Question Content Area 3. Prepare the journal entries that record the costs of the 12,000 regular strength batch as it moves through the various operations. blank To record requisitions of materials for mixing. blank To record the application of overhead and the incurrence of direct labor for mixing. blank To record the transfer of cost of goods completed from mixing to tableting. blank To record the application of overhead and the incurrence of direct labor for tableting. blank To record the transfer of cost of goods completed from tableting to bottling. blank To record the application of overhead and the incurrence of direct labor for bottling. blank To record the transfer of cost of goods completed from bottling to finished goods. Question Content Area 4. Suppose that the direct materials are requisitioned by each department as needed for a batch. For the 12,000 regular strength batch, direct materials are requisitioned for the Mixing and Bottling departments. Assume that the amount of cost is split evenly between the two departments. How will this change the journal entries made in Requirement 3? Indicate below what the journal entries would be in this case. blank To record requisitions of materials for mixing. blank To record the application of overhead and the incurrence of direct labor for mixing. blank To record the transfer of cost of goods completed from mixing to tableting. blank To record the application of overhead and the incurrence of direct labor for tableting. blank To record the transfer of cost of goods completed from tableting to bottling. blank To record requisitions of materials for bottling. blank To record the application of overhead and the incurrence of direct labor for bottling. blank To record the transfer of cost of goods completed from bottling to finished goods
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