Question

Dengo Co. makes a trial mix in two departments: roasting and blending. Direct materials are added at the beginning of each process, and conversion costs...

e home) Quiz Help Save & Ext Subr Required Information The following information applies to the questions displayed below) Dengo Co. makes a trail mix in two departments: roasting and blending. Direct materials are added at the beginning of each process, and conversion costs are added evenly throughout each process. The company uses the FIFO method of process costing. During October, the roasting department completed and transferred 22 200 units to the blending department of the units completed, 3,000 were from beginning inventory and the remaining 19.200 were started and completed during the month. Beginning work in process was 100% complete with respect to direct materials and 40% complete with respect to conversion. The company has 2.400 units (100% complete with respect to direct materials and 80% complete with respect to conversion) in process at month-end. Information on the roasting department's costs of beginning work in process inventory and costs added during the month follows. Cost Beginning work in process inventory Added during the month Direct Materials Conversion $ 9, see $ 110,970 248, 480 1,082,970 2. Prepare the journal entry dated October 31 to transfer the cost of completed units to the Blending department. (Do not roun your Intermediate calculations.)

Answer 1

Solution 2:

FIFO
Cost Charged to production
Total Cost of Beginning Work in process	$120,870
Total Costs incurred this period	$1,331,370
Total Cost to account for	$1,452,240
Total Cost Accounted for	$1,452,240
*Difference due to rounding cost/unit	$0
Unit Reconciliation
Units to account for:
Units in Beginning work in process	3000
Units Started this period	21600
Total Units to account for	24600
Total units Accounted for:
Units in Beginning work in process completed	3000
Units Started and Completed	19200
Units in ending work in process	2400
Total Units accounted for	24600
Equivalent units of production (EUP) - FIFO method
	Units	%Material	EUP-Material	% Conversion	EUP- Conversion
Beginning units completed this period (A)	3000	0%	0	60%	1800
Units Started and Completed (B)	19200	100%	19200	100%	19200
units of Ending work in process (D)	2400	100%	2400	80%	1920
Equivalent units of production (C+D)			21600		22920
Cost per EUP			Material		Conversion
Costs incurred this period (Total Costs)		Costs	$248,400	Costs	$1,082,970
/Equivalent units of Production		EUP	21600	EUP	22920
Cost per Equivalent unit of Production			$11.50		$47.25
Cost Assignment and Reconciliation
Beginning Inventory Cost:				$120,870
Cost to Complete Beginning Inventory	EUP	Cost per EUP	Total Cost
Direct materials	0	$11.50	$0
Conversion	1800	$47.25	$85,050
Total Cost to complete Beginning Inventory				$85,050
Total Costs of units in Beginning Inventory				$205,920
Cost of units started and completed	EUP	Cost per EUP	Total Cost
Direct Material	19200	$11.50	$220,800
Conversion	19200	$47.25	$907,200
Total Cost of units started and completed				$1,128,000
Total cost of units transferred out				$1,333,920
Cost of ending work in process	EUP	Cost per EUP	Total Cost
Direct Material	2400	$11.50	$27,600
Conversion	1920	$47.25	$90,720
Total Ending work in process				$118,320
Total Costs accounted for				$1,452,240

Journal Entry to transfer cost of completed units
31-Oct	Work in Process- Blending Dr	$1,333,920
	To Work in Process -Roasting		$1,333,920