Preparing a Production Cost Report
Alexander Carpet manufactures broadloom carpet in seven processes: spinning, dyeing, plying, spooling,
tufting, latexing, and shearing. In the Dyeing Department, direct materials (dye) are added at the
beginning of the process. Conversion costs are incurred evenly throughout the process. Information
for July 2016 is below:
	UNITS
	Beginning Work-in-Process Inventory	75	rolls
	Transferred in from Spinning in July	560	rolls
	Completed during July	500	rolls
	Ending Work-in-Process Inventory (80% complete for conversion)	135	rolls
	COSTS
	Beginning Work-in-Process Inventory (transferred in costs $4,400;	$11,174
	materials costs, $1,575; conversion costs, $5,199)
	Transferred in from Spinning Department	21,000
	Materials costs added during July	11,760
	Conversion costs added during July (manufacturing wages, $8,445;
	manufacturing overhead allocated, $43,508)	51,953
REQUIREMENTS:
1.)	Prepare a production cost report for Alexander's Dyeing Department for July.
2.)	Prepare journal entries for all transactions affecting Carrie's Dyeing Department during July.