Step-by-Step Painting prepares and packages paint products Step-by-Step Painting has two departments Blending and Packaging Direct materials are added at the beginning of the blending process (dyes) and at the end of the packaging process (cans). Data ham the month of May for the ending Department (Cck the icon to view the stata om May) Step-by-Step Painting completed the following production cost report for sending Department for added evenly troughout each process. The company uses the weighted average Read the ment Requirement 1. Prapare the journal entries to record the assignment of direct materials and dect labor and the allocation of manufacturing verhead to the lending Department. Als prepare the journal entry to record the costs of the gallons completed and transferred out to the Packaging Department Assume labor costs are accrued and not yet paid Record debts first, then credits Excade explanations from any joumal Begin with the journal entry to recent the assignment of direct materials to the Danding Department Donated the assignment of direct labor or the allocation of mandacturing overhead with this anty We will prepare the antiss saparatuly in the foowing steps Date May 31 Accounts Debit Credit duc beg of N e assig e Pack direct Data table D 1 - X Gallons Beginning Work-in-Process Inventory Started in production 0 gallons 9,500 gallons Completed and transferred out to Packaging in May 6,000 gallons Ending Work-in-Process Inventory (30% of the way through the blending process) 3,500 gallons Costs Beginning Work-in-Process Inventory Costs added during May: Direct materials Direct labor Manufacturing overhead allocated $ 0 D 5,700 ar 2,085 2,004 Print Done X P O 154 M 1 Data table Beginning Work-in-Process Inventory Started in production 0 gallons 9,500 gallons Completed and transferred out to Packaging in May 6,000 gallons Ending Work-in-Process Inventory (30% of the way through the blending process) 3,500 gallons Costs Beginning Work-in-Process Inventory Costs added during May: Direct materials Direct labor Manufacturing overhead allocated Total costs added during May Print Done EA 69 $ 5,700 2,085 2,004 9,789 0 - > st Reference es and packages p materials are adde ans). Data from the ata from May.) Step-by-Step Painting Production Cost Report Blending Department (Partial) urnal entries to reco and transferred out t ecord the assignme ng steps. Accounts COSTS Costs to account for Beginning work-in-process Costs added during the period Total costs to account for Divided by: Total EUP Cost per equivalent unit Month Ended May 31 Direct Conversion Total Materials Costs Costs 0 $ 0 $ 0 5,700 4,089 9,789 5,700 4,089 9,789 9,500 7,050 S 0.60 $ 0.58 er Reference COSTS Materials Costs Costs Costs to account for Beginning work-in-process 0 $ 0 $ 0 Costs added during the period 5,700 4,089 9,789 Total costs to account for 5,700 4,089 9,789 Divided by: Total EUP 9,500 7,050 $ 0.60 $ 0.58 Cost per equivalent unit Costs accounted for Completed and transferred out 10 $ 3,600 $ 3,480 $ 7,080 2,100 609 2,709 Ending work-in-process $ 5,700 $ 4,089 $ 9,789 Total costs accounted for Print Done - X Requirements 1. Prepare the journal entries to record the assignment of direct materials and direct labor and the allocation of manufacturing overhead to the Blending Department. Also, prepare the journal entry to record the costs of the gallons completed and transferred out to the Packaging Department. Assume labor costs are accrued and not yet paid. 2. Post the journal entries to the Work-in-Process Inventory-Blending T-account. What is the ending balance? 3. What is the average cost per gallon transferred out of the Blending Department into the Packaging Department? Why would the company managers want to know this cost? Print Done - X Step-by-Step Painting prepares and packages paint products. Step-by-Step Painting has two departments Blending and Packaging Direct materials are added at the beginning of the blending process (dyes) and at the end of the packaging process (cans). Data from the month of May for the Blending Department are as follows (Click the icon to view the data from May.) Step-by-Step Painting compl the month of May (Click the icon to view the a Conversion costs are added ev method Read the requirements. Prepare the journal entry for the allocation of manufacturing overhead to the Blending Department Date May 31 Accounts Debit Credit Next, prepare the journal entry to record the costs of the gallons completed and transferred out to the Packaging Department. Step-by-Step Painting prepares and packages paint products. Step-by-Step Painting has two departments Blending and Packaging. Direct materials are added at the beginning of the blending process (dyes) and at the end of the packaging process (cans) Data from the month of May for the Blending Department are as follows: (Click the icon to view the data from May) Step-by-Step Painting completed the following product the month of May (Click the icon to view the assignment of costs.) Conversion costs are added evenly throughout each proc method. Read the requirements Requirement 2. Post the journal entries to the Work-in-Process Inventory-Blending T-account What is the ending balance? Post the entries using the appropriate descriptions as posting references. Denote the ending balance as "Bal" Work-in-Process Inventory-Blending Beg Bal Step-by-Step Painting prepares and packages paint products Step-by-Step Painting has two departments: Blending and Packaging Direct materials are added at the beginning of the blending process (dyes) and at the end of the packaging process (cans) Data from the month of May for the Blending Department are as follows: (Click the icon to view the data from May) Step-by-Step Painting completed the following production cost report for its Blendi the month of May (Click the icon to view the assignment of costs) Conversion costs are added evenly throughout each process. The company uses the method Road the requirements Requirement 3. What is the average cost per gallon transferred out of the Blending Department into the Packaging Department? Why would the company managers want to know this cost? Determine the formula, then enter the amounts to calculate the average cost per gallon transferred out of the Blending Department (Round your answer to the nearest cant.) Why would the company managers want to know this cost? Average cost per gallon OA. Managers use the cost per gallon for extemal financial reporting-specifically to calculate the ending inventory balances on the Balance Sheet Why would the company managers want to know this cost OA. Managers use the cast per palon for extemal financial reporting-specifically to calculate the ending inventory balances on the Balance Sheet O Managers use the cost per gallon for extemal financial reporting-specificaty to calculate the Cost of Goods Seld on the income att CC Managers would compare the average cost per gaboo against that budgeted costs to determine whether the costs of the blending process remain under control budgeted costs are higher than the actual average cost per gaten, then the managers have done a good job controlling costs in contrast if the ludgeted costs are lower than the actual average cast per gallon managers will investigate the reason for th higher-than-expected costs in an effort to regain control over co OD. All of the above are reasons why management would be interested in this cost per unit for gallons completed and translened out to Finished Goods inventory