Question

Please only answer if you're 100% on the answer and can fully complete. Thank you.

USE FIRST-IN, FIRST-OUT COSTING

Sulu Company produces its finished product in two processing departments--Assembly and Packaging.

The following information is available for the month of July:

Assembly Department:

The beginning work-in-process inventory was $5,755 ($4,815 direct materials and $940 conversion costs) and consisted of 350 units that were 10% complete as to conversion costs.

During July, an additional 4,500 units were started into production.

A total of 4,650 units were completed and transferred out to the Packaging Department.

The ending work-in-process inventory consisted of 200 units which were 35% complete as to conversion costs.

The following costs were incurred during July: direct materials $73,800; direct labor $86,300; and overhead $40,195.

Direct materials are added at the beginning of the process in the Assembly Department and conversion costs are incurred evenly throughout the production process.

Packaging Department:

The beginning work in process inventory was $29,631 ($18,606 transferred-in costs and $11,025 conversion costs) and consisted of 450 units that were 70% complete as to conversion costs.

During July, a total of 4,800 units were completed and transferred out to Finished Goods Inventory.

The ending work in process inventory consisted of 300 units which were 60% complete as to conversion costs.

The following costs were incurred during July: direct materials $132,480; direct labor $60,000; and overhead costs $105,141.

Direct materials are added at the end of the process in the Packaging Department and conversion costs are incurred evenly throughout the production process.

REQUIRED:

A. Prepare a production report for July for the Assembly Department.

B. Give the general journal entry to record the transfer of the completed units from the Assembly Department to the Packaging Department for July.

C. Prepare a production report for July for the Packaging Department.

Answer 1

1) Production report - Assembly
	phy units	Material	Conver cost	total
O WIP	350		315
started and completed	4300	4300	4300
Trans to Packaging	4650
C WIP	200	200	70
Equivalent units		4500	4685
Costs incurred		73800	126495
Cost per Equi unit		16.4	27
cost of O WIP		4815	940
addition made		0	8505
Total OWIP cost		4815	9445	14260
Cost of Start & completed		70520	116100	186620
Total cost transferred to Packaging				200880
Cost of C WIP		3280	1890	5170
2) Journal Entry of transfer:
Debit	WIP - Pack Deptt	200880
Credit	WIP - Asse Deptt		200880
3) Production report - Packaging
	phy units	Transf in costs	Conver cost	total
O WIP	450		135
started and completed	4350	4350	4350
Trans to FG	4800
C WIP	300	300	180
Equivalent units		4650	4665
Costs transf in/ incurred		200880	165141
Cost per Equi unit		43.2	35.4
cost of O WIP		18606	11025
addition made		0	4779		135*35.4
Total OWIP cost		18606	15804	34410
Cost of Start & completed		187920	153990	341910
direct mate added at end		132480		132480
Total cost transferred out to FG				508800
Cost of C WIP		12960	6372	19332