Question

Christine Carpet manufactures broadloom carpet in seven processes: spinning, dyeing, plying, spooling, tufting, latexing and shearing. In the Dyeing Department, direct materials (dye) are added at the beginning of the process. Conversion costs are incurred evenly throughout the process. Information for November 2016 follows: UNITS Beginning Work-in-Process Inventory rolls 50 Transferred in from Spinning Department during November 585 Completed during November 500 Ending Work-in-Process (80% complete for conversion work) 135 COSTS Beginning Work-in-Process Inventory (transferred in costs, $4,500; materials cost, $1,500; conversion costs, $5,000) $11,000 Transferred in from Spinning Department 21,535 Materials cost added during November 11,200 Conversion costs added during November (manufacturing wages, $8,350; manufacturing overhead allocated, $43,194) 51,544

1.	Prepare the November production cost report for Christine​'s Dyeing Department. ​(Christine uses​weighted-average process​ costing.)
2.	Journalize all transactions affecting Christine​'s Dyeing Department during November​, including the entries that have already been posted.

Answer 1

1.

CHRISTINE CARPET
Production Cost Report―DYEING DEPARTMENT
Month Ended November 30, 2016
		Equivalent Units
UNITS	Whole	Transferred	Direct	Conversion
	Units	In	Materials	Costs
Units to account for:
Beginning work-in-process	50
Transferred in	585
Total units to account for	635
Units accounted for:
Completed and transferred out	500	500	500	500
Ending work-in-process	135	135	135	108
Total units accounted for	635	635	635	608
COSTS		Transferred	Direct	Conversion	Total
		In	Materials	Costs	Costs
Costs to account for:
Beginning work-in-process		$4,500	$1,500	$5,000	$11,000
Costs added during period		21,535	11,200	51,544	$84,279
Total costs to account for		26,035	12,700	56,544	95,279
Divided by: Total EUP		÷ 635	÷ 635	÷ 608
Cost per equivalent unit		$41.00	$20.00	$93.00	$154.00
Costs accounted for:
Completed and transferred out		$20,500.00	$10,000.00	$46,500.00	$77,000
Ending work-in-process		$5,535.00	$2,700.00	$10,044.00	$18,279
Total costs accounted for		$26,035	$12,700	$56,544	$95,279

2. Journal Entries

Date	Accounts and Explanation	Debit	Credit
Nov. 30	Work-in-Process Inventory―Dyeing	21,535
	Work-in-Process―Spinning		21,535
	Transfer costs assigned to units transferred.
	Work-in-Process Inventory―Dyeing	11,200
	Raw Materials Inventory		11,200
	Materials used, direct materials assigned to WIP.
	Work-in-Process Inventory―Dyeing	8,350
	Wages Payable		8,350
	Labor incurred, direct labor assigned to WIP.
	Work-in-Process Inventory―Dyeing	43,194
	Manufacturing Overhead		43,194
	Overhead allocated to WIP.
	Work-in-Process Inventory―Plying	77,000
	Work-in-Process Inventory―Dyeing		77,000
	Transfer costs assigned to units transferred.