Reed Paper Co. produces the paper used by wallpaper manufacturers. Reed's four-stage process includes mixing, cooking, rolling, and cutting. (Click the icon to view additional information.) The Mixing Department compiled the following data for March: E: (Click the icon to view the data.) Read the requirements. ......... Requirement 1. Prepare a production cost report for the Mixing Department for March using the FIFO method. The Mixing Department beginning work in process of 350 units is 60% complete as to both direct materials and conversion costs. Round equivalent unit of production costs to four decimal places. Round all other costs to the nearest whole dollar. (Complete all input fields. Enter a "0" for any zero balances. Round equivalent unit of produd costs to four decimal places. Round all other costs to the nearest whole dollar. Abbreviations used: EUP = equivalent units of production; WIP = work-in-process.) Reed Paper, Co. Production Cost Report - Mixing Department Data table Month Ended March 31 Equivalent Units Direct Direct Manufacturing Total Physical Direct Conversion Materials Labor Overhead Allocated Costs UNITS Units Materials Costs Beginning inventory, Mar. 1 $ 450 $ 450 $ 190 $ 1.090 Units to account for: 5,334 3,551 3,280 12.165 Costs added during March Beginning work-in-process 350 $ 5,784 $ 4,001 $ 3,470 $ 13,255 Total costs Started in production 4950 CENTER Total units to account for 53007 Print Done On March 1, the Mixing Department had 350 rolls of paper in process. During March, the Mixing Department completed the mixing process for those 350 rolls and also started and completed the mixing process for an additional 4,350 rolls of paper. The department started but did not finish the mixing process for an additional 600 rolls, which were 20% complete with respect to both direct materials and conversion work at the end of March. Direct materials and conversion costs are incurred evenly throughout the mixing process. 1. Prepare a production cost report for the Mixing Department for March using the FIFO method. The Mixing Department beginning work in process of 350 units is 60% complete as to both direct materials and conversion costs. Round equivalent unit of production costs to four decimal places. Round all other costs to the nearest whole dollar. 2. Journalize all transactions affecting the company's mixing process during March. Assume labor costs are accrued and not yet paid. Physical Equivalent Units Direct Conversion Materials Costs Units UNITS Units to account for Beginning work-in-process Started in production 350 4950 5300 Total units to account for 350 4350 Units accounted for: Beginning work-in-process Started and completed Transferred to Cooking Ending work-in-process 4350 4350 4700 600 5300 Total units accounted for Direct Conversion Total Cost COSTS Materials Costs Costs per Unit Costs to account for: Beginning work-in-process 450 Costs added during the period 5334 Total costs to account for 5784 5334 Costs added during the period Divided by: EUP this period Cost per equivalent unit Costs accounted for: Beginning work-in-process Costs to complete beginning WIP Total costs for beginning WIP Started and completed Transferred to Cooking Ending work-in-process Total costs accounted for Requirement 2. Journalize all transactions affecting the company's mixing process during March. Assume labor costs are accrued and not yet paid. (Record debits first, then credits. Exclude explanations from any joumal entries.) Begin with the journal entry to record the assignment direct materials to the Mixing Department. Do not record the assignment of direct labor or the allocation of manufacturing overhead with this entry. We will prepare those entries separately in the following steps. Date Accounts Debit Credit Mar. 31 Work-in-Process Inventory-Mixing Raw Materials Inventory Prepare the journal entry to record the assignment of direct labor to the Mixing Department. Assume labor costs are accrued and not yet paid. Date Accounts Debit Credit Mar. 31 Work-in-Process Inventory-Mixing Raw Materials Inventory Prepare the journal entry for the allocation of manufacturing overhead to the Mixing Department. Date Accounts Debit Credit Mar. 31 Work-in-Process Inventory-Mixing Manufacturing Overhead Prepare the journal entry to record the cost of the units transferred out of the Mixing Department. Date Accounts Debit Credit Mar. 31 Finished Goods Inventory Work-in-Process Inventory-Mixing
