Question
Preparing a production cost report, beginning WIP, no costs transferred in; journal entries Roan paper Co. produces paper used by wallpaper manufacturers. Roan's 4 stage
Preparing a production cost report, beginning WIP, no costs transferred in; journal entries
Roan paper Co. produces paper used by wallpaper manufacturers. Roan's 4 stage process includes mixing, cooking, rolling, and cutting. On March 1, the Mixing Department had 300 rolls of paper in process. During March, the mixing department completed the mixing process for those 300 rolls and also started and completed the mixing process for an additional 4200 rolls of paper. The department started but did not finish the mixing process for an additional 500 rolls, which were 20% complete with respect to both direct materials and conversion work at the end of march. Direct materials and conversion costs are incurred evenly throughout the mixing process. The mixing department compiled the following data for march:
- Beginning inventory, March1. Direct Materials = 350, Direct Labor 245, Manufacturing overhead allocated= 200, Total costs= 795
- Costs added during march Direct materials= 4940, Direct labor = 3000, MOH= 3225, Total costs=11165
- Total costs Direct materials 5290, Direct Labor= 3245 MOH= 3425 Total costs = 11960
Requirements
- Prepare a production cost report for the mixing department for march. The company uses the weighted- average method
- Journalize all transactions affecting the company's mixing process during March. Assume Labor costs are accrued and not yet paid.
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