Problem

Cost of production summary and journal entries 1. For E5-13, prepare a cost of producti...

Cost of production summary and journal entries

1. For E5-13, prepare a cost of production summary for the month ended January 31, 2013.

2. Prepare a journal entry to transfer the completed units from Blending to the finished goods storeroom.

Reference:

Computing unit cost for department and for completed units with beginning inventory

Charlotte Concrete Inc. has two production departments. Blending had 1,000 units in process at the beginning of the period, two-fifths complete. During the period 7,800 units were received from Mixing, 8,200 units were transferred to the finished goods storeroom, and 600 units were in process at the end of the period, 1/3 complete. The cost of the beginning work in process was:

Cost in Mixing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $10,000

Cost in Blending:

Materials . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 200

Labor . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 500

Factory overhead . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 300

The costs during the month were:

Cost of goods received from Mixing. . . . . . . . . . . . . . . . . . . . . . . $78,000

Cost in Blending:

Materials . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,328

Labor . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10,000

Factory overhead . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6,672

a. Determine the unit cost for the month in Blending.

b. Determine the total cost of the products transferred to finished goods.

c. Determine the total cost of the ending work in process inventory.

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