cost flow

Project Description:

nature’s way, inc., keeps one of its production facilities busy making a perfume called essence de la vache. the perfume goes through two processing departments: blending and bottling.
the following incomplete work in process account is provided for the blending department for march:
work in process—blending
march 1 balance 32,800 completed and transferred materials 147,600 to bottling (760,000 ounces) ?
direct labor overhead
march 31 balance
73,200 481,000
?
the $32,800 beginning inventory in the blending department consisted of the following ele- ments: materials, $8,000; direct labor, $4,000; and overhead applied, $20,800.
costs incurred during march in the bottling department were: materials used, $45,000; direct labor, $17,000; and overhead cost applied to production, $108,000.
required:
1. prepare journal entries to record the costs incurred in both the blending department and bottling department during march. key your entries to items (a) through (g) below:
a. raw materials were issued for use in production.
b. direct labor costs were incurred.
c. manufacturing overhead costs for the entire factory were incurred, $596,000. (credit accounts payable and use a single manufacturing overhead control account for the entire factory.)
d. manufacturing overhead was applied to production using a predetermined overhead rate.
e. units that were complete with respect to processing in the blending department were
transferred to the bottling department, $722,000.
f. units that were complete with respect to processing in the bottling department were
transferred to finished goods, $920,000.
g. completed units were sold on account for $1,400,000. the cost of goods sold was
$890,000.
2. post the journal entries from (1) above to t-accounts. the following account balances existed
at the beginning of march. (the beginning balance in the blending department’s work in process account is given above.)
after posting the entries to the t-accounts, find the ending balances in the inventory accounts and the manufacturing overhead account.
Skills Required:
Project Stats:

Price Type: Negotiable

Expired
Total Proposals: 4
1 Current viewersl
14 Total views
Project posted by:

Proposals

Proposals Reputation Price offered
  • 4.9
    73 Jobs 54 Reviews
    $0 in 0 Day
  • 4.8
    546 Jobs 386 Reviews
    $0 in 0 Day
  • 5.0
    12 Jobs 7 Reviews
    $0 in 0 Day
  • 5.0
    2 Jobs 2 Reviews
    $0 in 0 Day