3. Process Costing (Weighted-Average Method) - 16pts: Partners in Crime Paint Company uses the weighted- average...

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3. Process Costing (Weighted-Average Method) - 16pts: Partners in Crime Paint Company uses the weighted- average method to account for costs of production in its process costing system. Partners in Crime manufactures its base paint in two separate departments: Mixing and Packaging. The following information is for the Mixing Department (the first production department in its production process) for the month of March: Beginning work in process inventory Units started during March Units completed and transferred to the Packaging Department during March Ending work in process inventory . Units (gallons) o o $52,125 in conversion costs 3. 69,500 391,700 407,600 53,600 Percent Complete with Respect to DM 100% 100% 75% The accounting records for the Mixing Department indicate the following additional information: beginning WIP Inventory-Mixing Department totaled $191,125, broken down as follows: $139,000 in DM costs Costs Percent Complete with Respect to Conversion. Costs (DL+OH) 40% 100% 55% PART A (4pts) - Calculations for the Mixing Department (use the Weighted-Average Method): 1. Calculate the equivalent units of production for March for DM and Conversion Costs (DL+OH). 2. Calculate the cost per equivalent unit of production (EUP) for DM and for Conversion Costs for March (round cost per EUP to the nearest cent, i.e. to two decimal places). Using the costs per equivalent unit calculated in PART A, 2.: a. Assign costs to the completed units transferred out of the Mixing Department to the Packaging Department b. Assign costs to the units remaining in ending WIP Inventory - Mixing Department PART B (8pts) - Journal Entries: Prepare journal entries for the month of March to record the below transactions (make sure to use proper journal entry formatting and include a brief description of each entry). 1. Raw materials purchases: Assume the firm purchased $902,000 worth of raw materials on account in March. 2. Direct materials used in production: Mixing Department: $822,570; Packaging Department: $71,910. 3. Direct labor used in production (use the Factory Wages Payable account for the credit): Mixing Department: $125,344; Packaging Department: $19,670. 4. Overhead costs applied: Mixing Department: $188,016; Packaging Department: $29,505. 5. Transfer of costs of units transferred out from the Mixing Department to the Packaging Department (amount calculated in A.3.a. above). 6. Transfer of costs of completed units transferred out from the Packaging Department to Finished Goods Inventory. Assume the costs of these finished goods transferred out from the Packaging Department to Finished Goods Inventory during March was $1,350,927. 7. Transfer of costs from Finished Goods Inventory to COGS. Assume the costs of the units sold transferred from Finished Goods to COGS was $1,298,621. 8. Assignment of any underapplied or overapplied overhead to the Cost of Goods Sold account (Assume the amount is not material). Assume that actual Indirect materials used = $19,501, actual Indirect labor used = $38,707, and actual other overhead costs incurred = $159,340. Deadline: you must submit this assignment electronically via Connect using the submission link I have provided in the module by 11:59pm, Sunday 4/4. Make sure your name, your TA's name, and your discussion section time are clearly indicated on your submission to ensure you receive credit. PART C (4pts) - Balance Sheet accounts, ending balances: Using all of the information given above, determine the March 31st ending balances of each the firm's inventory accounts listed below. You must show all of your work, either using formulas/calculations or T-accounts. 1) Raw Materials Inventory account (Assume the beginning balance of the raw materials inventory account as of March 1st was $97,415). 2) WIP Inventory-Mixing (Assume the beginning balance of WIP-Mixing is $191,125, as given in the information above). 3) WIP Inventory-Packaging (Assume the beginning balance of WIP-Packaging is $223,009). 4) Finished Goods Inventory (Assume the Finished Goods Inventory balance as of March 1st was $95,813). 3. Process Costing (Weighted-Average Method) - 16pts: Partners in Crime Paint Company uses the weighted- average method to account for costs of production in its process costing system. Partners in Crime manufactures its base paint in two separate departments: Mixing and Packaging. The following information is for the Mixing Department (the first production department in its production process) for the month of March: Beginning work in process inventory Units started during March Units completed and transferred to the Packaging Department during March Ending work in process inventory . Units (gallons) o o $52,125 in conversion costs 3. 69,500 391,700 407,600 53,600 Percent Complete with Respect to DM 100% 100% 75% The accounting records for the Mixing Department indicate the following additional information: beginning WIP Inventory-Mixing Department totaled $191,125, broken down as follows: $139,000 in DM costs Costs Percent Complete with Respect to Conversion. Costs (DL+OH) 40% 100% 55% PART A (4pts) - Calculations for the Mixing Department (use the Weighted-Average Method): 1. Calculate the equivalent units of production for March for DM and Conversion Costs (DL+OH). 2. Calculate the cost per equivalent unit of production (EUP) for DM and for Conversion Costs for March (round cost per EUP to the nearest cent, i.e. to two decimal places). Using the costs per equivalent unit calculated in PART A, 2.: a. Assign costs to the completed units transferred out of the Mixing Department to the Packaging Department b. Assign costs to the units remaining in ending WIP Inventory - Mixing Department PART B (8pts) - Journal Entries: Prepare journal entries for the month of March to record the below transactions (make sure to use proper journal entry formatting and include a brief description of each entry). 1. Raw materials purchases: Assume the firm purchased $902,000 worth of raw materials on account in March. 2. Direct materials used in production: Mixing Department: $822,570; Packaging Department: $71,910. 3. Direct labor used in production (use the Factory Wages Payable account for the credit): Mixing Department: $125,344; Packaging Department: $19,670. 4. Overhead costs applied: Mixing Department: $188,016; Packaging Department: $29,505. 5. Transfer of costs of units transferred out from the Mixing Department to the Packaging Department (amount calculated in A.3.a. above). 6. Transfer of costs of completed units transferred out from the Packaging Department to Finished Goods Inventory. Assume the costs of these finished goods transferred out from the Packaging Department to Finished Goods Inventory during March was $1,350,927. 7. Transfer of costs from Finished Goods Inventory to COGS. Assume the costs of the units sold transferred from Finished Goods to COGS was $1,298,621. 8. Assignment of any underapplied or overapplied overhead to the Cost of Goods Sold account (Assume the amount is not material). Assume that actual Indirect materials used = $19,501, actual Indirect labor used = $38,707, and actual other overhead costs incurred = $159,340. Deadline: you must submit this assignment electronically via Connect using the submission link I have provided in the module by 11:59pm, Sunday 4/4. Make sure your name, your TA's name, and your discussion section time are clearly indicated on your submission to ensure you receive credit. PART C (4pts) - Balance Sheet accounts, ending balances: Using all of the information given above, determine the March 31st ending balances of each the firm's inventory accounts listed below. You must show all of your work, either using formulas/calculations or T-accounts. 1) Raw Materials Inventory account (Assume the beginning balance of the raw materials inventory account as of March 1st was $97,415). 2) WIP Inventory-Mixing (Assume the beginning balance of WIP-Mixing is $191,125, as given in the information above). 3) WIP Inventory-Packaging (Assume the beginning balance of WIP-Packaging is $223,009). 4) Finished Goods Inventory (Assume the Finished Goods Inventory balance as of March 1st was $95,813).

Answer rating: 100% (QA)

Part A Equivalent Units of Production for DM and Conversion Costs DLOH Equivalent Units of DM Units started during March Ending WIP Inventory Mixing Department Beginning WIP Inventory x Percent Comple... View the full answer