Cost Accounting Comprehensive Problem Two Comprehensive Problem Two focuses on Process Cost Accounting. Complete the requirements...

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Cost Accounting Comprehensive Problem Two Comprehensive Problem Two focuses on Process Cost Accounting. Complete the requirements for Pirate Manufacturing Company given the following information. Use the FIFO Method to assign costs. Pirate Manufacturing Company is a maker of plastic figurine collectibles for the sports and entertainment industries, and they use process costing (FIFO Method to assign cost flows). Pirate Manufacturing produces their goods by having them pass through a molding process and then through an assembly process. Information related to its manufacturing activities for the month July are as follows: Raw Materials Molding Department Beginning inventory 100,000 Beginning work in process inventory (units) 5,000 Raw materials purchased on credit 300,000 Direct materials - Molding -190,000 Percentage completed - Materials Percentage completed - Labor and overhead 100% 60% Direct materials - Assembly -88,600 Units started and completed 17,000 Indirect materials used Ending inventory Factory Payroll Direct labor - Molding Direct labor- Assembly -51,400 Ending work in process inventory (units) 8,000 70,000 Percentage completed - Materials Percentage completed - Labor and overhead 100% 25% Costs 42,000 Beginning work in process inventory 53,000 55,375 Direct materials added 190,000 Indirect labor used 50,625 Direct labor added 42,000 Total payroll cost (paid in cash) 148,000 Overhead applied (150% of direct labor) 63,000 Total costs 348,000 Manufacturing Overhead Indirect materials used 51,400 Assembly Department Indirect labor used 50,625 Beginning work in process inventory Other overhead costs 71,725 Ending work in process inventory 154,800 108,325 Total manufacturing overhead incurred 173,750 Factory Overhead Applied Molding (150% of direct labor) Assembly (200% of direct labor) Total manufacturing overhead applied 63,000 110,750 173,750 Finished Goods Inventory Beginning inventory Cost of goods sold Cost transferred in from assembly Ending inventory 96,400 578,400 -506,100 168,700 Requirements: 1.) 2.) 3.) Compute the equivalent units of production for the molding department for July and determine the costs per equivalent unit for direct materials, direct labor, and manufacturing overhead. (Use the Five Step Worksheet to solve) Compute the cost of the units transferred from molding to assembly in July and the cost of the ending work in process inventory for the molding department. (Use the Five Step Worksheet to solve) Prepare summary journal entries to record the transactions and events of July for: a. Raw materials purchases b. Direct materials usage (record both departments in one summary entry) c. Indirect materials usage (Pirate only uses one Factory Overhead account for all departments) d. Factory payroll costs e. Direct labor usage f. Indirect labor usage g. Other overhead costs (credit Other Accounts) h. Application of overhead to the two departments i. Transfer of partially completed goods from molding to assembly j. Transfer of finished goods out of assembly k. Cost of goods sold Cost Accounting Comprehensive Problem Two Comprehensive Problem Two focuses on Process Cost Accounting. Complete the requirements for Pirate Manufacturing Company given the following information. Use the FIFO Method to assign costs. Pirate Manufacturing Company is a maker of plastic figurine collectibles for the sports and entertainment industries, and they use process costing (FIFO Method to assign cost flows). Pirate Manufacturing produces their goods by having them pass through a molding process and then through an assembly process. Information related to its manufacturing activities for the month July are as follows: Raw Materials Molding Department Beginning inventory 100,000 Beginning work in process inventory (units) 5,000 Raw materials purchased on credit 300,000 Direct materials - Molding -190,000 Percentage completed - Materials Percentage completed - Labor and overhead 100% 60% Direct materials - Assembly -88,600 Units started and completed 17,000 Indirect materials used Ending inventory Factory Payroll Direct labor - Molding Direct labor- Assembly -51,400 Ending work in process inventory (units) 8,000 70,000 Percentage completed - Materials Percentage completed - Labor and overhead 100% 25% Costs 42,000 Beginning work in process inventory 53,000 55,375 Direct materials added 190,000 Indirect labor used 50,625 Direct labor added 42,000 Total payroll cost (paid in cash) 148,000 Overhead applied (150% of direct labor) 63,000 Total costs 348,000 Manufacturing Overhead Indirect materials used 51,400 Assembly Department Indirect labor used 50,625 Beginning work in process inventory Other overhead costs 71,725 Ending work in process inventory 154,800 108,325 Total manufacturing overhead incurred 173,750 Factory Overhead Applied Molding (150% of direct labor) Assembly (200% of direct labor) Total manufacturing overhead applied 63,000 110,750 173,750 Finished Goods Inventory Beginning inventory Cost of goods sold Cost transferred in from assembly Ending inventory 96,400 578,400 -506,100 168,700 Requirements: 1.) 2.) 3.) Compute the equivalent units of production for the molding department for July and determine the costs per equivalent unit for direct materials, direct labor, and manufacturing overhead. (Use the Five Step Worksheet to solve) Compute the cost of the units transferred from molding to assembly in July and the cost of the ending work in process inventory for the molding department. (Use the Five Step Worksheet to solve) Prepare summary journal entries to record the transactions and events of July for: a. Raw materials purchases b. Direct materials usage (record both departments in one summary entry) c. Indirect materials usage (Pirate only uses one Factory Overhead account for all departments) d. Factory payroll costs e. Direct labor usage f. Indirect labor usage g. Other overhead costs (credit Other Accounts) h. Application of overhead to the two departments i. Transfer of partially completed goods from molding to assembly j. Transfer of finished goods out of assembly k. Cost of goods sold