Question

Vultan Wax manufactures crayons in a three-step process: mixing, molding, and packaging. (Click the icon to view the additional information.) At March 31, before recording the transfer of costs from the Mixing Department to the Molding Department, the Vultan Wax general ledger included the following account: (Click the icon to view the account.) Read the requirements. Requirement 1. Prepare a production cost report for the Mixing Department for March. Round equivalent unit of production costs to four decimal places. Round all other costs to the nearest whole dollar. (Complete all answer boxes. Enter a "0" for any zero balances. Round cost per unit amounts to four decimal places. Abbreviations used: EUP = equivalent units of production; WIP = work-in-process.)

Answer 1

1.

		Material	Conversion Costs
Units to account for
Beginning Work in process	600
Units started	4600
Total Units to account for	5200
Units accounted for
Inventory in Process, Beginning	600	0	480
Started and completed	3600	3600	3600
Units transferred	4200	3600	4080
Equivalent units in ending WIP	1000	1000	700
Total units accounted for	5200
Equivalent units of production		4600	4780
	Material	Conversion Costs
Cost added during the production	$      50,600	$        90,820
Equivalent units of production	4600	4780
Cost per Equivalent unit	$         11.00	$           19.00
	Material	Conversion Costs	Total
Inventory in Process, Beginning			$        26,900
Costs incurred			$      141,420
Total Costs to be accounted for			$      168,320
Costs allocated
Inventory in Process, Beginning			$        26,900
To completed beginning inventory	$                -	$           9,120	$          9,120
Total Cost of Work in Process			$        36,020
Started and completed	$      39,600	$        68,400	$      108,000
Transferred to Packing Department			$      144,020
Inventory in Process, Ending	$      11,000	$        13,300	$        24,300
Total Costs accounted for			$      168,320

2.

Account Titles	Debit	Credit
Work in Process Inventory-Mixing	$      50,600
Raw Material Inventory		$        50,600
(Raw material used)
Work in Process Inventory-Mixing	$      22,840
Wages Payable		$        22,840
(Direct Labor incurred)
Work in Process Inventory-Mixing	$      67,980
Manufacturing Overhead		$        67,980
(manufacturing overhead applied)
Work in Process Inventory - Molding	$    144,020
Work in Process Inventory - Mixing		$      144,020
(Goods completed)