Question

Required information Use the following information for the Quick Study below. (The following information applies to the questions displayed below.) Carlberg Company has two manufacturing departments, assembly and painting. The assembly department started 11,300 units during November. The following production activity unit and cost information refers to the assembly department's November production activities. Assembly Department Beginning work in process Units transferred out Ending work in process Unita 3,000 10,000 4,300 Percent of Direct Materials 708 1008 809 Percent of Conversion 300 1000 300 Beginning work in process inventory-Assembly dept Costs added during the months Direct materials Conversion $2,294 (consists of $1,533 for direct materials and $761 for conversion) $ 11,907 $ 21,819 QS 16-17A FIFO: Journal entry to transfer costs LO P4 Required: Prepare the November 30 journal entry to record the transfer of costs from the assembly department to the painting department. Use the FIFO method. View transaction list

Answer 1

Answer

Journal Entries -Carlberg Company
Event	Particulars	Debit	Credit
1	Work In Process - Painting Department Dr	$26,699
	To Work In Process - Assembly Department		$26,699
	(Being cost of goods completed in Assembly transferred to Painting department)

Carlberg Company
Assembly Department
Computation of Equivalent unit (FIFO)
Particulars	Physical units	Material	Conversion
Units to be accounted for:
Beginning WIP Inventory	3000
Units started this period	11300
Total unit to be accounted for	14300
Units Accounted for:
Units completed and transferred out
From beginning inventory Material - 30% Conversion - 70%	3000	900	2100
Started and completed currently	7000	7000	7000
Transferred to finished goods	10000	7900	9100
Units in ending WIP Material - 80% Conversion - 30%	4300	3440	1290
Total units accounted for	14300	11340	10390

Carlberg Company
Assembly Department
Computation of Cost per Equivalent unit
Particulars	Total cost	Material	Conversion
Current period cost	$33,726	$11,907	$21,819
Equivalent units		11340	10390
Cost per equivalent unit		$1.05	$2.10

Carlberg Company
Assembly Department
Production cost report - FIFO
Particulars	Total cost	Material	Conversion
Cost Accounted for :
Cost assigned to unit transferred out:
Cost from beginning WIP Inventory	$2,294	$1,533	$761
Current cost added to complete beginning WIP:
Material (900*$1.05)	$945	$945
Conversion (2100 * $2.10)	$4,410		$4,410
Total Cost from beginning inventory	$7,649	$2,478	$5,171
Current cost of unit started and completed:
Material (7000*$1.05)	$7,350	$7,350
Conversion (7000*2.10)	$14,700		$14,700
Total cost of unit started and completed	$22,050	$7,350	$14,700
Total cost of unit transferred out	$26,699	$9,828	$19,871
Cost assigned to ending WIP:
Material (3440*$1.05)	$3,612	$3,612
Conversion (1290*$2.10)	$2,709		$2,709
Total ending WIP inventory	$6,321	$3,612	$2,709
Total cost accounted for	$36,020	$13,440	$22,580