Chemco Incorporated manufacturers a single product that passes through four sequential processes. Accounting and production data...

 

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Chemco Incorporated manufacturers a single product that passes through four sequential processes. Accounting and production data for August for Department 3 are as follows: Work in Process, August 1 Transferred in during August Good Units completed & T.O. Normal Spoilage Abnormal Spoilage Work in Process, August 31 Costs Added During August Physical Transferred- Direct Conversion in Costs materials costs Units 2,000 $5,600 $ 0 $ 2,880 70,000 64,000 1,600 400 6,000 $206,080 $89,100 $241,200 All direct materials are added at the end of the process in Department 3. Conversion costs are added evenly throughout the process. The beginning work in process is 40% complete as to conversion costs. The ending work in process is 30% complete as to conversion costs. Inspection occurs at the 100% of completion stage. Use two decimal places for your cost per equivalent unit. Required: 1. Prepare a cost of production report for Department 3 for August using the Weighted-Average method of process costing. 2. Prepare the journal entries to record: a. The transfer of cost from Department 2 to Department 3 during August. b. The current direct materials and conversion costs added during August. c. The transfer of costs from Department 3 to Department 4 during August. d. The cost of the abnormal spoilage. Chemco Incorporated manufacturers a single product that passes through four sequential processes. Accounting and production data for August for Department 3 are as follows: Work in Process, August 1 Transferred in during August Good Units completed & T.O. Normal Spoilage Abnormal Spoilage Work in Process, August 31 Costs Added During August Physical Transferred- Direct Conversion in Costs materials costs Units 2,000 $5,600 $ 0 $ 2,880 70,000 64,000 1,600 400 6,000 $206,080 $89,100 $241,200 All direct materials are added at the end of the process in Department 3. Conversion costs are added evenly throughout the process. The beginning work in process is 40% complete as to conversion costs. The ending work in process is 30% complete as to conversion costs. Inspection occurs at the 100% of completion stage. Use two decimal places for your cost per equivalent unit. Required: 1. Prepare a cost of production report for Department 3 for August using the Weighted-Average method of process costing. 2. Prepare the journal entries to record: a. The transfer of cost from Department 2 to Department 3 during August. b. The current direct materials and conversion costs added during August. c. The transfer of costs from Department 3 to Department 4 during August. d. The cost of the abnormal spoilage.

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1 Flow of production Work in process beginning Started during current period To account for Complete... View the full answer