Work Problem P18-39B using the FIFO method. The Dyeing Department beginning work in process of 75 units is 80% complete as to conversion costs. Round equivalent unit costs to four decimal places.
In Exercise
Units
Beginning Work-in-Process Inventory............. 75 rolls
Transferred in from Spinning Department during July.......560 rolls
Completed during July...................500 rolls
Ending Work-in-Process Inventory
(80% complete for conversion work) ...............135 rolls
Costs
Beginning Work-in-Process Inventory (transferred in costs, $4,400;
materials costs, $1,575; conversion costs, $5,199).........$ 11,174
Transferred in from Spinning Department........... 21,000
Materials costs added during July.............. 11,760
Conversion costs added during July (manufacturing wages,
$8,445; manufacturing overhead allocated, $43,508)........ 51,953
Requirements
1. Prepare a production cost report for Carrie’s Dyeing Department for July.
2. Journalize all transactions affecting Carrie’s Dyeing Department during July, including the entries that have already been posted.