Lost 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 Percentage completed - Materials 100% Direct materials - Molding [190.000 Percentage completed - Labor and overhead 60% Direct materials - Assembly 88,600) Units started and completed 17,000 Indirect materials used (51,400) Ending work in process inventory (units) 8,000 Ending inventory $ 70,000 Percentage completed - Materials 100% Percentage completed - Labor and overhead 25% Factory Payroll Costs Direct labor - Molding 42,000 Beginning work in process inventory 53,000 Direct labor - Assembly 55,375 Direct materials added 190,000 Indirect labor used 50.625 Direct labor added 42,000 Total payroll cost (paid in cash) $ 148 0100 Overhead applied (150%% of direct labor) 63.000 Total costs 1348 0100 Manufacturing Overhead Indirect materials used 51,400 Assembly Department ndirect labor used 50,625 Beginning work in process inventory 154,800 Other overhead costs 71.725 Ending work in process inventory 108,325 Total manufacturing overhead incun $ 173.250 Finished Goods Inventory Factory Overhead Applied Beginning inventory 96,400 Molding (150% of direct labor) 63,000 Cost transferred in from assembly 578,400 Assembly [200%% of direct labor] 10.750 Cost of goods sold (506, 100) Total manufacturing overhead applica.750 Ending inventory 168.700 Requirements: | 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 2.] 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) 3.) 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 3. Uther overhead costs [ credit Other Accounts) h. Application of overhead to the two departments i. Transfer of partially completed goods from molding to assembly 1. Transfer of finished goods out of assembly K. Cost of goods soldRequirement 1 Complete the following items by placing your answers in the white boo-c5. Please note that some items are auto-summed. 1.] Compute the equivalent units of production for the molding department for Julv and determine the costs per equivalent unit for direct materials, direct labor, and manufacturing overhead. [Use the Five Step Worksheet to solve] 2.] Compute the cost of the units transferred from molding to assemblv in July and the cost of the ending work in process inventory for the molding department. [Use the Five Step Worksheet to solve] (Step 1] [Step 2] Equivalent Units Factory Flow of Production Molding Department Physical Units Direct Materials Direct Labor Overhead Work in Process, Beginning Started during current period Units to account for Units completed and transferred out From beginning work in process Started and completed Ending work in process Units accounted for Equivalent units of work done to date Total Production Costs [Autosuml Costs To Account For: Work in Process, Beginning (Disregard for FIFO Method Place total in Step 5] 53,000 5 5 5 Costs added in current period Total costs to account for 53,000 g g ; Costs added in current period Equivalent units of work done in current period Cost per equivalent unit of work done in current period Assignment of costs: Completed and transferred out: Work in process, beginning Costs added to beginning work in process Total from beginning inventorv Started and completed in current period Total costs of units completed and transferred out Work in process, Ending Total costs accounted for 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 soldRequirement 3 Prepare summary journal entries to record the transactions and events of July for: (Disregard dates for journal entries) PIRATE MANUFACTURING Journal Entries Date Explanation Debit Credit a. Raw Materials purchases (on credit) b. Direct materials usage (record both departments in one summary entry) C. Indirect materials usage d. Factory payroll costs (Debit a Factory Payroll Control account) e. Direct labor usage (record both departments in one summary entry) f. Indirect labor usage g. Other overhead costs (credit Other Accounts)