Question

CH 17 EX 2,3,4,8,10,12,19,20 eBook Calculator Cost of Production and Journal Entries Lighthouse Paper Company manufactures newsprint. The product is manufactured in two departments, Papermaking and Converting. Pulp is first placed into a vessel at the beginning of papermaking production. The following information concerns production in the Papermaking Department for March: Account Work in Process-Papermaking Department Account No. Date Item Debit Credit Mar. 1 Bal., 2,600 units, 35% completed 31 Direct materials, 105,000 units 31 Direct labor 31 Factory overhead 31 Goods transferred, 103,900 units 31 Bal., 3,700 units, 80% completed Balance Debit Credit 9,139 339,889 380,449 435,244 330,750 40,560 54,795 al. Prepare the March journal entry for the Papermaking Department for the materials charged to production. - a2. Prepare the March journal entry for the Papermaking Department for the conversion costs charged to production. If an amount box does not require an entry, leave it blank. a3. Prepare the March journal entry for the Papermaking Department for the completed production transferred to the Converting Department. If required, round your interim calculations to two decimal places and your final answer to the nearest dollar. b. Determine the Work in Process-Papermaking Department March 31 balance. If required, round your interim calculations to two decimal places and your final answer to the nearest dollar.

Answer 1

a1.

Work in process - papermaking department	$330,750
Raw material inventory		$330,750

a2.

Work in process - papermaking department	$95,355
Factory labor		$40,560
Factory overhead		54,795

		Equivalent units
	Physical units	Material	Conversion
Beginning inventory	2,600	0	1,690 (2,600*65%)
Started and completed (103,900-2,600)	101,300	101,300	101,300
Ending inventory	3,700	3,700	2,960 (3,700*80%)
Total	107,600	105,000	105,950

	Material	Conversion
Cost incurred during March	$330,750	$95,355
Equivalent units	105,000	105,950
Cost per equivalent units	$3.15	$0.9

Cost of beginning work in process:
Beginning balance	$9,139
Cost incurred during March (1,690*$0.9)	1,521
Cost of beginning work in process	$10,660
Cost of units started and completed:
Material (101,300*$3.15)	319,095
Conversion (101,300*$0.9)	91,170
Cost of beginning work in process	$410,265
Cost of goods transferred	420,925
Cost of ending work in process:
Material (3,700*$3.15)	11,655
Conversion (2,960*$0.9)	2,664
Cost of ending work in process	$14,319

a3.

Work in process - converting department	$420,925
Work in process - papermaking department		$420,925

a4.

Work in process - papermaking department March 31 balance = $14,309