Two Departments, Journal Entries with Supporting Calculations?Weighted Average Method

Patterson Laboratories, Inc., produces one of its products in two successive departments. All materials are added at the beginning of the process in Department 1; no materials are used in Department 2. Conversion costs are incurred evenly in both departments. Patterson uses the weighted average method for process costing. January 1, 2019, inventory account balances are as follows:

Materials inventory	$30,000
Work in process?Department 1 (3,000 units, 30% complete)
Direct material	4,560
Conversion costs	10,640
Work in process?Department 2 (3,550 units, 40% complete)	43,439
Finished goods inventory (2,000 units @ $16)	32,000

During January, the following transactions occurred:

1. Purchased material on account, $90,000.
2. Placed $84,000 of material into process in Department 1. This $84,000 represents 24,000 units of

materials.

1. Distributed total payroll costs: $108,116 of direct labor to Department 1, $62,700 of direct labor

to Department 2, and $51,000 of indirect labor to Manufacturing Overhead.

1. Incurred other actual manufacturing overhead costs, $81,000. (Credit Other Accounts.)
2. Applied overhead to the two processing departments: $88,000 to Department 1 and $43,900 to

Department 2.

1. Transferred 25,000 completed units from Department 1 to Department 2. The 2,000 units remaining

in Department 1 were 20% completed with respect to conversion costs.

1. Transferred 26,000 completed units from Department 2 to finished goods inventory. The 2,550

units remaining in Department 2 were 70% completed with respect to conversion costs.

1. Sold 20,000 units on account at $27 per unit. Patterson uses weighted average inventory costing procedures

for the finished goods inventory.

1. Record the January transactions in general journal form for Department 1 and Department 2.

Hint: Complete the product cost reports for Departments 1 and 2 before entering journal entries for transactions 6, 7, and 8.

Generaljournal Ref. Description Debit Credit 1. 9 9 2. 9 9 3. Work in processiDepartment 1 Work in process-Department 2 9 9 4. 9 Other accounts 5. Work in processiDepartment 1 9 9 6. 9 9 7 9 9 8. 9 9 To record sales. 9 9 To record cost of goods sold. Determine the balances remaining in the Materials Inventory account, in each work in process account, and in the Finished Goods Inventory account. Determine the balances remaining in the Materials Inventory account, in each work in process account. and in the Finished Goods Inventory account. Enter answers in the order ofyourjournal entries in part a., using the rst available answer box in the appropriate debit or credit column. Materials Inventory c. Prepare a product cost report (with its supporting calculations) for Department 2. Round average cost per equivalent unit to two decimal places. Use rounded answers for subsequent calculations. Round other answers to the nearest whole number. Patterson Laboratories, Inc. Departmentz Flow of Units and Equivalent Units Calculations.]anuary 2019 Equivalent Units % Work Direct % Work Conversion Done Materials Done Costs CompletefTransferred O 0 % 0 0 [it] 0 Ending Inventory 0 0 \"A: 0 0 [it] 0 Total 0 0 0 Product Cost Report Direct Conversion Materials Costs Beginning Inventory $ 0 $ 0 $ 0 Current 0 0 0 Total Costs to Account For 33 0 $ 0 $ 0 +Tota| Equivalent Units 0 0 Average cost! Equivalent unit [round 2 decimal places) 1% 0 $ 0 Complete .1 Transferred: Direct Materials 3; 0 Conversion costs 0 Cost of Goods Manufactured $ 0 Ending Inventory: Direct Materials '16 0 Conversion costs 0 Cost of Ending Inventory 3; 0 Total Costs Allocated $ 0 b. Prepare a product cost report [with its supporting calculations) for Department 1' Round average cost per equivalent unit to two decimal places. Use rounded answers for subsequent calculations. Round other answers to the nearest whole number. Patterson Laboratories, Inc. Department 1 Flow of Units and Equivalent Units Calculations, january 2019 Equivalent Units % Work Direct % Work Conversion Done Materials Done Costs CompletefTransferred 0 0% 0 0 % 0 Ending Inventory 0 0% 0 0 \"If: 0 Total 0 0 0 Product Cost Report Direct Conversion Materials Costs Beginning Inventory 5 0 $ 0 $ 0 Current 0 0 0 Total Costs to Account For 5 E] $ 0 5 U +Total Equivalent Units 0 0 Average cost;' Equivalent unit [round 2 decimal places) $ 0 5 0 Complete iTransierred: Direct Materials 35 0 Conversion costs Cost of Goods Manufactured $ Ending Inventory: Direct Materials 5 0 Conversion costs 0 Cost ofEnding Inventory 5 E] Total Costs Allocated $ 0 Determine the balances remaining in the Materials Inventory account, in each work in process account, and in the Finished Goods Inventory account