Question: Return to the Blending Department for The Shannon Paint Company

Return to the Blending Department for The Shannon Paint Company in E5- 39B.

Requirements
1. Present the journal entry to record the use of direct materials and direct labor and the allocation of manufacturing overhead to the Blending Department. Also, give the journal entry to record the costs of the gallons 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?

In E5- 39B.
Gallons:
Beginning work in process inventory............................................... 0
Started production........................................................................... 8,200 gallons
Completed and transferred out to Packaging in May...................... 6,100 gallons
Ending work in process inventory (40% of the way through the
blending process)......................................................................... 2,100 gallons
Costs:
Beginning work in process inventory............................................... $ 0
Costs added during May: Direct materials (dyes)........................... $ 5,166
Direct labor....................................................................................... 600
Manufacturing overhead.................................................................. 1,829
Total costs added during May.............................................................. $ 7,595



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  • CreatedAugust 27, 2014
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