Question
Tulip Company uses weighted average process costing to determine the cost of units. They produce their finished product in two processing departments: Assembly and Finishing.
Tulip Company uses weighted average process costing to determine the cost of units. They produce their finished product in two processing departments: Assembly and Finishing. The following information is available for the month of November:
Assembly Department:
The beginning work in process inventory was $76,640 ($8,240 direct material cost and $68,400 conversion costs) and consisted of 5,300 units.
During November, an additional 14,200 units were started into production. During November, a total of 16,800 units were completed and transferred to the Finishing Department.
The ending work in process inventory consisted of 2,700 units which were 30% complete as to conversion costs as of the end of November.
The following costs were incurred during November: direct materials $151,660, direct labor $90,000; and factory overhead $95,184.
Direct materials are added at the beginning of the process in the Assembly Department and conversion costs are incurred evenly throughout the production process.
Finishing Department:
The beginning work in process inventory was $165,355 ($71,055 transferred-in costs and $94,300 conversion costs) and consisted of 3,100 units.
During November, a total of 17,500 units were completed and transferred out to Finished Goods Inventory.
The ending work in process inventory consisted of 2,400 units which were 80% complete as to conversion costs as of the end of November.
The following costs were incurred during November: direct materials $204,750, direct labor $110,000, and factory overhead $108,362.
Direct materials are added at the end of the process in the Finishing Department and conversion costs are incurred evenly throughout the production process.
REQUIRED:
- Prepare a production report for the Assembly Department for the month of November in the attached workpapers.
- Prepare the general journal entry to record the transfer of units from the Assembly Department to the Finishing Department for November in the attached workpapers.
- Prepare a production report for the Finishing Department for the month of November in the attached workpapers.
- Prepare the general journal entry to record the transfer of units from the Finishing Department to Finished Goods Inventory for November in the attached workpapers.
- Enter the appropriate cost data in the Work in Process T-accounts for the Assembly Department and for the Finishing Department for the month of November in the attached workpapers.
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