Organic Dairy produces an organic butter that is sold by the pound. The production of the butter begins in the Churning Department. Organic Dairy's Data for the Churning Department for January follows: (Click the icon to view the data from January.) Organic 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. Requirements - X Requirement 1. What journal entry(s) would have been made d costs.) (Record debits first, then credits. Exclude explanations fro Date Journal Entry Accounts 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.) 2. What journal entry is needed at the end of the month to transfer the cost of the butter out of the Churning Department and into the next department, the Forming Department? 3. Post the journal entries to the "Work in Process Inventory - Churning Department" T-account. Data table 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 (40% 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 Conversion cost included in beginning WIP balance Darinning halon WID Januan, A 90,000 units 1,800,000 units 190,000 units 455,700 38,600 $ 494,300 Data table Conversion cost included in beginning WIP balance 38,600 $ 494,300 Beginning balance, WIP, January 1 I Manufacturing costs incurred during January: Direct materials used $ 1,680,000 Direct labor 11,000 572,000 Manufacturing overhead $ 2,263,000 Total manufacturing costs entered into production during January Reference Flow of Production Organic Dairy Churning Department Month Ended January 31 Production Cost Report Flow of Physical Units to account for: Beginning work in process, January 1 Dlus Started in production during January Equivalent Units Direct Conversion Units Materials Costs 90,000 1,800,000 Reference Plus: Started in production during January I,OUUUUU 1,890,000 Total physical units to account for Units accounted for: Completed and transferred out 1,700,000 1,700,000 1,700,000 Plus: Ending work in process, January 31 190,000 190,000 76,000 1,890,000 Total physical units accounted for 1,890,000 1,776,000 Total equivalent units Direct Conversion Reference Total Costs to Account for and Cost per Equivalent Unit Beginning work in process Plus: Costs added during January Total costs to account for Divided by: Total equivalent units Cost per equivalent unit Direct Conversion Materials Costs $ 455,700 $ 38,600 1,680,000 583,000 2,135,700 621,600 1,890,000 1,776,000 1.13 $ 0.35 Direct Conversion Reference Direct Conversion Assignment of total costs: Materials Costs Total Completed and transferred out: Equivalent units completed and transferred out Multiplied by: Cost per equivalent unit 1,700,000 1.13 $ 1,700,000 0.35 $ 1,921,000 $ 595,000 $2,516,000 Costs assigned to units completed and transferred out Ending work in process: Equivalent units in ending work in process, January 31 190,000 76,000 $ 1 13 S 035 Reference Equivalent units completed and transferred out Multiplied by: Cost per equivalent unit 1,700,000 $ 1.13 $ Costs assigned to units completed and transferred out $ 1,921,000 $ 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 Total costs accounted for SA SA $ 1,700,000 0.35 595,000 $ 2,516,000 $90,000 1.13 $ 214,700 $ 76,000 0.35 241,300 26,600 $ 2,757,300