Question

8) Twinnings Corporation manufactures Scheduling Books. There are two processes: printing and binding. (4pt The following information is given for the printing department for September. Units: Units, beginning work in process 40,000 (20% complete for materials, 60% complete for conversion) Started 300,000 Completed Units, ending work in process 50,000 (25% complete for materials, 80% complete for conversion) Costs: Materials Conversion Total beginning work in process $ 2,160 current costs $ 6,080 $220.875 $226,955 $30.600 $32,760 $ 8,240 $251,475 $259,715 total costs The company uses FIFO inventory assumption. What is the journal entry for the cost of goods sent to binding? work in process - binding $246,500 work in process - printing $246,500 work in process - printing $246,340

Answer 1

Answer is given below

Answer is Credit Journal Entry Work-in-progress Binding To Work-in-Progress Printing Debit $246,340 $246,340 working note: FIFO Method Opening WIP Direct Material Conversion Cost Total Cost to Account for $8,240 $220,875 $30,600 $259,715 Total costs accounted for $259,715 Schedule of Physical and Equivalent Units - FIFO Physical Units Equivalent Units Direct % Completed Material Completed Conversion Cost Analysis of Physical Flow of Units Units to be accounted for Beginning WIP Inventory Units Started Total Units To Account for 40,000 300,000 340,000 80% 100% Units accounted for Units Completed during Period: From Beginning WIP in Inventory Units started and completed during Period Units completed and transferred out Units in Ending WIP Inventory Total Units Accounted for Total Equivalent units 32,000 250,000 40% 100% 16,000 250,000 40,000 250,000 290,000 50,000 340,000 25% 12,500 80% 40,000 294,500 306,000 Unit Cost Analysis Schedule-FIFO Method Direct Material Conversion Cost Total Costs Cost to Account for Current Period Costs Total cost $220,875 $220,875 $30,600 $30,600 $251,475 $251,475 Divided by Equivalent units Cost per equivalent unit (Current period cost/Equivalent units) 294,500 $0.750 306,000 $0.100 $0.850 Note: In FIFO method only current period cost is divided by equivalent units to arrive at cost per equivalent unit Total Costs Analysis of Total Cost Production Cost Worksheet Direct Conversion Material Cost Units Started and completed during period Opening WIP cost $6,080 $2,160 Cost incurred on Opening WIP during the month $24,000 $1,600 Direct Material $187,500 Conversion cost $25,000 Total costs of units completed and transferred to Binding Dept | $217,5801 $28,760 $8,240 25,600 equivalent unit X EUP $187,500 $25,000 $246,340 $9,375 Ending Work in process Inventory Direct Material Conversion cost Total Cost of Ending Work in Process Total Costs Accounted for $9,375 $4,000 $13,375 $259,715 $4,000 $4,000 $32,760 $9,375 $226,955