Sierra company manufactures woven blankets journal entry

Problem 20-1A Production cost flow and measurement; journal entries L.O. P1, P2, P3, P4

[The following information applies to the questions displayed below.]

Edison Company manufactures wool blankets and accounts for product costs using process costing. The following information is available regarding its May inventories.

Beginning Inventory

Ending Inventory

  Raw materials inventory

$

60,000

$

41,000

  Goods in process inventory

449,000

521,500

  Finished goods inventory

610,000

342,001

The following additional information describes the company's production activities for May.

  Raw materials purchases (on credit)

$

250,000

  Factory payroll cost (paid in cash)

1,850,300

  Other overhead cost (Other Accounts credited)

82,000

  Materials used

       Direct

$

200,500

       Indirect

50,000

  Labor used

       Direct

$

1,060,300

       Indirect

790,000

  Overhead rate as a percent of direct labor

115

%

  Sales (on credit)

$

3,000,000

The predetermined overhead rate was computed at the beginning of the year as 115% of direct labor cost.

\\\\\ rev: 11_02_2011

references

 1.

value: 2.00 points

Problem 20-1A Part 1

Required:

1(a)

Compute the cost of products transferred from production to finished goods. (Omit the "$" sign in your response.)

  Cost of products transferred

$

1(b)

Compute the cost of goods sold. (Omit the "$" sign in your response.)

  Cost of goods sold

$

   rev: 10_31_2011

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 2.

value: 5.00 points

Problem 20-1A Part 2

2(a)

Prepare journal entry dated May 31 to record the raw materials purchases. (Omit the "$" sign in your response.)

Date

General Journal

Debit

Credit

May 31

2(b)

Prepare journal entry dated May 31 to record the direct materials usage. (Omit the "$" sign in your response.)

Date

General Journal

Debit

Credit

May 31

2(c)

Prepare journal entry dated May 31 to record the indirect materials usage. (Omit the "$" sign in your response.)

Date

General Journal

Debit

Credit

May 31

2(d)

Prepare journal entry dated May 31 to record the payroll costs. (Omit the "$" sign in your response.)

Date

General Journal

Debit

Credit

May 31

2(e)

Prepare journal entry dated May 31 to record the direct labor costs. (Omit the "$" sign in your response.)

Date

General Journal

Debit

Credit

May 31

2(f)

Prepare journal entry dated May 31 to record the indirect labor costs. (Omit the "$" sign in your response.)

Date

General Journal

Debit

Credit

May 31

2(g)

Prepare journal entry dated May 31 to record the other overhead costs. (Omit the "$" sign in your response.)

Date

General Journal

Debit

Credit

May 31

2(h)

Prepare journal entry dated May 31 to record the overhead applied. (Omit the "$" sign in your response.)

Date

General Journal

Debit

Credit

May 31

2(i)

Prepare journal entry dated May 31 to record the goods transferred from production to finished goods.(Omit the "$" sign in your response.)

Date

General Journal

Debit

Credit

May 31

2(j)

Prepare journal entry dated May 31 to record the sale of finished goods. (Omit the "$" sign in your response.)

Date

General Journal

Debit

Credit

May 31

Fairfax Company uses weighted-average process costing to account for its production costs. Direct labor is added evenly throughout the process. Direct materials are added at the beginning of the process. During September, the company transferred 760,000 units of product to finished goods. At the end of September, the goods in process inventory consists of 203,000 units that are 90% complete with respect to labor. Beginning inventory had $438,165 of direct materials and $188,540 of direct labor cost. The direct labor cost added in September is $3,582,260, and the direct materials cost added is $2,932,335.

references

 3.

value: 2.00 points

Problem 20-2A Part 1

Required:

1(a)

Determine the equivalent units of production with respect to direct labor.

  Equivalent units

1(b)

Determine the equivalent units of production with respect to direct materials.

  Equivalent units

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 4.

value: 2.00 points

Problem 20-2A Part 2

2.

Compute both the direct labor cost and the direct materials cost per equivalent unit. (Round your answers to 2 decimal place. Omit the "$" sign in your response.)

Per equivalent unit

  Direct labor cost

$

  Direct materials cost

$

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 5.

value: 2.00 points

Problem 20-2A Part 3

3(a)

Compute both direct labor cost and direct materials cost assigned to units completed and transferred out. (Due to rounding of cost per unit, the total costs accounted for in the cost summary may not equal to sum of all the costs given in the problem. Round your per unit costs to 2 decimal places and final answers to the nearest dollar amount.)

Cost transferred out

  Direct materials

$

  Direct labor

$

3(b)

Compute both direct labor cost and direct materials cost assigned to ending goods in process inventory. (Due to rounding of cost per unit, the total costs accounted for in the cost summary may not equal to sum of all the costs given in the problem. Round your per unit costs to 2 decimal places and final answers to the nearest dollar amount.)

Costs of ending goods in process

  Direct materials

$

  Direct labor

$

Problem 20-3A Journalizing in process costing; equivalent units and costs L.O. C2, P1, P2, P3

[The following information applies to the questions displayed below.]

Li Company produces large quantities of a standardized product. The following information is available for its production activities for January.

  Raw materials

  Factory overhead incurred

  Beginning inventory

$

16,000

  Indirect materials used

$

80,500

  Raw materials purchased (on credit)

280,000

  Indirect labor used

40,000

  Direct materials used

(171,500

)

  Other overhead costs

159,920

  Indirect materials used

(80,500

)

  Total factory overhead incurred

$

280,420

  Ending Inventory

$

44,000

  Factory overhead applied

  Factory payroll

     (140% of direct labor cost)

  Direct labor used

$

200,300

  Total factory overhead applied

$

280,420

  Indirect labor used

40,000

  Total payroll cost (paid in cash)

$

240,300

Additional information about units and costs of production activities follows.

  Units

  Costs

  Beginning goods in process inventory

2,600

  Beginning goods in process inventory

  Started

26,000

       Direct materials

$

3,000

  Ending goods in process inventory

4,900

       Direct labor

3,500

       Factory overhead

4,000

$

10,500

  Status of ending goods in process inventory

  Direct materials added

171,500

     Materials—Percent complete

90

 %

  Direct labor added

200,300

     Labor and overhead—Percent complete

75

 %

  Overhead applied (140% of direct labor)

280,420

  Total costs

$

662,720

  Ending goods in process inventory

$

92,911

During January, 22,000 units of finished goods are sold for $160 cash each. Cost information regarding finished goods follows.

  Beginning finished goods inventory

$

150,000

  Cost transferred in

569,809

  Cost of goods sold

(598,390

)

  Ending finished goods inventory

$

121,419

references

 6.

value: 5.00 points

Problem 20-3A Part 1

Required:

1(a)

Prepare journal entry dated January 31 to record the purchase of raw materials. (Omit the "$" sign in your response.)

Date

General Journal

Debit

Credit

Jan. 31

1(b)

Prepare journal entry dated January 31 to record the direct materials usage. (Omit the "$" sign in your response.)

Date

General Journal

Debit

Credit

Jan. 31

1(c)

Prepare journal entry dated January 31 to record the indirect materials usage. (Omit the "$" sign in your response.)