Computing equivalent units for a second department with beginning inventory; preparing a...

Computing equivalent units for a second department with beginning inventory; preparing a production cost report and recording transactions on the basis of the report’s information; weighted-average method [45—60 min]

Casey Carpet manufactures broadloom carpet in seven processes: spinning, dyeing, plying, spooling, tufting, latexing, and shearing. In the Dyeing Department, direct materials (dye) are added at the beginning of the process. Conversion costs are incurred evenly throughout the process. Casey uses weighted-average process costing. Information for March 2011 follows:

Requirements

1. Prepare a time line for Casey’s Dyeing Department.

2. Use the time line to help you compute the equivalent units, cost per equivalent unit, and total costs to account for in Casey’s Dyeing Department for March.

3. Prepare the March production cost report for Casey’s Dyeing Department.

4. Journalize all transactions affecting Casey's Dyeing Department during March, including the entries that have already been posted.