Question

In: Statistics and Probability

Work-in Process account.

Journal entries (continuation of 11-16). Refer to requirement 2 of Exercise 17-16. Prepare summary journal entries for the use of direct materials and incurrence of conversion costs. Also prepare a journal entry to transfer out the cost of goods completed. Show the postings to the Work-in Process account.

Solutions

Expert Solution

Journal entries (continuation of 17-16).

 

1.      

Work in Process––Assembly                                                       750,000

Accounts Payable                                                                                             750,000

To record $750,000 of direct materials

purchased and used in production during 

February 2009

2.      

Work in Process––Assembly                                                       798,000

Various accounts                                                                                               798,000

To record $798,000 of conversion costs

for February 2009; examples include energy, 

manufacturing supplies, all manufacturing

labor, and plant depreciation

3.      

Work in Process––Testing                                                        1,431,000

Work in Process––Assembly                                                                         1,431,000

To record 9,000 units completed and

transferred from Assembly to Testing

during February 2009 at

$159 × 9,000 units = $1,431,000

 

Postings to the Work in Process––Assembly account follow.

Work in Process––Assembly                                                       750,000

Accounts Payable                                                                                             750,000

Raffay answered 2 years ago
Next > < Previous

Related Solutions

The ledger of American Company has the following work in process account. Work in Process—Painting 5/1...
The ledger of American Company has the following work in process account. Work in Process—Painting 5/1 Balance 3,690 5/31 Transferred out ? 5/31 Materials 6,840 5/31 Labor 4,230 5/31 Overhead 1,280 5/31 Balance ? Production records show that there were 480 units in the beginning inventory, 30% complete, 1,760 units started, and 1,410 units transferred out. The beginning work in process had materials cost of $2,840 and conversion costs of $850. The units in ending inventory were 40% complete. Materials...
The ledger of American Company has the following work in process account. Work in Process—Painting 5/1...
The ledger of American Company has the following work in process account. Work in Process—Painting 5/1 Balance 3,590 5/31 Transferred out ? 5/31 Materials 5,160 5/31 Labor 2,530 5/31 Overhead 1,380 5/31 Balance ? Production records show that there were 400 units in the beginning inventory, 30% complete, 1,600 units started, and 1,700 units transferred out. The beginning work in process had materials cost of $2,040 and conversion costs of $1,550. The units in ending inventory were 40% complete. Materials...
he ledger of Hasgrove Company has the following work in process account. Work in Process—Painting 3/1...
he ledger of Hasgrove Company has the following work in process account. Work in Process—Painting 3/1 Balance 3,770 3/31 Transferred out ? 3/31 Materials 6,600 3/31 Labor 2,800 3/31 Overhead 872 3/31 Balance ? Production records show that there were 800 units in the beginning inventory, 30% complete, 1,100 units started, and 1,400 units transferred out. The units in ending inventory were 40% complete. Materials are entered at the beginning of the painting process. Hasgrove uses the FIFO method to...
he ledger of Platt Company has the following work in process account: Work in Process—Painting 3/1...
he ledger of Platt Company has the following work in process account: Work in Process—Painting 3/1 Balance $3,010 3/31 Transferred out $? 3/31 Materials 7,040 3/31 Labour 2,200 3/31 Overhead 1,180 3/31 Balance ? Production records show that there were 800 units in the beginning inventory, 30% complete, 1,100 units started, and 1,300 units transferred out. The units in ending inventory were 40% complete. Materials are entered at the beginning of the painting process. Platt uses the FIFO method to...
Exercise 16-3 The ledger of American Company has the following work in process account. Work in...
Exercise 16-3 The ledger of American Company has the following work in process account. Work in Process—Painting 5/1         Balance                3,890     5/31      Transferred out ? 5/31       Materials             5,290                                     5/31       Labor     4,130                                     5/31       Overhead            1,380                                     5/31       Balance                ?                                              Production records show that there were 440 units in the beginning inventory, 30% complete, 1,700 units started, and 1,410 units transferred out. The beginning work in process had...
Exercise 16-3 The ledger of American Company has the following work in process account. Work in...
Exercise 16-3 The ledger of American Company has the following work in process account. Work in Process—Painting 5/1 Balance 3,890 5/31 Transferred out ? 5/31 Materials 6,940 5/31 Labor 3,530 5/31 Overhead 1,880 5/31 Balance ? Production records show that there were 580 units in the beginning inventory, 30% complete, 1,780 units started, and 1,570 units transferred out. The beginning work in process had materials cost of $2,640 and conversion costs of $1,250. The units in ending inventory were 40%...
A company operates a process costing system. The work-in-process account for last month is given below:...
A company operates a process costing system. The work-in-process account for last month is given below: Work in Process Account Opening work in process 0 Closing work in process 144,000 Manufacturing costs incurred during the month 624,000 Cost of goods manufactured 480,000 The company finished producing 12,000 units and 4,000 incomplete units were still in process at the end of the month. The closing work in progress was complete to the same degree for materials and conversion costs. What was...
Exercise 3-3 (Video) The ledger of American Company has the following work in process account. Work...
Exercise 3-3 (Video) The ledger of American Company has the following work in process account. Work in Process—Painting 5/1 Balance 3,790 5/31 Transferred out ? 5/31 Materials 7,030 5/31 Labor 5,648 5/31 Overhead 1,580 5/31 Balance ? Production records show that there were 500 units in the beginning inventory, 30% complete, 1,600 units started, and 1,500 units transferred out. The beginning work in process had materials cost of $2,840 and conversion costs of $950. The units in ending inventory were...
What is the relationship between the job cost sheet and the work in process inventory account?...
What is the relationship between the job cost sheet and the work in process inventory account? There are three inventory control accounts in a job order system. Identify the control accounts and their subsidiary ledgers. Many of you want to operate a small business... In order to operate your business, you will need a good understanding of managerial accounting, as well as many other skills. Much information is available to assist people who are interested in starting a new business....
The inventory of Work in Process—Rolling on September 1 and debits to the account during September...
The inventory of Work in Process—Rolling on September 1 and debits to the account during September were as follows: Bal., 800 units, 20% completed: Direct materials (800 x $7.2) $ 5,760 Conversion (800 x 20% x $3) 480 $ 6,240 From Smelting Department, 17,920 units $130,816 Direct labor 36,189 Factory overhead 19,487 During September, 800 units in process on September 1 were completed, and of the 17,920 units entering the department, all were completed except 1,500 units that were 60%...
ADVERTISEMENT
Subjects
ADVERTISEMENT
Latest Questions
ADVERTISEMENT