Question 1:

Sharma Company has three process departments: Mixing, Encapsulating, and Bottling. At the beginning of the year, there were no work-in-process or finished goods inventories. The following data are available for the month of July:

Department		Manufacturing Costs Added*		Ending Work in Process
Mixing		$88,700		$20,200
Encapsulating		77,140		17,570
Bottling		72,450		3,380

*Includes only the direct materials, direct labor, and the overhead used to process the partially finished goods received from the prior department. The transferred-in cost is not included.

Required:

Question Content Area

1. journal entries that show the transfer of costs (a) from Mixing to Encapsulating, (b) from Encapsulating to Bottling, and (c) from Bottling to finished goods inventory.

a.	MaterialsOverheadWork in Process-BottlingWork in Process-EncapsulatingWork in Process-Mixing	- Select -
	Finished GoodsMaterialsWork in Process-BottlingWork in Process-EncapsulatingWork in Process-Mixing		- Select -
b.	Finished GoodsMaterialsWork in Process-BottlingWork in Process-EncapsulatingWork in Process-Mixing	- Select -
	Finished GoodsMaterialsWork in Process-BottlingWork in Process-EncapsulatingWork in Process-Mixing		- Select -
c.	Finished GoodsWork in Process-BottlingWork in Process-EncapsulatingWork in Process-Mixing	- Select -
	Finished GoodsWork in Process-BottlingWork in Process-EncapsulatingWork in Process-Mixing		- Select -

Question Content Area

2. Post the entries made in Requirement 1 into the T-accounts below. The costs added from the data provided have been entered in the T-accounts.

WIPMixing
	88,700	fill in the blank a00caef8df89fd4_1
	20,200

WIPEncapsulating
	fill in the blank a00caef8df89fd4_2	fill in the blank a00caef8df89fd4_3
	77,140
	17,570

WIPBottling
	fill in the blank a00caef8df89fd4_4	fill in the blank a00caef8df89fd4_5
	72,450
	3,380

Finished Goods
	fill in the blank a00caef8df89fd4_6

Question 2:

Softkin Company manufactures sun protection lotion. The Mixing Department, the first process department, mixes the chemicals required for the repellant. The following data are for the current year:

Work in process, January 1
Gallons started	350,000
Gallons transferred out	294,000
Direct materials cost	$700,000
Direct labor cost	$1,377,600
Overhead applied	$2,066,400

Direct materials are added at the beginning of the process. Ending inventory is 90 percent complete with respect to direct labor and overhead.

Required:

Prepare a production report for the Mixing Department for the current year. If an amount is zero, enter "0".

Softkin Company

Mixing Department

Production Report for Current Year

Units to account for:	Number of Units
Ending work in processUnits completedUnits in beginning WIPUnits in ending WIPUnits to account forUnits completed	Units completed
Ending work in processUnits completedUnits in ending WIPUnits startedUnits to account forUnits in ending WIP	Units in ending WIP
Total units to account for	fill in the blank 5

Units accounted for:	Equivalent Units
	Physical Flow	Direct Materials	Conversion Costs
Ending work in processUnits completedUnits in beginning WIPUnits startedUnits to account for	- Select -	- Select -	- Select -
Units completedUnits in beginning WIPUnits in ending WIPUnits startedUnits to account for	- Select -	- Select -	- Select -
Total units accounted for	fill in the blank 14	blank	blank
Work completed	blank	fill in the blank 15	fill in the blank 16

Costs to account for:	Direct Materials	Conversion Costs	Total
Costs in beginning WIPCosts in ending work in processCost per equivalent unitCosts to account for	$- Select -	$- Select -	$- Select -
Costs incurred during the periodCosts in ending work in processCost per equivalent unitCosts to account for	- Select -	- Select -	- Select -
Total costs to account for	$fill in the blank 25	$fill in the blank 26	$fill in the blank 27
Cost per equivalent unit	$fill in the blank 28	$fill in the blank 29	$fill in the blank 30
Costs accounted for:
Costs added by departmentCosts in beginning WIPUnits completedUnits in beginning WIPUnits started	$- Select -
Beginning work in processCosts added by departmentCosts in beginning WIPCost per equivalent unitEnding work in process	- Select -
Total costs accounted for	$fill in the blank 35