P5-7 : Workings to answer P5-8
Problem 5-7 \begin{tabular}{|c|c|c|c|c|} \hline \multicolumn{5}{|c|}{\begin{tabular}{c} Premier Products Inc. \\ Cost of Production Summary-Shaping \\ For the Month Ended July 31, 2016 \end{tabular}} \\ \hline Cost of goods received from Cutting during month & & & $ & 54,000 \\ \hline \multicolumn{5}{|l|}{ Cost of production for month: } \\ \hline Materials & $ & 1,200 & & \\ \hline Labor & & 6,000 & & \\ \hline Factory overhead & & 4,800 & & \\ \hline Total & & & & 12,000 \\ \hline Total costs to be accounted for & & & $ & 66,000 \\ \hline \multicolumn{5}{|l|}{ Unit output for month: } \\ \hline Finished and transferred to Finishing during month & & & & 4,400 \\ \hline Equivalent units of work in process, end of month & & & & 400 \\ \hline Total equivalent production & & & & 4,800 \\ \hline \multicolumn{5}{|l|}{ Unit cost for month: } \\ \hline Materials & & & $ & 0.25 \\ \hline Labor & & & & 1.25 \\ \hline Factory overhead & & & & 1.00 \\ \hline Total & & & $ & 2.50 \\ \hline \multicolumn{5}{|l|}{ Inventory costs: } \\ \hline \multicolumn{5}{|l|}{ Costs of goods finished and transferred to Finishing: } \\ \hline Unit cost of Cutting and Shaping combined & &, 000.00 & & \\ \hline Units transferred to Finishing during month & & 11,000 & $ & 55,000 \\ \hline \multicolumn{5}{|l|}{ Cost of work in process, end of month: } \\ \hline Costs in Cutting & $ & 10,000 & & \\ \hline Costs in Shaping & & 1,000 & & 11,000 \\ \hline Total production costs accounted for & & & $ & 66,000 \\ \hline \end{tabular} Journal entries and cost of goods manufactured statement required: Using the data in P5-7: 1. Draft the necessary entries to charge the materials and labor costs to the appropriate work in process accounts, to apply factory overhead to work in process, and to record the transfer of costs from one department to another. 2. Prepare a statement of cost of goods manufactured for the month ended July 31 . Rebiem ST \begin{tabular}{|c|c|c|c|c|} \hline \multicolumn{5}{|c|}{\begin{tabular}{l} Premier Products Inc. \\ Cost of Production Summary-Finishing \\ For the Month Ended July 31, 2016 \end{tabular}} \\ \hline Cost of goods received from Shaping during month & & & $ & 55,000 \\ \hline \multicolumn{5}{|l|}{ Cost of production for month: } \\ \hline Materials & $ & 6,300 & & \\ \hline Labor & & 4,200 & & \\ \hline Factory overhead & & 6,300 & & \\ \hline Total & & & & 16,800 \\ \hline Total costs to be accounted for & & & $ & 71,800 \\ \hline \multicolumn{5}{|l|}{ Unit output for month: } \\ \hline Finished and transferred to finished goods during month & & & & 4,000 \\ \hline Equivalent units of work in process, end of month & & & & 200 \\ \hline Total equivalent production & & & & 4,200 \\ \hline \multicolumn{5}{|l|}{ Unit cost for month: } \\ \hline Materials & & & $ & 1.50 \\ \hline Labor & & & & 1.00 \\ \hline Factory overhead & & & & 1.50 \\ \hline Total & & & $ & 4.00 \\ \hline \multicolumn{5}{|l|}{ Inventory costs: } \\ \hline \begin{tabular}{l} Costs of goods finished and transferred to finished goods: \\ Unit cost of Cutting, Shaping, and Finishing \\ combined \end{tabular} & &, 000.00 & & \\ \hline Units transferred to finished goods during month & & 16,000 & $ & 66,000 \\ \hline Cost of work in process, end of month: & & & & \\ \hline Costs in Cutting & $ & 4,000 & & \\ \hline Costs in Shaping & & 1,000 & & \\ \hline Costs in Finishing & & 800 & & 5,800 \\ \hline Total production costs accounted for & & & $ & 71,800 \\ \hline \end{tabular} Journal entries and cost of goods manufactured statement required: Using the data in P5-7: 1. Draft the necessary entries to charge the materials and labor costs to the appropriate work in process accounts, to apply factory overhead to work in process, and to record the transfer of costs from one department to another. 2. Prepare a statement of cost of goods manufactured for the month ended July 31
