The Dog's Breakfast Company manufacture plastic pet food dishes. The dishes pass through two manufacturing departments...

 

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The Dog's Breakfast Company manufacture plastic pet food dishes. The dishes pass through two manufacturing departments - Molding and Finishing. The company uses the first-in-first-out process costing system. During the month of October, the following data were recorded for the Finishing Department: Units in beginning Work In Process inventory.. Completion of beginning Work In Process. Units started.. Units completed... Units in ending Work In Process inventory. Completion of ending Work In Process. Costs associated with Work In Process beginning: Transferred in.... Direct materials.. Conversion costs.. Costs added during current period: Transferred in.. Direct materials.. Direct labour... Manufacturing overhead.. 15,000 10% 60,000 60,000 10,000 90% $6,130 0 950 $27,000 14,250 6,050 8,200 Conversion costs are added evenly throughout the process. Direct materials are added when the product is 50% complete. Inspection occurs when production is 75% complete. Normal spoilage is 5% of all good units that pass inspection. REQUIRED: 1. Prepare a production cost report. Include all 5 steps. 2. What is the value of one pet food dish transferred to finished goods during October? 3. Prepare all necessary journal entries for the Finishing Department. The Dog's Breakfast Company manufacture plastic pet food dishes. The dishes pass through two manufacturing departments - Molding and Finishing. The company uses the first-in-first-out process costing system. During the month of October, the following data were recorded for the Finishing Department: Units in beginning Work In Process inventory.. Completion of beginning Work In Process. Units started.. Units completed... Units in ending Work In Process inventory. Completion of ending Work In Process. Costs associated with Work In Process beginning: Transferred in.... Direct materials.. Conversion costs.. Costs added during current period: Transferred in.. Direct materials.. Direct labour... Manufacturing overhead.. 15,000 10% 60,000 60,000 10,000 90% $6,130 0 950 $27,000 14,250 6,050 8,200 Conversion costs are added evenly throughout the process. Direct materials are added when the product is 50% complete. Inspection occurs when production is 75% complete. Normal spoilage is 5% of all good units that pass inspection. REQUIRED: 1. Prepare a production cost report. Include all 5 steps. 2. What is the value of one pet food dish transferred to finished goods during October? 3. Prepare all necessary journal entries for the Finishing Department.

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Equivalent Units of production Particulars Physical units Transferred in Direct material Conversion units units units units in beginning WIP inventory ... View the full answer