Work in Process Inventory-Sawing
September 1 balance	0
Direct materials	1,824,000
Direct labour	143,000
Manufacturing overhead	167,500

The Harvest TableHarvest Table Company produces dining tables in a three-stage process: sawing, assembly, and staining. Costs incurred in the Sawing Department during September are summarized as follows:

Direct materials (lumber) are added at the beginning of the sawing process, while conversion costs are incurred evenly throughout the process. September activity in the Sawing Department included sawing of 10,000 metres of lumber, which were transferred to the Assembly Department. Also, work began on 2,000 metres of lumber, which on September 30 were 75% of the way through the sawing process.

Requirement 1. Fill in the time line for the Sawing Department.

Start

Complete

Complete

Requirement 2. Use the time line to help you compute the number of equivalent units in the Sawing Department for September.

Harvest Table Company
Sawing Department
Flow of Physical Units and Computation of Equivalent Units
Month Ended September 30
	Flow of	Equivalent Units
	Physical	Direct	Conversion
Flow of Production	Units	Materials	Costs
Units accounted for:
Total equivalent units

Compute the cost per equivalent unit. (For entries with a zero balance, make sure to enter "0" in the appropriate cell(s).)

Harvest Table Company
Sawing Department
Cost per Equivalent Unit
Month Ended September 30
	Direct	Conversion
	Materials	Costs	Total
Cost per equivalent unit

Requirement 3. Show that the sum of (a) cost of goods transferred out of the Sawing Department and (b) ending Work in Process Inventorylong dashSawing equals the total cost accumulated in the department during September.Start by completing the assignment of the costs. (Enter quantities first, then the cost per equivalent unit amounts in the same order as calculated in the preceding step. Round your answers to the nearest whole dollar.)

Harvest Table Company
Sawing Department
Cost Assignment
Month Ended September 30
	Assign costs:	Direct Materials			Conversion Costs				Total
a.			x (		+		)
b.
			x
							x
	Total cost accounted for

Complete the following table to calculate the total cost accumulated in the Sawing Department during September.

Totlal Costs

Requirement 4. Journalize all transactions affecting the company's sawing process during September, including those already posted.

Begin by journalizing the direct materials, direct labour, and manufacturing overhead assigned to the Sawing Department. (Record debits first, then credits. Explanations are not required.)

	Save Accounting Table...			+
	Copy to Clipboard...			+

Journal Entry
Date		Accounts	Debit	Credit

Journalize the entry for the cost of the metres of lumber completed and transferred out to the Assembly Department.

	Save Accounting Table...			+
	Copy to Clipboard...			+

Journal Entry
Date		Accounts	Debit	Credit