Question

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The Carlberg Company has two manufacturing departments, assembly and painting. The assembly department started 10,000 units during November. The following production activity unit and cost information refers to the assembly department's November production activities. Assembly Department Beginning work in process Units transferred out Ending work in process Units 2.000 9,000 3,000 Percent of Direct Materials Added 60% 100% Percent of Conversion Added 40% 100% 30% 80% $1,581 (includes $996 for direct materials and $585 for conversion Beginning work in process inventory-Assembly dept Costs added during the month Direct materials Conversion $ 10.404 $ 12.285 Required: Prepare the November 30 journal entry to record the transfer of units (and costs) from the assembly department to the painting department. Use the FIFO method. View transaction list Journal entry worksheet Record the transfer of units from the assembly department to the painting department (FIFO method.) Note: Enter debits before credits Transaction General Journal Credit Hecord entry Clear entry

Answer 1

Solution:

Particulars	Debit	Credit
Work in Process Inventory - Painting	20,607
Work in Process Inventory - Assembly		20,607

　

Working:

Equivalent units of production - FIFO	Direct Materials	Conversion
Units to complete beginning WIP
Direct materials (2,000 * 40%)	800
Conversion (2,000 * 60%)		1200
Units completed & transferred out (7,000 x 100%)	7000	7000
Units of ending WIP
Direct materials (3,000 * 80%)	2400
Conversion (3,000 * 30%)		900
Equivalent units of production	10200	9100

Assignment of costs to output of department - FIFO
Costs of units tfd out
Cost of beginning WIP inventory		1,581
Costs to complete beginning WIP
Direct materials (800 EUP * $1.02 per EUP)	816
Conversion (1,200 EUP * $1.35 per EUP)	1,620
Total costs to complete		2,436
Cost of units started and completed this period
Direct materials (7,000 EUP * $1.02 per EUP)	7,140
Conversion (7,000 EUP * $1.35 per EUP)	9,450
Total cost of units started and completed		16,590
Total costs of units tfd out		20,607
Cost of ending WIP inventory
Direct materials (2,400 EUP * $1.02 per EUP)	2,448
Conversion (900 EUP * $1.35 per EUP)	1,215
Total costs of ending WIP		3,663
Total costs assigned ($1,581 + $10,404 + $12,285)		24,270