25. Bishop Corporation uses normal process costing (weighted average method) and applies manufacturing overhead at a...

 

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25. Bishop Corporation uses normal process costing (weighted average method) and applies manufacturing overhead at a rate of 70% of direct labor costs. Bishop has two departments: Molding and Assembly (beginning work-in-process balance = $50,000 in Molding and $60,000 in Assembly). Altogether, Bishop purchased $500,000 in materials on account last period. Bishop also spent $125,000 cash on manufacturing overhead and recognized $20,000 in factory equipment depreciation. Bishop accrued $200,000 in direct labor costs in Molding and $150,000 in direct labor costs in Assembly. Bishop used $250,000 worth of direct materials in Molding, $200,000 worth of direct materials in Assembly, and $80,000 in indirect materials. The process costing report at the end of the period was as follows: Cost of goods completed and transferred out Cost of ending work-in-process Cost of abnormal spollage MOLDING $540,000 0170088,000 12,000 las ng bree ASSEMBLY $807,244 233,469 14,287 og vid liss Gau 000,02€ The beginning balance in raw materials inventory was $75,000, the beginning balance in finished goods inventory was $150,000, and the beginning cash balance was $500,000. Bishop sold goods costing $800,000 and spent $210,000 cash on period expenses. Make all journal entries for the period and post them to t-accounts. 25. Bishop Corporation uses normal process costing (weighted average method) and applies manufacturing overhead at a rate of 70% of direct labor costs. Bishop has two departments: Molding and Assembly (beginning work-in-process balance = $50,000 in Molding and $60,000 in Assembly). Altogether, Bishop purchased $500,000 in materials on account last period. Bishop also spent $125,000 cash on manufacturing overhead and recognized $20,000 in factory equipment depreciation. Bishop accrued $200,000 in direct labor costs in Molding and $150,000 in direct labor costs in Assembly. Bishop used $250,000 worth of direct materials in Molding, $200,000 worth of direct materials in Assembly, and $80,000 in indirect materials. The process costing report at the end of the period was as follows: Cost of goods completed and transferred out Cost of ending work-in-process Cost of abnormal spollage MOLDING $540,000 0170088,000 12,000 las ng bree ASSEMBLY $807,244 233,469 14,287 og vid liss Gau 000,02€ The beginning balance in raw materials inventory was $75,000, the beginning balance in finished goods inventory was $150,000, and the beginning cash balance was $500,000. Bishop sold goods costing $800,000 and spent $210,000 cash on period expenses. Make all journal entries for the period and post them to t-accounts.

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Date Account title and description Materials Inventory Acounts payable To record purchase of direct ... View the full answer