1. Using the data in E, prepare a cost of production summary for the month ended January...
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In E, Chavez 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 store- room, 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
2. Prepare a journal entry to transfer the cost of the completed units from Blending to the finished goods storeroom.
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Related Book For
Principles of Cost Accounting
ISBN: 978-1305087408
17th edition
Authors: Edward J. Vanderbeck, Maria Mitchell
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