Question

1. Entries for Flow of Factory Costs for Process Cost System

   Radford Inc. manufactures a sugar product by a continuous process, involving three production departments—Refining, Sifting, and Packing. Assume that records indicate that direct materials, direct labor, and applied factory overhead for the first department, Refining, were $343,400, $120,200, and $79,000, respectively. Also, work in process in the Refining Department at the beginning of the period totaled $19,200, and work in process at the end of the period totaled $23,700.

   a. Journalize the entries to record the flow of costs into the Refining Department during the period for (1) direct materials, (2) direct labor, and (3) factory overhead. If an amount box does not require an entry, leave it blank.

   1.
   2.
   3.

   b. Journalize the entry to record the transfer of production costs to the second department, Sifting. If an amount box does not require an entry, leave it blank.

Equivalent Units of Production

The Converting Department of Worley Company had 1,000 units in work in process at the beginning of the period, which were 70% complete. During the period, 20,800 units were completed and transferred to the Packing Department. There were 1,120 units in process at the end of the period, which were 30% 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".

Worley 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: weighted average method

The Converting Department of Tender Soft Tissue Company uses the weighted average method and had 2,600 units in work in process that were 70% complete at the beginning of the period. During the period, 32,800 units were completed and transferred to the Packing Department. There were 1,400 units in process that were 30% complete at the end of the period.

a. Determine the number of whole units to be accounted for and to be assigned costs for the period.
_________________ units

b. Determine the number of equivalent units of production for the period. Assume that direct materials are placed in process during production.
_________________ units

Answer 1

ANSWER

(1)

a)

1. Dr. Refining work in processs A/c $343,400

      Cr. Material                                   A/c $ 343,400

2. Dr. Refining work in processs $120,200

         Cr. Labour                                  $120,200

3. Dr.Refining work in processs $ 79,000

           Cr. FOH control account           $79,000

b)

Dr. Stiffing work in processs A/c $538,100

       Cr.Refining work in processs A/c $538,100

*( 19,200+343,400+120,200+79,000) - 23,700= $538,100

(2)

Determine number of equivalent unit :

	Whole unit	Direct Materials Equivalent Units	Conversion Equivalent Units
Inventory in process, beginning	1000	1000	1000
Started and completed	19800	19800	19800
Transferred to Packing Department	20800	20800	20800
Inventory in process, ending	1120	1120	1120*30% = 336
Total	21920	21920	21136

(3)

a)

the number of whole units to be accounted for and to be assigned costs for the period

= units completed and transferred to the Packing Department + Ending WIP

= 32,800+ 1,400

= 34,200 units.

b)

Details	Units to be accounted for	% of completion	Equivalent units
Transferred out	32,800	100%	32,800
Ending WIP	1,400	30%	420
Equivalent Units			33,220

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