Casey 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. Information for July 2018 follows:
UNITS
Beginning Work-in-Process Inventory ............................................. 75 rolls
Transferred in from Spinning Department during July .......................... 590 rolls
Completed during July ............................................................... 550 rolls
Ending Work-in-Process Inventory (80% complete for conversion work) ... 115 rolls
COSTS
Beginning Work-in-Process Inventory (transferred in costs, $3,700; .............. $ 10,100
materials costs, $1,450; conversion costs, $4,950)
Transferred in from Spinning Department ......................................... 21,570
Materials costs added during July ................................................... 11,185
Conversion costs added during July (manufacturing wages, $8,050; ........... 53,472
manufacturing overhead allocated, $45,422)
Requirements
1. Prepare a production cost report for Casey's Dyeing Department for July. The company uses the weighted-average method.
2. Journalize all transactions affecting Casey's Dyeing Department during July, including the entries that have already been posted. Assume labor costs are accrued and not yet paid?