Question
The Login Home Paint company produces paints and sells them in gallons. The company manufactures the paints in two production departments. 1. FAB BASE
The Login Home Paint company produces paints and sells them in gallons. The company manufactures the paints in two production departments. 1. FAB BASE AND 2. FINISHING. White paint is the basis for all the company's paints. This is mixed in the FAB Base Department, with the raw material ingredients Pigmentation is then added to the white base and the colors are obtained, then it is packaged in gallons. Finally, the gallons are labeled and packed in the Finishing Department: In addition, the company carried out the followingTransactions 1.1 request by requisition Raw Material to use in production in both departments. Base Department $851,000. Finish $629,000 2. Direct Labor costs incurred. BD $330,000, Finishing Dept: $270,000 3. Apply MHOV Base Dept 665,000. Finishing Department 405,000 4. Transfers white paint base from BD to FD, $1,850,000 5. Transfers finished, ready-to-delivery paintings from FD to Finished Goods, $3,200,000 a. Prepare journal entries to record transactions b. Post journal entries to T accounts for Raw Materials, WP- Base Dept, WP-FD, MOVH, Einidhed Goods, WP-Base DER has an initial balance of $150,000 WP-FD-has a starting balance of 70,000 c. Determine the ending balances of the Inventory accounts d. Prepare cost reconciliation report.
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