Green Company uses weighted average process costing to determine the cost of units. They produce their...

  
 

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Green Company uses weighted average process costing to determine the cost of units. They produce their finished product in two processing departments: Refining and Packaging. The following information is available for the month of July: Refining Department: The beginning work in process inventory was $144,033 ($61,090 direct material cost and $82,943 conversion costs) and consisted of 4,100 units. During July, an additional 18,300 units were started into production. During July, a total of 17,600 units were completed and transferred to the Packaging Department. The ending work in process inventory consisted of 4,800 units which were 60% complete as to conversion costs. The following costs were incurred during July: direct materials $270,430, direct labor $180,000; and factory overhead $324,833. Direct materials are added at the beginning of the process in the Refining Department and conversion costs are incurred evenly throughout the production process. Packaging Department: The beginning work in process inventory was $125,922 ($112,090 transferred-in costs and $13,832 conversion costs) and consisted of 2,600 units. During July, a total of 16,400 units were completed and transferred out to Finished Goods Inventory. The ending work in process inventory consisted of 3,800 units which were 30% complete as to conversion costs. The following costs were incurred during July: direct materials $$154,160, direct labor $210,000, and factory overhead $240,978. Direct materials are added at the end of the process in the Packaging Department and conversion costs are incurred evenly throughout the production process. REQUIRED: 1. Prepare a production report for the Refining Department for the month of July in the attached workpapers. 2. Prepare the general journal entry to record the transfer of units from the Refining Department to the Packaging Department for July in the attached workpapers. 3. Prepare a production report for the Packaging Department for the month of July in the attached workpapers. 4. Prepare the general journal entry to record the transfer of units from the Packaging Department to Finished Goods Inventory for July in the attached workpapers. 5. Enter the appropriate cost data in the Work in Process T-accounts for the Refining Department and for the Packaging Department for the month of July in the attached workpapers. Part A: 1. SCHEDULE OF EQUIVALENT UNITS Beg WIP Units Started Total Units to Account For Units Transferred Out End WIP Total Units Accounted For Equivalent Units of Production 2. COMPUTATION OF PER UNIT COSTS BEG CURRENT WIP + COSTS DM CC Totals 3. ASSIGNMENT OF COSTS TO PRODUCTION Cost of Goods Manufactured: Ending Work in Process: DM CC Total Ending Work in Process Total Cost Assigned Part B: Account Titles GREEN COMPANY REFINING DEPARTMENT PRODUCTION REPORT JULY DM TOTAL = COSTS CC 10 EQUIV. UNITS GENERAL JOURNAL = UNIT COST I DR CR Part C: GREEN COMPANY PACKAGING DEPARTMENT PRODUCTION REPORT JULY 1. SCHEDULE OF EQUIVALENT UNITS Beg WIP Units Transferred In Total Units to Account For T-IN Units Transferred Out End WIP Total Units Accounted For Equivalent Units of Production 2. COMPUTATION OF PER UNIT COSTS BEG CURRENT TOTAL WIP + COSTS = COSTS T T-IN CC DM Totals 3. ASSIGNMENT OF COSTS TO PRODUCTION Cost of Goods Manufactured: Ending Work in Process: T-IN CC DM Total Ending Work in Process Total Cost Assigned Part D: Account Titles Part E: Work In Process-Refining CC EQUIV. UNITS = DM E UNIT COST DR Work In Process-Packaging GENERAL JOURNAL CR Green Company uses weighted average process costing to determine the cost of units. They produce their finished product in two processing departments: Refining and Packaging. The following information is available for the month of July: Refining Department: The beginning work in process inventory was $144,033 ($61,090 direct material cost and $82,943 conversion costs) and consisted of 4,100 units. During July, an additional 18,300 units were started into production. During July, a total of 17,600 units were completed and transferred to the Packaging Department. The ending work in process inventory consisted of 4,800 units which were 60% complete as to conversion costs. The following costs were incurred during July: direct materials $270,430, direct labor $180,000; and factory overhead $324,833. Direct materials are added at the beginning of the process in the Refining Department and conversion costs are incurred evenly throughout the production process. Packaging Department: The beginning work in process inventory was $125,922 ($112,090 transferred-in costs and $13,832 conversion costs) and consisted of 2,600 units. During July, a total of 16,400 units were completed and transferred out to Finished Goods Inventory. The ending work in process inventory consisted of 3,800 units which were 30% complete as to conversion costs. The following costs were incurred during July: direct materials $$154,160, direct labor $210,000, and factory overhead $240,978. Direct materials are added at the end of the process in the Packaging Department and conversion costs are incurred evenly throughout the production process. REQUIRED: 1. Prepare a production report for the Refining Department for the month of July in the attached workpapers. 2. Prepare the general journal entry to record the transfer of units from the Refining Department to the Packaging Department for July in the attached workpapers. 3. Prepare a production report for the Packaging Department for the month of July in the attached workpapers. 4. Prepare the general journal entry to record the transfer of units from the Packaging Department to Finished Goods Inventory for July in the attached workpapers. 5. Enter the appropriate cost data in the Work in Process T-accounts for the Refining Department and for the Packaging Department for the month of July in the attached workpapers. Part A: 1. SCHEDULE OF EQUIVALENT UNITS Beg WIP Units Started Total Units to Account For Units Transferred Out End WIP Total Units Accounted For Equivalent Units of Production 2. COMPUTATION OF PER UNIT COSTS BEG CURRENT WIP + COSTS DM CC Totals 3. ASSIGNMENT OF COSTS TO PRODUCTION Cost of Goods Manufactured: Ending Work in Process: DM CC Total Ending Work in Process Total Cost Assigned Part B: Account Titles GREEN COMPANY REFINING DEPARTMENT PRODUCTION REPORT JULY DM TOTAL = COSTS CC 10 EQUIV. UNITS GENERAL JOURNAL = UNIT COST I DR CR Part C: GREEN COMPANY PACKAGING DEPARTMENT PRODUCTION REPORT JULY 1. SCHEDULE OF EQUIVALENT UNITS Beg WIP Units Transferred In Total Units to Account For T-IN Units Transferred Out End WIP Total Units Accounted For Equivalent Units of Production 2. COMPUTATION OF PER UNIT COSTS BEG CURRENT TOTAL WIP + COSTS = COSTS T T-IN CC DM Totals 3. ASSIGNMENT OF COSTS TO PRODUCTION Cost of Goods Manufactured: Ending Work in Process: T-IN CC DM Total Ending Work in Process Total Cost Assigned Part D: Account Titles Part E: Work In Process-Refining CC EQUIV. UNITS = DM E UNIT COST DR Work In Process-Packaging GENERAL JOURNAL CR

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