Question

4 of 5 (3 complete) mre: 0 of 3 pts 5-27A (similar to) tep-by-Step Painting prepares and packages paint products. The company has two departments (1) Blending and (2) Packaging Direct materials are added at the beginning of the blending process om the month of August for the Blending Department are as follows: (Click the icon to view the data from August) (Click the icon to view the assignment of costs.) Read the requirements Requirement 1. Prepare the journal entry to record the use of direct materials and direct labor and the allocation Begin by preparing the journal entry to record the costs to the Blending Department (Record dels test the Data Table Journal Entry Date Credit Debit Accounts Manufacturing Overhead 10,000 galle Wages Payable Beginning work in process inventory Started production Completed and transferred out to Packaging in August Ending work pros t ory (40% of the way through the binding process 7,000 gallo 3.000 gallo 0 Requirements 6.200 Beginning work in process inventor Costs added during August Direct materials (dyes) Direct labor Manufacturing overhead 1,050 1. Prepare the journal entry to record the use of direct materials and direct labor and the allocation of manufacturing overhead to the Blending Department Also, give the journal entry to record the costs of the gallons completed and transferred out to the Packaging Department. Assume the wages are unpaid 2. Post the journal entries to the Work in Process Inventory--Blending T-account What is the ending balance Total costs added during August Print Punt Done Choose from any list or enter any number in the input Belds and then click Check Answer 2 pemain

Answer 1

Answer is given below.

I have given journal entry for each cost item. You can combine the same if not required separately

WIP - Blending

To Raw material inventory

To Wages payable

To Manufacturing Overhead

Credit | Date Aug 31 Debit $6,200 Accounts Work in process - Blending Department To Raw Material inventory (To record issue of material to work in process) $6,200 Credit Date Aug 31 Debit $1,050 Accounts Work in process - Blending Department To Wages payable (To record direct labor incurred on work in process) $1,050 Credit Date Aug 31 Debit $2,148 Accounts Work in process - Blending Department To Manufacturing overhead (To record overhead applied to production) $2,148 Credit Date Aug 31 Debit $7,070 Accounts Work in process - Packaging Department To Work in process - Blending Department (To record transfer of completed units to Packaging dept) $7,070

Work in process Inventory - Blending Department Date Particulars Amount Date Particulars Aug-01 Opening balance $0 Aug-01 Transfer to Packaging Dept Direct Material $6,200 Aug 31 Closing balance Direct labor $1,050 Overheads $2,148 $9,398 Amount $7,070 $2,328 $9,398 Ending balance is $2,328

Working notes: Equivalent Units of Production - Weighted average method % Units EUP Materials Conversi Materials EUP Conversion on Units completed and transferred out to Packaging Units in Ending WIP Inventory Equivalent units of production 100% 100% 7,000 3,000| 10,000 100% 40% 7,000 1,200 8,200 7,000 3,000 10,000 Total Production Cost Materials Conversion Cost per EUP Work in process Beginning Cost added in current period Total cost to account for Equivalent units of production Cost per equivalent unit of production $9,398 $9,398 Costs EUP 1.01 $6,200 $6,200 Costs 10,000 EUP $0.62 $3,198 $3,198 8,200 $0.39 EUP Cost per EUP Total Cost $0.62 7,000 7,000 $4,340 $2,730 $0.39 $7,070 Cost Assignment and Reconciliation Cost transferred out Direct Materials Conversion Total cost transferred out Costs of ending work in process Direct Materials Conversion Total ending work-in process Total costs accounted for EUP 3,000 1,200 Cost per EUP $0.62 $0.39 Total Cost $1,860 $468 $2,328 $9,398