Question

Loanstar had 50 units in beginning inventory before starting 1,000 units and completing 850 units. The beginning work in process inventory consisted of $3,000 in materials and $5,000 in conversion costs before $8,550 of materials and $12,670 of conversion costs were added during the month. The ending WIP inventory was 100% complete with regard to materials and 40% complete with regard to conversion costs.

Use the above information to complete a production cost report. Enter all amount as positive values.

Production Cost Report
Work in process completion percent	100%	40%
	Material Units	Conversion Units	Total Units
Completed and transferred out
Ending work in process
Total units to account for
Costs to account for	Materials	Conversion	Total
Beginning work in process	$	$	$
Incurred during the period
Total costs to account for	$	$	$
Equivalent units
Cost per equivalent unit for department	$	$	$

Transferred-out costs	$
End work in process: materials	$
End work in process: conversion	$
End work in process: total	$
Total costs accounted for	$

Prepare the journal entry to record the transfer of inventory from the manufacturing department to the finished goods department. If an amount box does not require an entry, leave it blank.

_____ _____

_____ _____

Answer 1

Use the above information to complete a production cost report. Enter all amount as positive values.

Production Cost Report
Work in process completion percent	100%	40%
	Material Units	Conversion Units	Total Units
Completed and transferred out	850	850
Ending work in process	200	200*40% = 80
Total units to account for	1050	930
Costs to account for	Materials	Conversion	Total
Beginning work in process	$3000	$5000	$8000
Incurred during the period	8550	12670	21220
Total costs to account for	$11550	$17670	$29220
Equivalent units	1050	930
Cost per equivalent unit for department	$11	$19	$30

Transferred-out costs	$25500
End work in process: materials	$2200
End work in process: conversion	$1520
End work in process: total	$3720
Total costs accounted for	$	29220

Prepare the journal entry to record the transfer of inventory from the manufacturing department to the finished goods department. If an amount box does not require an entry, leave it blank.

No	General Journal	Debit	Credit
	Finished goods	29220
	Work in process		29220