Question 1-Process Costing (Weighted-Average Method): Partners in Crime Paint Company uses the weighted-average method to account for costs of production in its process costing system. Partners in Crime manufactures its base paint in two separate departments: Mixing and Packaging. The following information is for the Mixing Department (the first production department in its production process) for the month of March:

	Units (gallons)					Percent Complete with Respect to DM	Percent Complete with Respect to Conversion Costs (DL+OH)
Beginning work in process inventory		35,000				100%		75%
Units started during March		97,000
Units completed and transferred to the Packaging Department during March		80,000				100%		100%
Ending work in process inventory		52,000				80%		60%

The accounting records for the Mixing Department indicate the following additional information:

• Costs in beginning WIP Inventory-Mixing Department totaled $62,696, broken down as follows:
  • $32,112 in DM costs
  • $30,584 in conversion costs
• Costs incurred during the month of March for the Mixing Department totaled $394,000, broken down as follows:
  • $250,000 in actual DM costs
  • $144,000 in conversion costs ($60,000 in DL costs; $84,000 in applied OH costs (applied based on 140% of DL costs))

Journal Entries: Prepare journal entries for the month of March to record the below transactions (make sure to use proper journal entry formatting and include a brief description of each entry).

1. Raw materials purchases (on credit). Assume the firm purchased $282,000 worth of raw materials in March.
2. Direct materials used in production: Mixing Department: $250,000; Packaging Department: $16,500.
3. Direct labor used in production (assume not paid in Cash, use the Factory Wages Payable account for the credit): Mixing Department: $60,000; Packaging Department: $31,800.
4. Overhead costs applied: Mixing Department: $84,000; Packaging Department: $44,520.
5. Actual Indirect materials used: $16,200.
6. Actual Indirect labor used (assume did not pay Cash, use the Factory Wages Payable account for the credit): $23,700.
7. Actual other overhead costs incurred: $88,750 (credit the Cash account)
8. Transfer of costs of units transferred out from the Mixing Department to the Packaging Department (amount calculated in A.3.a. above).
9. Transfer of costs of completed units transferred out from the Packaging Department to Finished Goods Inventory. Assume the costs of these finished goods transferred out from the Packaging Department to Finished Goods Inventory during March was $194,200.
10. Transfer of costs from Finished Goods Inventory to COGS. Assume the costs of the units sold transferred from Finished Goods to COGS was $119,100.
11. Assignment of any underapplied or overapplied overhead to the Cost of Goods Sold account (Assume the amount is not material).