In: Accounting
Off RoadOff Road manufactures auto roof racks in a? two-stage process that includes shaping and plating. Steel alloy is the basic raw material of the shaping process. The steel is moulded according to the design specifications of automobile manufacturers? (Ford and General? Motors). The Plating Department then adds an anodized finish. At March? 31, before recording the transfer of cost from the Plating Department to Finished Goods? Inventory, the Off RoadOff Road general ledger included the following? account:
1. Fill in the time line for the Plating Department.
start | complete | complete | |
2. Prepare the March production cost report for the Plating Department. Before we can start the production cost report we must first compute the Plating? Department's equivalent units. ?(For entries with a zero? balance, make sure to enter? "0" in the appropriate? cell.)
Off Road |
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Plating Department |
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Equivalent Unit Computations (Weighted-Average) |
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Flow of |
Equivalent Units |
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Physical |
Transferred- |
Direct |
Conversion |
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Flow of Production |
Units |
in |
Materials |
Costs |
Units accounted for: |
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Total equivalent units |
Now we will begin the production cost report by completing the first half of the report. Compute the cost per equivalent unit. ?(For entries with a zero? balance, make sure to enter? "0" in the appropriate? column.)
Off Road |
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Plating Department |
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Production Cost Report (Weighted-Average) |
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Transferred- |
Direct |
Conversion |
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in |
Materials |
Costs |
Total |
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Cost per equivalent unit |
Complete the March production cost report by assigning the costs to units completed and transferred out and to ending inventory. ?(Enter quantities? first, then the cost per equivalent unit amounts in the same order as calculated in the preceding step. For entries with a zero? balance, make sure to enter? "0" in the appropriate? cell(s). Round your answers to the nearest whole? dollar.)
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Off Road |
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Plating Department |
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Production Cost Report (Weighted-Average Method) |
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Transferred- |
Direct |
Conversion |
Total |
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in |
Materials |
Costs |
Costs |
Assignment of total costs: |
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Total cost accounted for |
Requirement 3. Journalize all transactions affecting the Plating Department during? March, including the entries that have already been posted.
Record the journal entry for the cost of the units transferred in from the Shaping Department. ?(Record debits? first, then credits. Explanations are not? required.)
Journal Entry |
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Date |
Accounts |
Debit |
Credit |
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Record the direct? materials, direct? labour, and manufacturing overhead assigned to the Plating Department.
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Journal Entry |
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Date |
Accounts |
Debit |
Credit |
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Prepare the journal entry to record the cost of units completed and transferred out.
Journal Entry |
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Date |
Accounts |
Debit |
Credit |
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Work in Process Inventory -Plating | |
March 1 balance | 26,370 |
Transferred-in from Shaping | 28,800 |
Direct materials | 28,600 |
Direct labour | 20,867 |
Manufacturing overhead | 36,763 |
Date | Account's tittle | Debit $ | Credit $ |
Work in process- Plating | 28,800 | ||
Work in process- Shaping | 28,800 | ||
( Transfer from shaping department ) | |||
Direct Materials | 28,600 | ||
Cash | 28,600 | ||
( Material cost incurred) | |||
Work in process- Plating | 28,600 | ||
Direct Materials | 28,600 | ||
( Direct materials are issued for production) | |||
Direct Labor | 20,867 | ||
Cash | 20,867 | ||
( Labor cost incurred) | |||
Work in process- Plating | 20,867 | ||
Direct Labor | 20,867 | ||
( Direct labor cost charged to production ) | |||
Manufacturing overhead | 36,763 | ||
Cash | 36,763 | ||
( Manufacturing overhead incurred ) | |||
Work in process- Plating | 36,763 | ||
Manufacturing overhead | 36,763 | ||
( Manufacturing overhead costs charged to production ) |