Problem 61 Cost of Production Summaries, One Department, Two


Question Description:

35

I’ve attached a file with the help I need I’m getting stumped and my numbers are not adding up! Problem 6 cost accounting.docx Problem 6­1 Cost of Production Summaries, One Department, Two Months; Journal Entries Manufacturing data for January and February in the Mixing Department of Kerwin Kleaning Products follow: All materials are added at the start of the process. Labor and factory overhead are added evenly throughout the process. No units were in process at the beginning of January. Goods finished in Mixing are transferred to Blending for further processing. Required: 1. From an analysis of this information, prepare a cost of production summary for each month, using the average cost method. (Round unit costs to three decimal places.) Kerwin Kleaning Products Cost of Production Summary-Mixing Dept. For the Month Ended January 31, 2012 Cost of Production for Month: Materials $ Labor Factory Overhead Total Costs to be Accounted for $ Unit Output for Month: Materials: Finished and Transferred to Blending During Month Equivalent Units of Work in Process, End of Month Total Equivalent Production Labor and Factory Overhead: Finished and Transferred to Blending During Month Equivalent Units of Work in Process, End of Month Total Equivalent Production Unit Cost for Month: $ Materials Labor Factory Overhead $ Total Inventory Costs: $ Cost of Goods Finished and Transferred to Blending During Month Cost of Work in Process, End of Month: Materials $ Labor Factory Overhead $ Total Production Costs Accounted for Cost of Work in Process, Beginning of Month: Materials $ Labor Factory Overhead $ Cost of Production for Month: Materials $ Labor Factory Overhead Total Costs to be Accounted for $ Unit Output for Month: Materials: Finished and Transferred to Blending During Month Equivalent Units of Work in Process, End of Month Total Equivalent Production Labor and Factory Overhead: Finished and Transferred to Blending During Month Equivalent Units of Work in Process, End of Month Total Equivalent Production Unit Cost for Month: $ Materials Labor Factory Overhead $ Total Inventory Costs: $ Cost of Goods Finished and Transferred to Blending During Month Cost of Work in Process, End of Month: $ Materials Labor Factory Overhead $ Total Production Costs Accounted for 2. Make the journal entries necessary to record each month’s transactions. (Hint: See Chapter 5 to review.) Jan. 31 Feb. 28 Exercise 6­1 Computing Equivalent Units of Production for Materials, Labor, and Overhead Using the data given for Cases 1­3 below, and assuming the use of the average cost method, compute the separate equivalent units of production–one for materials and one for labor and overhead–under each of the following assumptions (labor and factory overhead are applied evenly during the process in each assumption): Assumptions: a. b. All materials go into production at the beginning of the process. All materials go into production at the end of the process. (Note that this would have to be a department subsequent to the first department for all materials to be added at the end of the process.) At the beginning of the process, 75% of the materials go into production and 25% go into production when the process is one­half completed. c. Note that you will have three solutions for each of the following cases: Case 1 – Started in process 5,000 units; finished 3,000 units; work in process, end of period, 2,000 units, three­fourths completed. Case 2 – Opening inventory 5,000 units, three­fifths completed; started in process 40,000 units; finished 39,000 units; work in process, end of period, 6,000 units, one­fourth completed. Case 3 – Opening inventory 1,000 units, one­half completed, and 8,000 units, one­fourth completed; started in process 30,000 units; finished 29,000 units; closing inventory work in process 5,000 units, one­fourth completed, and 5,000 units, one­half completed. a. Case 1 Materials account Case 2 Case 3 Labor and factory o

Answer

35