Beauty Soft Inc. produces an oil that is widely used to soften and moisturize dry skin. The
Question:
Beauty Soft Inc. produces an oil that is widely used to soften and moisturize dry skin. The oil is produced in three processes: Refining, Blending, and Mixing. Raw oil materials are introduced at the beginning of the refining process. The amount of the oil does not change throughout the refining process.
The following details the data for the Work-in-Process Refining Department account for the month of July. The July 1 Work-in-Process Inventory contains $2,220 in material costs.
Work-in-Process: Refining | Cost |
Beginning balance (7,000 gallons) | $10,250 |
Materials (30,000 gal.) | $18,500 |
Direct labor | $21,800 |
Overhead | $32,700 |
At the end of July, there were 8,000 gallons of oil in the Refining Department which were 60% complete. Beauty Soft Inc. uses weighted-average costing.
Required: Please show all calculations. Calculations count points and if calculations are not shown points will be deducted
a) Prepare a Production Report for the Refining Department for the month of July
b) Prepare the journal entry to record the assigned cost
Managerial Accounting
ISBN: 978-1259307416
16th edition
Authors: Ray Garrison, Eric Noreen, Peter Brewer