Question

Li Company produces large quantities of a standardized product. The following information is available for its production activities for January.

Raw materials				Factory overhead incurred
Beginning inventory	$	23,000		Indirect materials used	$	79,000
Raw materials purchased (on credit)		260,000		Indirect labor used		50,000
Direct materials used		(171,500	)	Other overhead costs		151,840
Indirect materials used		(79,000	)	Total factory overhead incurred	$	280,840
Ending Inventory	$	32,500
				Factory overhead applied
Factory payroll				(140% of direct labor cost)
Direct labor used	$	200,600		Total factory overhead applied	$	280,840
Indirect labor used		50,000
Total payroll cost (paid in cash)	$	250,600

Additional information about units and costs of production activities follows.

Units			Costs
Beginning goods in process inventory	2,500		Beginning goods in process inventory
Started	36,000		Direct materials	$	2,500
Ending goods in process inventory	5,100		Direct labor		3,500
			Factory overhead		4,200
						$	10,200
Status of ending goods in process inventory			Direct materials added				171,500
Materials—Percent complete	60	%	Direct labor added				200,600
Labor and overhead—Percent complete	35	%	Overhead applied (140% of direct labor)				280,840
			Total costs			$	663,140
			Ending goods in process inventory			$	39,408

During January, 18,000 units of finished goods are sold for $180 cash each. Cost information regarding finished goods follows.

Beginning finished goods inventory	$	150,000
Cost transferred in		623,732
Cost of goods sold		(606,390	)
Ending finished goods inventory	$	167,342

1.

value:
35.00 points

Required information

Required:
1(a)	Prepare journal entry dated January 31 to record the purchase of raw materials. (Omit the "$" sign in your response.)

  

Date	General Journal	Debit	Credit
Jan. 31	(Click to select)Finished goods inventoryFactory payrollCashSalesCost of goods soldFactory overheadRaw materials inventoryAccounts payable
	(Click to select)Cost of goods soldFactory overheadCashSalesFactory payrollFinished goods inventoryRaw materials inventoryAccounts payable

  

1(b)	Prepare journal entry dated January 31 to record the direct materials usage. (Omit the "$" sign in your response.)

  

Date	General Journal	Debit	Credit
Jan. 31	(Click to select)Other accountsFinished goods inventoryRaw materials inventoryFactory payrollGoods in process inventoryCashAccounts payableFactory overhead
	(Click to select)Accounts payableCashFinished goods inventoryFactory payrollOther accountsGoods in process inventoryRaw materials inventoryFactory overhead

    

1(c)	Prepare journal entry dated January 31 to record the indirect materials usage. (Omit the "$" sign in your response.)

  

Date	General Journal	Debit	Credit
Jan. 31	(Click to select)Factory payrollCost of goods soldGoods in process inventoryFinished goods inventoryCashRaw materials inventoryFactory overheadAccounts payable
	(Click to select)Raw materials inventoryFactory payrollFactory overheadFinished goods inventoryGoods in process inventoryAccounts payableCashCost of goods sold

  

1(d)	Prepare journal entry dated January 31 to record the factory payroll costs. (Omit the "$" sign in your response.)

  

Date	General Journal	Debit	Credit
Jan. 31	(Click to select)SalesCashOther accountsGoods in process inventoryFactory overheadRaw materials inventoryFactory payrollAccounts payable
	(Click to select)Other accountsAccounts payableRaw materials inventoryCashGoods in process inventorySalesFactory payrollFactory overhead

  

1(e)	Prepare journal entry dated January 31 to record the direct labor costs used in production. (Omit the "$" sign in your response.)

  

Date	General Journal	Debit	Credit
Jan. 31	(Click to select)Goods in process inventorySalesFinished goods inventoryCost of goods soldOther accountsCashFactory overheadFactory payroll
	(Click to select)SalesCost of goods soldFinished goods inventoryOther accountsFactory payrollFactory overheadCashGoods in process inventory

   

1(f)	Prepare journal entry dated January 31 to record the indirect labor costs. (Omit the "$" sign in your response.)

   

Date	General Journal	Debit	Credit
Jan. 31	(Click to select)Cost of goods soldCashFactory overheadFinished goods inventoryGoods in process inventorySalesOther accountsFactory payroll
	(Click to select)Cost of goods soldCashSalesFactory overheadFactory payrollGoods in process inventoryOther accountsFinished goods inventory

    

1(g)	Prepare journal entry dated January 31 to record the other overhead costs—credit Other Accounts. (Omit the "$" sign in your response.)

    

Date	General Journal	Debit	Credit
Jan. 31	(Click to select)Other accountsRevenuesFinished goods inventoryCost of goods soldSalesFactory overheadGoods in process inventoryRaw materials inventory
	(Click to select)Raw materials inventoryGoods in process inventorySalesFinished goods inventoryOther accountsFactory overheadRevenuesCost of goods sold

   

1(h)	Prepare journal entry dated January 31 to record the overhead applied. (Omit the "$" sign in your response.)

  

Date	General Journal	Debit	Credit
Jan. 31	(Click to select)Goods in process inventoryRaw materials inventoryAccounts payableFinished goods inventoryFactory overheadCashSalesCost of goods sold
	(Click to select)Accounts payableSalesFinished goods inventoryRaw materials inventoryCashCost of goods soldGoods in process inventoryFactory overhead

  

1(i)	Prepare journal entry dated January 31 to record the goods transferred to finished goods. (Omit the "$" sign in your response.)

Date	General Journal	Debit	Credit
Jan. 31	(Click to select)Cost of goods soldGoods in process inventoryAccounts payableFinished goods inventorySalesRaw materials inventoryCashFactory overhead
	(Click to select)Goods in process inventoryAccounts payableRaw materials inventoryCashFactory overheadFinished goods inventorySalesCost of goods sold

  

1(j)	Prepare journal entries dated January 31 to record the sale of finished goods. (Omit the "$" sign in your response.)

  

Date	General Journal	Debit	Credit
Jan. 31	(Click to select)Goods in process inventoryCashAccounts receivableAccounts payableFactory overheadFactory payrollRaw materials inventorySales
	(Click to select)Accounts payableFactory payrollSalesFactory overheadAccounts receivableRaw materials inventoryGoods in process inventoryCash
	(Click to select)Accounts payableFactory overheadRaw materials inventoryFactory payrollAccounts receivableFinished goods inventoryGoods in process inventoryCost of goods sold
	(Click to select)Finished goods inventoryAccounts payableAccounts receivableRaw materials inventoryFactory payrollCost of goods soldFactory overheadGoods in process inventory

References

WorksheetLearning Objective: 20-C2 Define and compute equivalent units and explain their use in process cost accounting.Learning Objective: 20-P2 Record the flow of direct labor costs in process cost accounting.

Difficulty: 3 HardLearning Objective: 20-P1 Record the flow of direct materials costs in process cost accounting.Learning Objective: 20-P3 Record the flow of factory overhead costs in process cost accounting.

Check my work

2.

value:
35.00 points

Required information

2.

Prepare a process cost summary report for this company, showing costs charged to production, units cost information, equivalent units of production, cost per EUP, and its cost assignment and reconciliation. (Due to rounding of cost per unit, the total costs accounted for in the cost summary may not equal to sum of all the costs given in the problem. Round your cost per EUP answers to 2 decimal places and consider the same in the other calculations. Round other answers to the nearest dollar amount. Omit the "$" sign in your response.)

  

LI COMPANY
Process Cost Summary
For Month Ended January 31
Costs Charged to Production
Costs of beginning goods in process
(Click to select)Indirect laborDirect laborIndirect materialsDirect materialsFactory overhead	$
(Click to select)Direct materialsIndirect materialsIndirect laborFactory overheadDirect labor
(Click to select)Indirect materialsDirect laborFactory overheadIndirect laborDirect materials
		$
Costs incurred this period
(Click to select)Factory overheadDirect laborIndirect laborDirect materialsIndirect materials	$
(Click to select)Indirect materialsDirect laborDirect materialsFactory overheadIndirect labor
(Click to select)Indirect materialsFactory overheadIndirect laborDirect laborDirect materials
Total costs to account for		$

  

Unit cost information
Units to account for		Units accounted for
(Click to select)Ending goods in processDirect laborCompleted & transferred outBeginning goods in processUnits started this period		(Click to select)Direct laborCompleted & transferred outUnits started this periodEnding goods in processBeginning goods in process
(Click to select)Completed & transferred outUnits started this periodEnding goods in processBeginning goods in processDirect labor		(Click to select)Units started this periodCompleted & transferred outDirect laborEnding goods in processBeginning goods in process
Total units to account for		Total units accounted for

  

Equivalent units of production	Direct Materials	Direct Labor	Factory Overhead
(Click to select)Beginning goods in processIndirect laborEnding goods in processDirect LaborUnits completed & transferred out	EUP	EUP	EUP
(Click to select)Direct laborUnits of ending goods in processDirect materialsUnits of beginning goods in processBeginning goods in process	EUP	EUP	EUP
Equivalent units of production	EUP	EUP	EUP

  

Cost per EUP	Direct Materials			Direct Labor			Factory Overhead
(Click to select)Cost of ending goods in processUnits of ending goods in processUnits of beginning goods in processFactory overheadCost of beginning goods in process	$			$			$
(Click to select)Units of ending goods in processDirect materialsCosts incurred this periodIndirect materialsUnits of begininng goods in process
Total costs	$			$			$
(Click to select)Units of ending goods in processUnits started this periodUnits of begining goods in processEquivalent units of productionUnits ended this period			EUP			EUP			EUP
Cost per EUP	$		Per EUP	$		Per EUP	$		Per EUP

   

Cost assignment and reconciliation
Costs transferred out
(Click to select)Direct laborIndirect laborDirect materialsIndirect materialsFactory overhead	$
(Click to select)Indirect laborFactory overheadDirect laborIndirect materialsDirect materials
(Click to select)Direct materialsIndirect materialsDirect laborFactory overheadIndirect labor
		$
Costs of ending goods in process
(Click to select)Factory overheadIndirect laborDirect laborIndirect materialsDirect materials	$
(Click to select)Indirect materialsDirect materialsIndirect laborFactory overheadDirect labor
(Click to select)Indirect materialsDirect materialsFactory overheadDirect laborIndirect labor
Total costs to account for		$

Answer 1