Question

On March 1, the Mixing Department had 100 rolls of paper in process. During March​, the Mixing Department completed the mixing process for those 100 rolls and also started and completed the mixing process for an additional 4,800 rolls of paper. The department started but did not finish the mixing process for an additional 500 rolls, which were 20% complete with respect to both direct materials and conversion work at the end of March. Direct materials and conversion costs are incurred evenly throughout the mixing process.

Х - Data Table Direct Direct Manufacturing Total Materials Labor Overhead Allocated Costs Beginning inventory, Mar. 1 $ 420 $ 505 $ $ 240 3,080 1,165 12,335 5,080 4,175 Costs added during March $ 5,500 $ 4,680 $ 3,320 $ 13,500 Total costs Print Done

Answer 1

Physical units Direct Materials Conversion costs UNITS Unit to account for: Beginning work-in-process Started in production (4,800 + 500) Total units to account for 100 5,300 5,400 Units accounted for Completed and trasnferred out (4,800 + 100) Ending work in process (500 x 20%) Total units accounted for 4,900 500 4,900 100 5,000 4,900 100 5,400 5,000 Direct materials Conversion costs Total costs $ COSTS Cost to account for: Beginning work in process Cost added during the period Total costs to account for Divided by: Total EUP Cost per equivalent unit 420 $ 5,080 5,500 $ 5,000 1.10 $ $ 745$ 7,255 8,000 $ 5,000 1.60 1,165 12,335 13,500 $ $ Costs accounted for: Completed and transferred out Ending work in process Total costs accounted for 5,390 $ 110 5,500 $ 7,840 $ 160 8,000 $ 13,230 270 $ 13,500

Working Notes: Completed and transferred out Units Direct materials Conversion costs Total Completed and trasnferred out Cost per unit Total Cost 4,900 $ 1.10 $ 4,900 $ 1.60 $ 5,390 7,840 13,230 Ending Work in process Units 110 Direct materials Conversion costs Total Completed and trasnferred out Cost per unit Total Cost 100 $ 1.10 $ 100 $ 1.60 $ 160 270 Conversion cost = Direct labor + Manufacturing Overhead allocated

Journal Entries Date Accounts Debit Credit Mar 31 $ $ 5,080 Work in process inventory Raw material inventory (to record use of raw material) $ 5,080 Mar 31 $ 4,175 Work in process inventory Wages payable (to record direct labor) $ 4,175 Mar 31 $ 3,080 Work in process inventory Manufacturing overhead (to record manufacturing overhead applied) $ 3,080 Mar 31 $ 13,230 Finished Goods inventory Work in process inventory (to record completion of goods) $ 13,230

.