Question

Return to the Blending Department data for Colour World in E5-27A.
Litres:
Beginning work in process inventory .......................................... 0
Started production...................................................................... 8,000 litres
Completed and transferred out to
Packaging in May................................................................... 6,000 litres
Ending work in process inventory (30% of the way
through the blending process)................................................. 2,000 litres
Costs:
Beginning work in process inventory .......................................... $ 0
Costs added during May:
Direct materials (dyes)............................................................ 4,800
Direct labour.......................................................................... 800
Manufacturing overhead ....................................................... 1,840
Total costs added during May .................................................... $7,440
Requirements
1. Present the journal entry to record the use of direct materials and direct labour and the allocation of manufacturing overhead to the Blending Department. Also, give the journal entry to record the costs of the litres completed and transferred out to the Packaging Department.
2. Post the journal entries to the “Work in Process Inventory—Blending” T-account. What is the ending balance?


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  • CreatedApril 30, 2015
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