Question

The Mixing Department combines the direct materials of paraffin wax and pigments. The heated mixture is pumped to the Molding? Department, where it is poured into molds. After the molds? cool, the crayons are removed from the molds and are transferred to the Packaging? Department, where paper wrappers are added and the crayons are boxed.

In the Mixing? Department, the direct materials are added at the beginning of the process and the conversion costs are incurred evenly throughout the process. Work in process of the Mixing Department on March ?1, 2018?, consisted of 200 batches of crayons that were 30% of the way through the production process. The beginning balance in? Work-in-Process Inventorylong dash—Mixing was $32,900?, which consisted of $13,000 in direct materials costs and $19,900 in conversion costs. During March?, 4,800 batches were started in production. The Mixing Department transferred 4,400 batches to the Molding Department in March?, and 600 were still in process on March 31. This ending inventory was 60% of the way through the mixing process. Colorway uses FIFO process costing.

Work-in-Process Inventory—Mixing

Balance, Mar. 1

32,900

Direct materials

28,800

Direct labor

29,550

Manufacturing overhead

26,850

Requirement 1. Prepare a production cost report for the Mixing Department for

MarchMarch.

Round equivalent unit of production costs to four decimal places. Round all other costs to the nearest whole dollar. ?(Complete all answer boxes. Enter a? "0" for any zero balances. Round cost per unit amounts to four decimal places. Abbreviations? used: EUP? = equivalent units of? production; WIP? = work-in-process.)

Colorway
Production Cost Report - Mixing Department
Month Ended March 31
		Equivalent Units
	Physical	Direct	Conversion
UNITS	Units	Materials	Costs
Units to account for:
Total units to account for
Units accounted for:
Transferred to Molding Department
Total units accounted for

		Direct	Conversion	Total	Cost
COSTS		Materials	Costs	Costs	per Unit
Costs to account for:
Total costs to account for
Cost per equivalent unit

Costs accounted for:
Total costs for beginning WIP
Transferred to Mixing Department
Total costs accounted for

Requirement 2. Journalize all transactions affecting the Mixing Department during

MarchMarch?,

including the entries that have already been posted. Assume labor costs are accrued and not yet paid.

Begin with a summary journal entry to record the assignment of direct materials and direct labor? costs, and the allocation of manufacturing overhead to the Mixing Department. ?(Prepare a single compound journal entry. Record debits? first, then credits. Exclude explanations from journal? entries.)

Date		Accounts	Debit	Credit
Mar.	31

Prepare the journal entry to record the cost of the units? (crayons) completed and transferred out of the Mixing Department.

Date		Accounts	Debit	Credit
Mar.	31

Answer 1

Answer 1								Answer 2
Colorway								Journal entries
Production Cost Report - Mixing Department								Date	Account Title	Debit	Credit
Month Ended March 31								Mar.31	Work in process Inventory - Mixing	$85,200.00
		Equivalent Units							Direct Material Inventory		$28,800.00
UNITS	Physical Units	Direct Material	Conversion Costs						Wages Payable		$29,550.00
Units to account for:									Manufacturing Overheads		$26,850.00
Beginning work in process	200							Mar.31	Work in process Inventory - Molding	$110,180.00
Units started in production	4800								Work in process Inventory - Mixing		$110,180.00
Total units to account for	5000
Units accounted for:
Beginning work in process	200	0	140
Units started in production	4200	4200	4200
Transferred to Molding Department	4400	4200	4340
Ending work in process	600	600	360
Total units accounted for	5000	4800	4700
		Direct	Conversion	Total	Cost
COSTS		Materials	Costs	Costs	per Unit
Costs to account for:
Beginning work in process		$13,000.00	$19,900.00	$32,900.00
Cost added during March		$28,800.00	$56,400.00	$85,200.00
Total costs to account for		$41,800.00	$76,300.00	$118,100.00
Cost added during March		$28,800.00	$56,400.00
/ Equivalent Units		4800	4700
Cost per equivalent unit		$6.00	$12.00
Costs accounted for:
Beginning work in process		$13,000.00	$19,900.00
Cost added during March		$0.00	$1,680.00
Total costs for beginning WIP		$13,000.00	$21,580.00
Cost of units started and completed		$25,200.00	$50,400.00
Transferred to Molding Department		$38,200.00	$71,980.00	$110,180.00
Ending work in process		$3,600.00	$4,320.00	$7,920.00
Total costs accounted for		$41,800.00	$76,300.00	$118,100.00