Question
Reed PaperReed Paper Co. produces the paper used by wallpaper manufacturers. ReedReed's four-stage process includes mixing, cooking, rolling, and cutting. During MarchMarch, the Mixing Department
Reed PaperReed Paper
Co. produces the paper used by wallpaper manufacturers.
ReedReed's
four-stage process includes mixing, cooking, rolling, and cutting. During
MarchMarch,
the Mixing Department started and completed mixing for
4 comma 5204,520
rolls of paper. The department started but did not finish the mixing for an additional
500500
rolls, which were
20 %20%
complete with respect to both direct materials and conversion work at the end of
MarchMarch.
Direct materials and conversion costs are incurred evenly throughout the mixing process. The Mixing Department incurred the following costs during
MarchMarch:
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Requirement 1. Prepare a production cost report for the Mixing Department for
MarchMarch.
(Complete all answer boxes. Enter a "0" for any zero balances. Round all cost per unit amounts to the nearest cent and all other amounts to the nearest whole dollar. Abbreviation used: EUP = equivalent units of production.)
Reed Paper, Co. | |||||
Production Cost Report-Mixing Department | |||||
Month Ended March 31 | |||||
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| Equivalent Units |
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| Whole | Transferred | Direct | Conversion |
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UNITS | Units | In | Materials | Costs |
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Units to account for: |
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Beginning work-in-process | 0 |
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Started in production |
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Total units to account for |
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Units accounted for: |
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Beginning work-in-process | 0 | n/a |
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Completed and transferred out | 5020 | n/a |
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Total units accounted for | 5020 | n/a |
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| Transferred | Direct | Conversion | Total |
COSTS | In | Materials | Costs | Costs |
Costs to account for: |
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| n/a |
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Total costs to account for | n/a |
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Cost per equivalent unit | n/a |
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Costs accounted for: |
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Total costs accounted for | n/a |
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Requirement 2. Journalize all transactions affecting the company's mixing process during
MarchMarch,
including those already posted.
Begin with a summary journal entry to record the assignment of direct materials, direct labor, and the allocation of manufacturing overhead to the Mixing Department. (Prepare a single compound journal entry. Record debits first, then credits. Exclude explanations from any journal entries.)
Date | Accounts | Debit | Credit | |
Mar. | 31 |
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Prepare the journal entry to record the cost of the units completed and transferred out of the Mixing Department.
Date | Accounts | Debit | Credit | |
Mar. | 31 |
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