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1. Entries for Materials Cost Flows in a Process Cost System The Hershey Company manufactures chocolate...

1.

Entries for Materials Cost Flows in a Process Cost System

The Hershey Company manufactures chocolate confectionery products. The three largest raw materials are cocoa, sugar, and dehydrated milk. These raw materials first go into the Blending Department. The blended product is then sent to the Molding Department, where the bars of candy are formed. The candy is then sent to the Packing Department, where the bars are wrapped and boxed. The boxed candy is then sent to the distribution center, where it is eventually sold to food brokers and retailers.

Show the accounts debited and credited for each of the following business events:

a. Materials used by the Blending Department.

Debit account
Credit account
Credit account
Credit account

b. Transfer of blended product to the Molding Department.

Debit account
Credit account

c. Transfer of chocolate to the Packing Department.

Debit account
Credit account

d. Transfer of boxed chocolate to the distribution center.

Debit account
Credit account

e. Sale of boxed chocolate.

Debit account
Credit account

2.

Equivalent Units of Production

The Converting Department of Soft Touch Towel and Tissue Company had 560 units in work in process at the beginning of the period, which were 25% complete. During the period, 11,600 units were completed and transferred to the Packing Department. There were 640 units in process at the end of the period, which were 40% complete. Direct materials are placed into the process at the beginning of production.

Determine the number of equivalent units of production with respect to direct materials and conversion costs. If an amount is zero, enter in "0".

Soft Touch Towel and Tissue Company
Number of Equivalent Units of Production
Whole Units Direct Materials
Equivalent Units
Conversion
Equivalent Units
Inventory in process, beginning
Started and completed
Transferred to Packing Department
Inventory in process, ending
Total

3.

Equivalent Units of Production

The following information concerns production in the Baking Department for March. All direct materials are placed in process at the beginning of production.

ACCOUNT Work in Process—Baking Department ACCOUNT NO.
Date Item Debit Credit Balance
Debit Credit
March 1 Bal., 6,000 units, 4/5 completed 24,000
31 Direct materials, 108,000 units 216,000 240,000
31 Direct labor 61,340 301,340
31 Factory overhead 34,510 335,850
31 Goods finished, 109,500 units 325,230 10,620
31 Bal. ? units, 2/5 completed 10,620

a. Determine the number of units in work in process inventory at March 31.
units

b. Determine the equivalent units of production for direct materials and conversion costs in March. If an amount is zero, enter in "0".

Baking Department
Equivalent Units of Production for Direct Materials and Conversion Costs
For March
Whole Units Direct Materials
Equivalent Units
Conversion Equivalent Units
Inventory in process, March 1
Started and completed in March
Transferred to finished goods in March
Inventory in process, March 31
Total

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