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Chapter 18: Q.18-13SE (page 1009)

Question: The Mixing Department鈥檚 production cost report for May shows \(12,500 in total costs, of which \)2,500 will remain in the department assigned to the units still in process at the end of the month. Prepare the journal entry to record the transfer of costs from the Mixing Department to the Packaging Department.

Short Answer

Expert verified

Answer

Date

Particulars

Debit ($)

Credit ($)

Work-in-process inventory-Packaging

10,000

Work-in-process inventory-Mixing

10,000

Step by step solution

01

Amount transferred to packaging department

Amounttransferredfrommixingdepartment=Openinigbalanceofmixingdepartment-Endingbalanceofmicingdepartment=$12,500-$52,500=$10,000

02

Recording of transfer from one department to another department

For recording the transfer of cost from one department to other department, the work in process inventory of the department transferring the cost is credited and the work in process inventory of the department receiving the cost is debited.

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Most popular questions from this chapter

Question: Refer to Short Exercises S18-8 and S18-9. Use Complete Foods鈥檚 costs per equivalent unit of production for direct materials and conversion costs that you calculated in Short Exercise S18-9.

Calculate the cost of the 38,000 units completed and transferred out and the

24,000 units, 20% complete, in the ending Work-in-Process Inventory.

Bishop Company uses the FIFO method in its process costing system. The Mixing Department started the month with 500 units in a process that was 20% complete, started in the production of 2,000 units, and transferred 2,100 units to the finished goods storage area. All materials are added at the beginning of the process, and conversion costs occur evenly. The units in process at the end of the month are 45% complete concerning conversion costs. The department incurred the following costs:

Beginning WIP

Added this month

Total

Direct materials

\(500

\)2,000

\(2,500

Conversion cost

1,250

5,450

6,700

Total

\)1,750

\(7,450

\)9,200

14A. How many units are still in process at the end of the month?

15A. Compute the equivalent production units for the Mixing Department for the current month.

16A. Determine the cost per equivalent unit for the current period for direct materials and conversion costs.

17A. Determine the cost to be transferred to the next department.

Question: Cadwell manufactures cell phones. The conversion costs to produce cell phones for November are added evenly throughout the process in the Assembly Department. The company uses the weighted-average method. For each of the following separate assumptions, calculate the equivalent units of production for conversion costs in the ending Work-in-Process Inventory for the Assembly Department:

1. 12,000 cell phones were 60% complete

2. 21,000 cell phones were 40% complete

Work Problem P18-33A using the FIFO method. The Mixing Department beginning work in process of 300 units is 40% complete as to both direct materials and conversion costs. Round equivalent unit of production costs to four decimal places. Round all other costs to the nearest whole dollar.

The Finishing Department reports the following data for the month:

Equivalent unit of production:

Transferred in

3,000

Direct materials

3,000

Conversion cost

2,250

Costs:

Beginning WIP

Added this month

Total

Transferred in

\(7,500

\)15,000

\(22,500

Direct materials

3,250

6,500

9,750

Conversion costs

6,125

13,000

19,125

Total

\)16,875

\(34,500

\)51,375

Calculate the cost per equivalent units of production for each input. The company

uses the weighted-average method.
See all solutions

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