Purelife Dairy produces an organic butter that is sold by the pound. The production of the butter begins in the Churning Department. Purelife Dairy's Data for the Chumning Department for January follows: (Click the icon to view the data from January.) Purelife 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 Requirement 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.) (Record debits first, then credits. Exclude explanations from any journal entries.) Journal Entry Accounts Date Debit Credit Requirement 2. What joumal entry is needed at the end of the month to transfer the cost of the butter out of the Churing Department and into the next department, the Forming Department? (Record debits first, then credits. Exclude explanations from any journal entries.) Journal Entry Accounts Date Debit Credit Requirement 3. Post the journal entries to the "Work in Process Inventory - Churning Department" T-account. Work In Process Inventory-Churning 90,000 units 1,900,000 units 210,000 units 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 $ Beginning balance, WIP, January 1 558,300 283,800 842,100 Manufacturing costs incurred during January: Direct materials used $ 1,770,000 Direct labor 15,000 540,000 Manufacturing overhead $ 2,325,000 Total manufacturing costs entered into production during January Purelife Dairy Churning Department Month Ended January 31 Production Cost Report Flow of Equivalent Units Physical Direct Conversion Flow of Production Units Materials Costs Units to account for: Beginning work in process, January 1 Plus: Started in production during January Total physical units to account for Units accounted for: 90,000 1,900,000 1,990,000 Completed and transferred out 1,780,000 210,000 1,780,000 210,000 1,780,000 84,000 Plus: Ending work in process, January 31 1,990,000 Total physical units accounted for 1,990,000 1,864,000 Total equivalent units Direct Conversion Materials Costs Total Costs to Account for and Cost per Equivalent Unit Beginning work in process $ 558,300 $ 1,770,000 283,800 555,000 Plus: Costs added during January Total costs to account for 2,328,300 1,990,000 838,800 1,864,000 Divided by: Total equivalent units $ 1.17 $ 0.45 Cost per equivalent unit Direct Conversion Materials Costs Total Assignment of total costs: Completed and transferred out: Equivalent units completed and transferred out Multiplied by: Cost per equivalent unit Costs assigned to units completed and transferred out 1,780,000 1.17 $ 1,780,000 0.45 $ $ 2,082,600 $ 801,000 $ 2,883,600 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 31 210,000 1.17 $ 84,000 0.45 $ $ 245,700 $ 283,500 37,800 $ 3,167,100 Total costs accounted for
