Question 5

Alpha Company has two production departments: Cutting and Assembly. During July, the following transaction occurred.

1.

Purchased $42,500 of raw materials on account.

2.

Incurred $60,000 of factory labor. (Credit Factory Wages Payable.)

3.

Incurred $70,000 of manufacturing overhead; $40,000 was paid and the remainder is unpaid.

4.

Requisitioned materials for Cutting $15,700 and Assembly $8,900.

5.

Used factory labor for Cutting $33,000 and Assembly $27,000.

6.

Applied overheadat the rate of $18 per machine hour. Machine hours were Cutting1,680 and Assembly1,720.

7.

Transferred goods costing $67,600 from the Cutting Department to the Assembly Department.

8.

Transferred goods costing $134,900 from Assembly to Finished Goods.

9.

Sold goods costing $150,000 for $190,000 on account.

Journalize the above transactions.

Question 6

The MixingDepartment of Bravo Company has the following cost and production data for the month of April.

Costs:

Work in process, April 1

Direct materials: 100% complete

$100,000

Conversion costs: 20% complete

70,000

Cost of work in process, April 1

$170,000

Costs incurred during production in April

Direct materials

$800,000

Conversion costs

365,000

Costs incurred in April

$1,165,000

Units transferred out totaled17,000. Ending work in process was1,000units that are 100% complete, as to materials and40% complete, as to conversion costs.

Compute the equivalent units of production for

(1) materialscosts for the month of April.

(2) conversion costs for the month of April

Question 7

The MixingDepartment of Bravo Company has the following cost and production data for the month of April.

Costs:

Work in process, April 1

Direct materials: 100% complete

$100,000

Conversion costs: 20% complete

70,000

Cost of work in process, April 1

$170,000

Costs incurred during production in April

Direct materials

$800,000

Conversion costs

365,000

Costs incurred in April

$1,165,000

Units transferred out totaled17,000. Ending work in process was1,000units that are 100% complete, as to materials and40% complete, as to conversion costs.

Using the results of the equivalents units found in FIB 1, compute unit cost per conversion cost