Question

This problem has already been half answered, but can someone finish it and check the answers. I'll include the link. Finished ASAP please!

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USE WEIGHTED AVERAGE COSTING:

Wanda Company produces its finished product in two processing departments--Mixing and Finishing.

The following information is available for the month of March:

Mixing Department:

The beginning work-in-process inventory was $17,130 ($14,880 direct materials and $2,250 conversion costs) and consisted of 1,200 units.

During March, an additional 10,600 units were started into production. A total of 10,900 units were completed and transferred out to the Finishing Department.

The ending work-in-process inventory consisted of 900 units which were 80% complete as to conversion costs.

The following costs were incurred during March: direct materials $132,620; direct labor $140,000; and overhead $101,770.

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

Finishing Department:

The beginning work in process inventory was $57,210 ($44,250 transferred-in costs and $12,960 conversion costs) and consisted of 600 units.

During March, a total of 11,000 units were completed and transferred out to Finished Goods Inventory.

The ending work in process inventory consisted of 500 units which were 40% complete as to conversion costs.

The following costs were incurred during March: direct materials $143,000; direct labor $250,000; and overhead costs $149,200.

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

REQUIRED:

A. Prepare a production report for March for the Mixing Department.

B. Give the general journal entry to record the transfer of the completed units from the Mixing Department to the Finishing Department for March.

C. Prepare a production report for March for the Finishing Department.

D. Give the general journal entry to record the completion of the units in the Finishing Department for March.

E. Draw the Work-in-Process Inventory T-accounts for the Mixing Department and the Finishing Department and enter the appropriate cost flow account data.

F. Why is computing cost of goods sold in process costing problematic?

Answer 1

A.
	Production Report for Mixing Department					e.u- Equivalent units
	Inputs (units)	Output (units)	Materials		Conversion Costs
			%	e.u	%	e.u
	Opg WIP    1200	Trf to F.Dept 10900	100	10900	100	10900
	(+) Inputs 10600	Clg WIP            900	100	900	80	720
				11800		11620
	Cost per e.u
	Particulars	Opening WIP	Current Cost	Total Cost	e.u	Cost per e.u
	Materials	14880	132620	147500	11800	12.5
	Conversion Cost	2250	241770	244020	11620	21
	Cost Apportionment
	Items	Materials @ $12.50	Conv. Cost @$21	Total
	Trnf to F.Dept	136250	228900	365150
		(10900*12.50)	(10900*21)
	Clg WIP	11250	15120	26370
		(900*12.50)	(720*21)
			Total Costs	391520
B.	Journal on transfer to Finishing Department
	Finishing Depatment Control A/C		Dr	365150
	To Mixing Department Control A/C				365150
C.	Production Report for Finishing Department					e.u- Equivalent units
	Inputs (units)	Output (units)	Materials		Conversion Costs
			%	e.u	%	e.u
	Opg WIP        600	Trf to FG      11000	100	11000	100	11000
	(+) Frm Mix 10900	Clg WIP            500	100	500	40	200
				11500		11200
	Cost per e.u
	Particulars	Opening WIP	Current Cost	Total Cost	e.u	Cost per e.u
	Transferred in Material	44250	365150	409400	11500	35.6
	Fresh Material in F.Dept		143000	143000	11500	12.43478261
	Conversion Cost	12960	399200	412160	11200	36.8
	Cost Apportionment
	Items	Trnf in Materials @ $35.6	Fresh Materials @$12.43	Conv. Cost @$36.80	Total
	Trnf to FG Control	391600	136730	404800	933130
		(11000*35.60)	(11000*12.43)	(11000*36.80)
	Clg WIP	17800	6215	7360	31375
		(500*35.60)	(500*12.43)	(200*36.80)
				Total Costs	964505	(diff. is due to rounding off of Fresh material rate)
D.	Journal on transfer to Finished Goods Control
	Finished Goods Control A/C		Dr	933130
	To Finishing Department Control A/C				933130
E.			Mixing Department A/C
	Dr					Cr
	Particulars	Units	$	Particulars	Units	$
	To Opg Wip	1200	17130	By F.Dept Control	10900	365150
	To Direct Materials	10600	132620	By Clg WIP	900	26370
	To Labour		140000
	To OH		101770
		Total	391520		Total	391520
			Finishing Department A/C
	Dr					Cr
	Particulars	Units	$	Particulars	Units	$
	To Opg Wip	600	57210	By FG Control	11000	933130
	To Mix Dept	10900	365150
	To Direct Materials		143000	By Clg WIP	500	31375
	To Labour		250000
	To OH		149200
		Total	964560		Total	964505	(diff. is due to rounding off of Fresh material rate)
F.	Problems in Computing Cost of Goods Sold using Process Costing
	1. Process costing is based on historical cost. The available cost information may not be useful for future managerial decision-making.
	2. Unfinished units (work in process) at the end of the period are expressed in equivalent production units. This introduces subjective element in scientific cost determination.
	3. The whole concept of process costing system is based on average costs. Average costs do not always reflect the true costs.
	If there is an error in cost determination in one process, it will affect the cost estimation in subsequent processes as well as the cost of work in process and finished products.