PROBLEM 3-17. Journal Entries in Process Costing [LO 1] Douglas Basket produces a specialty basket used by a gift basket company, Yours Truly Gifts. Douglas uses a just-in-time system and has very little inventories of material, work in process, or finished goods. Since the balances are so small, the company carries them at zero for purposes of accounting.

During August, the company produced and shipped 150,000 baskets at a cost of $1.75 per basket. The cost was made up of 55 percent material cost, 25 percent labor cost, and 20 percent manufacturing overhead.

. TMobile e 15:47 a 28% [Dr Illrttnul y 118 for its product using a process costing system. Direct materials are added at the beginning ofthe production process, and conversion occurs evenly throughout the production process. Below is information related to May. Unit Information Work in Process, May 1 05% complete) 40.000 Units started during May 90,000 Total to account for 130.000 Units completed 110,000 Units in ending WIP {45% complete} 20,000 Units accounted for 130,000 Cost Information Direct Material Conversion Total Work in ProCess, May 1 $43,000 $340,300 $383,300 Cost incurred during May 87,000 733,080 820,080 REQUIRED a. Compute the cost per equivalent unit for material and for conversion costs for May. b. Compute the costs of units completed during May. c. Compute the cost of work in process at the end oFMay. d. Prepare a journal entry to record the cost of goods completed. PROBLEM 3-17. Journal Entriti in Process Gosling [LO 1] Douglas Basket produces a specialty basket used by a gift basket company, Yours Truly Gifts. Douglas uses a justintime system and has very little inventories ofrnaterial, Work in process, or nished goods. Since the balances are so small, the company carries them at zero for purposes of accounting. During August, the company produced and shipped 150.000 baskets at a cost of $1.75 per basket. The cost was made up of55 percent material cost. 25 percent labor cost, and 20 percent manufacturing overhead REQUIRED Prepare journal entries to record: a. The issuance of direct material. b. The cost ofdirect labor [use wages payable). c. The application of manufacturing overhead. d. The completion of units in process and their transfer to nished goods. 1:. C ost of goods sold. PROBLEM 3-18. You Get What You Measure! The Plastic Glow Company makes glow sticks. It uses a process costing system and has had a justintime inventory policy. The piant has a capacity to pr 0,000,000 units a year but currently operates at 300,000,000 units irect