Question

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Luxury Beans produces jelly beans in three sequential processing departments: Centers, Shells, and Packaging. Assume that the Shells processing department began June with $18,700 of unfinished jelly bean centers. During June, the Shells process used $42,800 of direct materials, used $12,000 of direct labor, and was allocated $17,500 of manufacturing overhead. In addition, $126,300 was transferred out of the Centers processing department during the month and $196,500 was transferred out of the Shells processing department during the month. These transfers represent the cost of the jelly beans transferred from one process to another. 1. Prepare a T-account for the "Work in Process Inventory-Shells" showing all activity that took place in the account during June. What is the ending balance in the "Work in Process Inventory-Shells" on June 30? What does this figure represent? 2. 1. Prepare a T-account for the "Work in Process Inventory-Shells" showing all activity that took place in the account during June. Work in Process Inventory-Shells 2. What is the ending balance in the "Work in Process Inventory-Shells" on June 30? What does this figure represent? The ending balance of $ jelly beans. This represents the cost of making the the cost incurred so far on applying the shells. the cost of making the jelly bean centers and

Answer 1

Answer: Requirement 1: Work in Process Inventory-Shells Beginning Balance Direct materials used Direct labor Manufacturing overhead allocated Transferred in from Centers Ending Balance 18700 42800 12000 Transferred to Packaging 196500 17500 126300 20800 Requirement 2: The ending Balance of $20,800 Represents the costs of making the partially completed jelly beans. This Includes the cost of making the jelly bean centers and Includes the cost incurred so far on applying the shells.