Journal entries Required: Using the data in P5-11, draft the journal entries to record...

Journal entries

Required:

Using the data in P5-11, draft the journal entries to record:

1. The cost of goods received from Shaping during the month.

2. The production costs incurred in Forming during the month.

3. The cost of goods completed and transferred to Finishing during the month.

Reference:

Ledger account analysis; cost of production summary

Analyze the information presented in the following general ledger account of Mankato Manufacturing Co., which has three departments: Shaping, Forming, and Finishing:

Additional facts:

a. 2,000 units were in process at the beginning of the month, one-half completed. (Hint: The beginning inventory cost of $10,250 minus the beginning inventory costs transferred in from Shaping equal the costs added in Forming.)

b. 9,000 units were received from Shaping during the month.

c. 8,000 units were transferred to Finishing during the month.

d. Unit costs in Shaping and Forming were the same for March as for the prior month. (Hint: To arrive at the beginning inventory costs transferred in from Shaping, you must first determine the unit cost in Shaping.)

e. The ratio of materials, labor, and factory overhead costs for Forming in the beginning and ending balances of Work in Process was in the same ratio as the costs incurred in Forming during the current month. (Hint: After you determine the total beginning inventory costs added in Forming, use the above mentioned ratio to break the total into materials, labor, and factory overhead.)

Required:

Prepare a cost of production summary for March.