Wicker Company manufactures a single product and uses a process costing system. The product goes through two
Question:
a.Raw materials were issued for use in production: department A, $851’000; and department B, 629’000.
b.Direct Labor costs were incurred: department A, $330’000; and department B, $270’000.
c.Manufacturing overhead cost was applied to products: department A, $665’000; and department B, $405’000. d.Products that were complete as to processing in department A were transferred to department B, $1’850’000. e.Products that were complete as to processing in department B were transferred to Finished Goods, $3’200’000.
Required:
•Prepare journal entries to record items (a) through (e) above.
•Post Journal entries from (1) to T-accounts. The balance in department A’s WIP account on April 1 was $150’000; the
balance in the department B’s WIP account was $70’000. After posting entries to the T accounts, find the ending balance in
each department’s WIP account.
•Prepare a production report for department A for April. The following additional information is available regarding production
in department A during April:
Managerial Accounting
ISBN: 978-0078111006
14th edition
Authors: Ray Garrison, Eric Noreen and Peter Brewer