ChipChips Inc. manufactures organic snack crackers. Their production process occurs in two phases: The mixing department...
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ChipChips Inc. manufactures organic snack crackers. Their production process occurs in two phases: The mixing department and the baking department. The weighted average costing method of process costing is being used. The following information is available for the baking department: Current account balances as per GL (unadjusted - these may be incorrect): Work in process, January 31 (materials 100% complete, conversion 40% complete) Finished goods, January 31 2 Additional more detailed cost record information: 3 4 5 Work in process, opening balance, Jan 1 6 (materials 80% complete, conversion 50% complete) Units 42,000 $ 47,000 $ Units 21,000 $ 120,500 86,000 Costs 76,450 $ 120,420 Costs 17 Started into production 18 Costs added during the month 19 Units completed during the month 20 21 There were no finished goods inventories on January 1. 22 23 Required: 24 A. Based on the additional detailed cost record information shown above, calculate the correct amount of cost that should be assigned 25 to the ending work in process and finished goods inventories 26 Note: Please round your cost per EUP to two places after the decimal point! 27 B. Compare the current GL balances for WIP and FG inventories with the correct account balances that you calculated in part (A) above. 28 Post the necessary adjusting entry to correct the GL. Materials Conversion 42,000 12,500 $ 210,400 $ 52,060 ChipChips Inc. manufactures organic snack crackers. Their production process occurs in two phases: The mixing department and the baking department. The weighted average costing method of process costing is being used. The following information is available for the baking department: Current account balances as per GL (unadjusted - these may be incorrect): Work in process, January 31 (materials 100% complete, conversion 40% complete) Finished goods, January 31 2 Additional more detailed cost record information: 3 4 5 Work in process, opening balance, Jan 1 6 (materials 80% complete, conversion 50% complete) Units 42,000 $ 47,000 $ Units 21,000 $ 120,500 86,000 Costs 76,450 $ 120,420 Costs 17 Started into production 18 Costs added during the month 19 Units completed during the month 20 21 There were no finished goods inventories on January 1. 22 23 Required: 24 A. Based on the additional detailed cost record information shown above, calculate the correct amount of cost that should be assigned 25 to the ending work in process and finished goods inventories 26 Note: Please round your cost per EUP to two places after the decimal point! 27 B. Compare the current GL balances for WIP and FG inventories with the correct account balances that you calculated in part (A) above. 28 Post the necessary adjusting entry to correct the GL. Materials Conversion 42,000 12,500 $ 210,400 $ 52,060
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Financial and Managerial Accounting the basis for business decisions
ISBN: 978-0078111044
16th edition
Authors: Jan Williams, Susan Haka, Mark Bettner, Joseph Carcello
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