Question: The Yellow Pine Furniture Company produces tables ...

The Yellow Pine Furniture Company produces tables in two departments. Assembly and Finishing. In the Assembly Department, all direct materials (wood) are entered into production at the start of the process. Various machines cut the raw wood into appropriate pieces and workers assemble the pieces into tables. Thus, in the Assembly Department, all direct labor and overhead is incurred evenly throughout the process. The Finishing Department then takes the tables, applies numerous coats of stain and varnish, and finally buffs and packages the completed tables. Thus, in the Finishing Department, direct materials are added evenly throughout the first half of the process, while the direct labor is added evenly throughout the last half. Overhead is incurred evenly over the entire finishing process. Yellow Pine uses process costing and had the following cost and production information available for January, its first month of operation:

AssemblyFinishing

DepartmentDepartment

Direct materials cost$32,000$ 8,200

Direct labor cost12,00016,000

Manufacturing overhead applied 15,000 8,400

Total manufacturing costs$59,000$32,600

Units in beginning work in process00

Units started800600

Units completed and transferred out600450

Units in ending work in process200150

Percentage complete ending work in process30%60%

During the month of January, 380 tables were sold and shipped to customers at a retail price of $400 each.

Instructions

a. For January, calculate the equivalent units produced by the Assembly Department and the Finishing Department for the three cost categories direct materials, direct labor, and manufacturing overhead.

b. Calculate the assembly, finishing, and total cost of producing a table during January.

c. For the month of January, prepare the journal entries summarizing the manufacturing costs charged to the Assembly Department and the Finishing Department.

d. For January, prepare the month-end journal entries to transfer the costs of tables moved from the Assembly Department to the Finishing Department and from the Finishing Department to Finished Goods Inventory.

e. Prepare the entries to record the sales made in January and the corresponding reduction at Finished Goods Inventory.

f. Using T accounts, calculate the ending balances in the Work in Process accounts and Finished Goods Inventory.