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]

Claudia 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. Claudia uses weighted -average process costing. Information for July 2011 follows:

Requirements

1. Prepare a time line for Claudia’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 Claudia’s Dyeing Department for July.

3. Prepare the July production cost report for Claudia’s Dyeing Department

4. Journalize all transactions affecting Claudia’s Dyeing Department during July, including the entries that have already been posted.