Question

I have most of section A completed.

This is all the information that is available for this problem.

Two Departments, Journal Entries with Supporting Calculations-Weighted Average Method Patterson 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. Patterson uses the weighted average method for process costing. January 1, 2019, inventory account balances are as follows: $30,000 Materials inventory Work in process- Department 1 (3,000 units, 30% complete) 4,560 Direct material 10,640 Conversion costs Work in process-Department 2 (3,550 units, 40% complete) Finished goods inventory (2,000 units @ $16) 43,439 32,000 During January, the following transactions occurred: 1. Purchased material on account, $90,000. 2 Placed $84,000 of material into process in Department 1. This $84,000 represents 24,000 units of materials. 3. Distributed total payroll costs: $108,116 of direct labor to Department 1, $62,700 of direct labor to Department 2, and $51,000 of indirect labor to Manufacturing Overhead. 4. Incurred other actual manufacturing overhead costs, $81,000. (Credit Other Accounts.) 5. Applied overhead to the two processing departments: $88,000 to Department 1 and $43,900 to Department 2. 6. Transferred 25,000 completed units from Department 1 to Department 2. The 2,000 units remaining in Department 1 were 20% completed with respect to conversion costs. 7. Transferred 26,000 completed units from Department 2 to finished goods inventory. The 2,550 units remaining in Department 2 were 70% completed with respect to conversion costs 8. Sold 20,000 units on account at $27 per unit. Patterson uses weighted average inventory costing procedures for the finished goods inventory.

Answer 1

a.

General Journal
Ref.	Description	Debit	Credit
7	Finished goods inventory	400400	0
	Work in process-Department 2	0	400400
8	Cost of goods sold	308857	0
	Finished goods inventory	0	308857
	To record cost of goods sold.

Cost of goods sold = $432400 x 20000/28000 = $308857

b.

Patterson Laboratories, Inc. Department 1
Flow of Units and Equivalent Units Calculations, January 2019
		Equivalent Units
		% Work Done	Direct Materials	% Work Done	Conversion Costs
Completed/Transferred	25000	100%	25000	100%	25000
Ending inventory	2000	100%	2000	20%	400
Total	27000		27000		25400
Product Cost Report
				Direct Materials	Conversion Costs
Beginning inventory			15200	4560	10640
Current			280116	84000	196116
Total costs to account for			295316	88560	206756
÷ Total equivalent units				27000	25400
Average cost/Equivalent unit				3.28	8.14
Complete/Transferred:
Direct materials (25000 x $3.28)			82000
Conversion costs (25000 x $8.14)			203500
Cost of goods manufactured			285500
Ending inventory:
Direct materials (2000 x $3.28)			6560
Conversion costs (400 x $8.14)			3256
Cost of ending inventory			9816
Total costs allocated			295316

c.

Patterson Laboratories, Inc. Department 2
Flow of Units and Equivalent Units Calculations, January 2019
		Equivalent Units
		% Work Done	Direct Materials	% Work Done	Conversion Costs
Completed/Transferred	26000	100%	26000	100%	26000
Ending inventory	2550	100%	2550	70%	1785
Total	28550		28550		27785
Product Cost Report
				Direct Materials	Conversion Costs
Beginning inventory			43439	0	43439
Current			392100	285500	106600
Total costs to account for			435539	285500	150039
÷ Total equivalent units				28550	27785
Average cost/Equivalent unit				10.00	5.40
Complete/Transferred:
Direct materials (26000 x $10.00)			260000
Conversion costs (26000 x $5.40)			140400
Cost of goods manufactured			400400
Ending inventory:
Direct materials (2550 x $10.00)			25500
Conversion costs (1785 x $5.40)			9639
Cost of ending inventory			35139
Total costs allocated			435539

d.

Materials Inventory
Bal.	30000	84000	2
1	90000	0
Bal.	36000	0
Work in Process-Dept. 1
Bal.	15200	285500	6
2	84000	0
3	108116	0
5	88000	0
Bal.	9816	0
Work in Process-Dept. 2
Bal.	43439	400400	7
3	62700	0
5	43900	0
6	285500	0
Bal.	35139	0
Finished Goods Inventory
Bal.	32000	308857	8
7	400400	0
Bal.	123543	0