Pacific Inc uses a process costing system. A unit of product passes through three departments- Moulding....

 

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Pacific Inc uses a process costing system. A unit of product passes through three departments- Moulding. Assembly and Finishing before it is completed. The following production took place in the Finishing Department during August: Work in process inventory, 1 August Units transferred in from Assembly Department Units transferred out to finished goods inventory Raw material is added at the beginning of processing in the Finishing Department. The work in process inventory was 70 per cent complete as to conversion on 1 August, and 40 per cent complete as to conversion on 31 August. Units 1400 14 000 11 900 Pacific Inc uses the weighted average method of process costing. The equivalent units and costs per equivalent unit of production for each cost element for the Finishing Department are shown as follows: Transferred-in costs Raw material Conversion cost Total Equivalent units Cost per equivalent unit 15 400 15 400 13 300 $5.00 1.00 3.00 $9.00 Required: 1. Calculate the following amounts: (a) Cost of units transferred to finished goods inventory during August. (b) Cost of the Finishing Department's work in process inventory on 31 August. [10 Marks] 2. The total costs of prior departments included in the work in process inventory of the Finishing Department on 1 August amounted to $6750. Prepare the journal entry to record the transfer of the goods from the Assembly Department to the Finishing Department during August. [5 Marks] Pacific Inc uses a process costing system. A unit of product passes through three departments- Moulding. Assembly and Finishing before it is completed. The following production took place in the Finishing Department during August: Work in process inventory, 1 August Units transferred in from Assembly Department Units transferred out to finished goods inventory Raw material is added at the beginning of processing in the Finishing Department. The work in process inventory was 70 per cent complete as to conversion on 1 August, and 40 per cent complete as to conversion on 31 August. Units 1400 14 000 11 900 Pacific Inc uses the weighted average method of process costing. The equivalent units and costs per equivalent unit of production for each cost element for the Finishing Department are shown as follows: Transferred-in costs Raw material Conversion cost Total Equivalent units Cost per equivalent unit 15 400 15 400 13 300 $5.00 1.00 3.00 $9.00 Required: 1. Calculate the following amounts: (a) Cost of units transferred to finished goods inventory during August. (b) Cost of the Finishing Department's work in process inventory on 31 August. [10 Marks] 2. The total costs of prior departments included in the work in process inventory of the Finishing Department on 1 August amounted to $6750. Prepare the journal entry to record the transfer of the goods from the Assembly Department to the Finishing Department during August. [5 Marks]

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