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Woodson Dairy produces an organic butter that is sold by the pound. The production of the butter begins in the Churning Department. Woodson Dairy's Data

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Woodson Dairy produces an organic butter that is sold by the pound. The production of the butter begins in the Churning Department. Woodson Dairy's Data for the Chumning Department for January follows: Click the icon to view the data from January) Woodson Dairy prepared the following production cost report for January for the Chumning Department: Click the icon to view the January production cost report) Read the requirements Requirement 1. What joumal entry() would have been made during the month to record manufacturing costs (Use Wages Payable as the credit for the direct labor costs) (Record debit first the credits. Exch antes Journal Entry Date Accounts Dobit Credit 1. What journal entry(s) would have been made during the month to record manufacturing costs? (Use Wages Payable as the credit for the direct labor costs.) 2. What journal entry is needed at the end of the month to transfer the cost of the butter out of the Churning Department and into the next department, the Forming Department? 3. Post the journal entries to the "Work in Process Inventory - Churning Department" T-account Print Done UITECE CUITVUSTOTI Materials Costs $ Total Costs to Account for and Cost per Equivalent Unit Beginning work in process Plus: Costs added during January Total costs to account for Divided by: Total equivalent units Cost per equivalent unit 110,000 $ 1,730,000 24,000 568,000 1,840,000 1,600,000 592,000 1,480,000 1.15 $ 0.40 Direct Conversion Costs Materials Total Assignment of total costs: Completed and transferred out: Equivalent units completed and transferred out Multiplied by: Cost per equivalent unit Costs assigned to units completed and transferred out 1,400,000 1.15 S 1,400,000 0.40 $ 1,610,000 $ 560,000 $2,170,000 Ending work in process: Equivalent units in ending work in process, January 31 Multiplied by: Cost per equivalent unit Costs assigned to units in ending work in process, January 31 Total costs accounted for 200,000 1.15 $ 80,000 0.40 $ 230,000 $ 32,000 262.000 $ 2.432.000 Print Done Woodson Dairy Churning Department Month Ended January 31 Production Cost Report Flow of Equivalent Units Physical Direct Conversion Flow of Production Units Materials Costs Units to account for: Beginning work in process, January 1 100,000 Plus: Started in production during January 1,500,000 Total physical units to account for 1,600,000 Units accounted for: Completed and transferred out 1.400,000 1.400.000 1,400,000 Plus: Ending work in process, January 31 200,000 200,000 80,000 Total physical units accounted for 1,600,000 Total equivalent units 1,600,000 1,480,000 Direct Conversion Costs Total Costs to Account for and Cost per Equivalent Unit Beginning work in process Materials 110,000 $ $ 24,000 Print Done 100,000 units Units in beginning Work in Process (WIP) inventory Units started during the month (all direct materials, including cream and salt, are added at the beginning of the churning process) Units in ending Work in Process (WIP) inventory (40% of the way through the process) 1,500,000 units 200,000 units Cost information is as follows: WIP - Churning Department balance as of January 1: Direct material cost included in beginning WIP balance Conversion cost included in beginning WIP balance 110,000 24,000 Beginning balance, WIP, January 1 134,000 Manufacturing costs incurred during January: Direct materials used 1.730,000 Direct labor Manufacturing overhead 10,000 558,000 2,298,000 Total manufacturing costs entered into production during January $ Print Done

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