The process-costing system at Hoffman Company has a single direct-cost category (direct materials) and a single...

 

  
 
 
 
 
 
 
 

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The process-costing system at Hoffman Company has a single direct-cost category (direct materials) and a single indirect-cost category (conversion costs). Direct materials are added at the beginning of the process. Conversion costs are added evenly during the process. When the assembly department finishes work on each car seat, it is immediately transferred to testing. Hoffman Company uses the weighted-average method of process costing. Data Table Physical Units Direct Conversion (Car Seats) 4,000 Materials Costs $1,248,000 $241,650 Work in process, October 1 Started during October 2017 Completed during October 2017 Work in process, October 31 Total costs added during October 2017 aDegree of completion: direct materials, ?%; conversion costs, 45%. Degree of completion: direct materials, ?%; conversion costs, 65%. 22,500 26,000 500 $4,635,000 $2,575,125 Total costs to account for Total Direct Conversion Production Costs Materials Costs Work in process, beginning $ 1,489,650 $ 1,248,000 $ 241,650 7,210,125 4,635,000 2,575,125 Costs added in current period 2$ 8,699,775 $ 5,883,000 $ 2,816,775 Total costs to account for Total costs accounted for Total Direct Conversion Production Costs Materials Costs Completed and transferred out $ 8,554,000 $ 5,772,000 $ 2,782,000 145,775 111,000 34,775 Work in process, ending $4 8,699,775 $ 5,883,000 $ 2,816,775 Total costs accounted for i Requirement Prepare a set of summarized journal entries for all October 2017 transactions affecting Work in Process-Assembly. Set up a T-account for Work in Process-Assembly and post your entries to it. Prepare a set of summarized journal entries for all October 2017 transactions affecting Work in Process-Assembly. (Record debits first, then credits. Exclude explanations from any jourmal entries.) Begin by recording the purchase and use of direct materials. Journal Entry Accounts Debit Credit JE 1 Record the conversion costs. Journal Entry Accounts Debit Credit JE 2 Prepare a journal entry to transfer out the cost of goods completed. Journal Entry Accounts Debit Credit JE 3 Set up a T-account for Work in Process-Assembly and post your entries to it. Work in Process-Assembly Bal. Bal. Bal. Bal. The process-costing system at Hoffman Company has a single direct-cost category (direct materials) and a single indirect-cost category (conversion costs). Direct materials are added at the beginning of the process. Conversion costs are added evenly during the process. When the assembly department finishes work on each car seat, it is immediately transferred to testing. Hoffman Company uses the weighted-average method of process costing. Data Table Physical Units Direct Conversion (Car Seats) 4,000 Materials Costs $1,248,000 $241,650 Work in process, October 1 Started during October 2017 Completed during October 2017 Work in process, October 31 Total costs added during October 2017 aDegree of completion: direct materials, ?%; conversion costs, 45%. Degree of completion: direct materials, ?%; conversion costs, 65%. 22,500 26,000 500 $4,635,000 $2,575,125 Total costs to account for Total Direct Conversion Production Costs Materials Costs Work in process, beginning $ 1,489,650 $ 1,248,000 $ 241,650 7,210,125 4,635,000 2,575,125 Costs added in current period 2$ 8,699,775 $ 5,883,000 $ 2,816,775 Total costs to account for Total costs accounted for Total Direct Conversion Production Costs Materials Costs Completed and transferred out $ 8,554,000 $ 5,772,000 $ 2,782,000 145,775 111,000 34,775 Work in process, ending $4 8,699,775 $ 5,883,000 $ 2,816,775 Total costs accounted for i Requirement Prepare a set of summarized journal entries for all October 2017 transactions affecting Work in Process-Assembly. Set up a T-account for Work in Process-Assembly and post your entries to it. Prepare a set of summarized journal entries for all October 2017 transactions affecting Work in Process-Assembly. (Record debits first, then credits. Exclude explanations from any jourmal entries.) Begin by recording the purchase and use of direct materials. Journal Entry Accounts Debit Credit JE 1 Record the conversion costs. Journal Entry Accounts Debit Credit JE 2 Prepare a journal entry to transfer out the cost of goods completed. Journal Entry Accounts Debit Credit JE 3 Set up a T-account for Work in Process-Assembly and post your entries to it. Work in Process-Assembly Bal. Bal. Bal. Bal.

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