Question

You Can Paint Too prepares and packages paint products. You Can Paint Too has two departments: Blending and Packaging. Direct materials are added at the beginning of the blending process (dyes) and at the end of the packaging process (cans). Data from the month of May for the Blending Department are as follows: (Click the icon to view the data from May.) You Can Paint Too completed the following production cost report for its Blending Department for the month of May: 5/(Click the icon to view the assignment of costs.) Conversion costs are added evenly throughout each process. The company uses the weighted average method. Read the requirements. Requirement 1. Prepare the journal entries to record the assignment of direct materials and direct labor and the allocation of manufacturing overhead to the Blending Department. Also, prepare the journal entry to record the costs of the gallons completed and transferred out to the Packaging Department. Assume labor costs are accrued and not yet paid. (Record debits first, then credits. Exclude explanations from any journal entries.) Begin with the summary journal entry to record the assignment of direct materials and direct labor and the allocation of manufacturing overhead to the Blending Department. Date Accounts Debit Credit May 31

Answer 1

Answer is given below

Credit Debit $5,700 Date Accounts May-31 Work in process - Blending Department To Raw Material inventory (To record issue of material to work in process) $5,700 Credit Debit $2,085 Date Accounts May-31 Work in process - Blending Department To Wages payable (To record direct labor incurred on work in process) $2,085 Credit Debit $2,004 Date Accounts May-31 Work in process - Blending Department To Manufacturing overhead (To record overhead applied to production) $2,004 Credit Debit $7,080 Date Accounts May-31 Work in process - Packaging Department To Work in process - Blending Department (To record transfer of completed units to Packaging dept) $7,080

Work in process Inventory - Blending Department Particulars Amount Date Particulars May-01 Opening balance $0 May-01 Transfer to Packaging Dept Direct Material $5,700 May 31 Closing balance May 31 Clo Direct labor $2,085 Overheads $2,004 $9,789 Amount $7,080 $2,709 $9,789 Ending balance is $2,709 3 $1.18 Average cost of per gallon transferred to Packing department (Direct material + Direct labor + Manufacturing overheads) Total Equivalent Units Total Cost Completed and transferred cost $7,080 Average cost per gallon $1.18 6,000 Answer is Option D)