Question

Johnson Paper Co. produces the paper used by wallpaper manufacturers. Johnson's four-stage process includes mixing, cooking, rolling, and cutting. (Click the icon to view additional information.) The Mixing Department compiled the following data for March: (Click the icon to view the data.) Read the requirements. Requirement 1. Prepare a production cost report for the Mixing Department for March. The company uses the weighted average method. (Round all cost per unit amounts to the nearest cent and all other amounts to the nearest whole dollar. Abbreviation used: EUP = equivalent units of production.) Johnson Paper, Co. Production Cost Report-Mixing Department Month Ended March 31 Equivalent Units Physical Direct Conversion Units Materials Costs UNITS Units to account for: Total units to account for Units accounted for:

Answer 1

1.

		Material	Conversion
Units to account for
Beginning Work in process	400
Units started	4600
Total Units to account for	5000
Units accounted for
Units transferred	4400	4400	4400
Equivalent units in ending WIP	600	120	120
Total units accounted for	5000
Equivalent units of production		4520	4520
	Material	Conversion
Cost of beginning work in process	$            420	$              520
Cost added during the production	$         5,456	$           5,808
Total Cost	$         5,876	$           6,328
Equivalent units of production	4520	4520
Cost per Equivalent unit	$           1.30	$             1.40
	Material	Conversion
Ending Work in process inventory
Equivalent units	120	120
Cost per Equivalent unit	$           1.30	$             1.40
Cost of Ending Work in process inventory	$            156	$              168
Units completed and transferred out
Units transferred	4400	4400
Cost per Equivalent unit	$           1.30	$             1.40
Cost of Units transferred	$         5,720	$           6,160
Costs to be accounted for
Cost of beginning work in process	$            940
Cost added during production	$      11,264
Total Costs to be accounted for	$      12,204
Costs accounted for as follows
Cost of Ending work in process	$            324
Cost of Units transferred	$      11,880
Total Costs accounted for	$      12,204

2.

Account Titles	Debit	Credit
Work in Process Inventory	$         5,456
Raw Material Inventory		$           5,456
(Raw material used)
Work in Process Inventory	$         2,288
Wages Payable		$           2,288
(Direct Labor incurred)
Work in Process Inventory	$         3,520
Manufacturing Overhead		$           3,520
(manufacturing overhead applied)
Finsihed Goods inventory	$      11,880
Work in Process Inventory		$        11,880
(Goods completed)