Two Departments, Journal Entries with Supporting CalculationsWeighted Average Method

Parker Laboratories, Inc., produces one of its products in two successive departments. All materials are added at the beginning of the process in Department 1; no materials are used in Department 2. Conversion costs are incurred evenly in both departments. August 1, 2019, inventory account balances are as follows:

Materials inventory $15,000
Work in process- Department 1 (6,000 units, 25% finished)
Direct materials	11,500
Conversion costs	18,750
Work in process - Department 2 (3,500 units, 35% finished)	41,000
Finished goods inventory (4,000 units @ $12.50)	50,000

During August, the following transactions occurred: 1. Purchased material on account, $58,000. 2. Placed $63,300 (16,000 units) of materials into process in Department 1. 3. Distributed total payroll costs: $83,770 of direct labor to Department 1, $42,300 of direct labor to Department 2, and $19,100 of indirect labor to Manufacturing Overhead. 4. Incurred other actual manufacturing overhead costs, $21,200. (Credit Other Accounts.) 5. Applied overhead to the two processing departments: Department 1, $21,080, Department 2, $17,900 6. Transferred 20,000 completed units from Department 1 to Department 2. The 2,000 units remaining in Department 1 were 30% completed with respect to conversion costs. 7. Transferred 15,000 completed units from Department 2 to Finished Goods Inventory. The 8,500 units remaining in Department 2 were 40% completed with respect to conversion costs. 8. Sold 13,000 units on account at $24 per unit. Parker uses weighted average inventory costing for finished goods inventory.

a. Record the August transactions in general journal form for Department 1 and Department 2. Hint: Complete the product cost reports for Departments 1 and 2 before entering journal entries for transactions 6, 7, and 8.

b. Prepare a product cost report (with its supporting calculations) for Department 1. Round average cost per equivalent unit to two decimal places. Use rounded answers for subsequent calculations. Round other answers to the nearest whole number.

c. Prepare a product cost report (with its supporting calculations) for Department 2. Round average cost per equivalent unit to two decimal places. Use rounded answers for subsequent calculations. Round other answers to the nearest whole number.

d. Determine the balances remaining in the Materials Inventory account, in each work in process account, and in the Finished Goods Inventory account.

Enter answers in the order of your journal entries in part a., using the first available answer box in the appropriate debit or credit column.