In: Accounting
. |
Direct materials used in the Packaging Department . . . . . . . . . . . . . . . . . . . |
$38,000 |
2. |
Costs assigned to units completed and transferred out of Mixing . . . . . . . . . |
231,000 |
3. |
Direct labour incurred in the Mixing Department . . . . . . . . . . . . . . . . . . . . . . |
11,000 |
4. |
Beginning balance: Work in Process Inventory—Baking . . . . . . . . . . . . . . . |
16,000 |
5. |
Manufactured overhead allocated to the Baking Department . . . . . . . . . . . . |
83,000 |
6. |
Beginning balance: Finished Goods Inventory . . . . . . . . . . . . . . . . . . . . . . . . |
6,000 |
7. |
Costs assigned to units completed and transferred out of Baking . . . . . . . . |
303,000 |
8. |
Beginning balance: Work in Process Inventory—Mixing . . . . . . . . . . . . . . . . |
17,000 |
9. |
Direct labour incurred in the Packaging Department . . . . . . . . . . . . . . . . . . . |
10,500 |
10. |
Manufacturing overhead allocated to the Mixing Department . . . . . . . . . . . . |
66,000 |
11. |
Direct materials used in the Mixing Department . . . . . . . . . . . . . . . . . . . . . . |
153,000 |
12. |
Beginning balance: Raw Materials Inventory . . . . . . . . . . . . . . . . . . . . . . . . . |
32,000 |
13. |
Costs assigned to units completed and transferred out of Packaging . . . . . |
385,000 |
14. |
Beginning balance: Work in Process Inventory—Packaging . . . . . . . . . . . . |
11,500 |
15. |
Purchases of Raw Materials . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . |
173,000 |
16. |
Direct labour incurred in the Baking Department . . . . . . . . . . . . . . . . . . . . . . |
6,500 |
17. |
Manufacturing overhead allocated to the Packaging Department . . . . . . . . |
49,000 |
18. |
Cost of goods sold . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . |
386,00 |
Grandma's Bakery mass-produces bread using three sequential processing departments: Mixing, Baking, and Packaging. The following transactions occurred during August:
Requirements
1. |
Post each of these transactions to the company's inventory T-accounts. |
2. |
Determine the balance at month-end in each of the inventory accounts. |
3. |
Assume 3,300,000 loaves of bread were completed and transferred out of the Packaging Department during the month. What was the cost per unit of making each loaf of bread (from start to finish)? |
Before posting the transactions to the company's T-accounts, begin by determining which accounts are affected by each transaction. The transactions may affect one or two accounts. (Leave any unused cells blank.)
1. |
Direct materials used in the Packaging Department |
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2. |
Costs assigned to units completed and transferred out of Mixing |
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3. |
Direct labour incurred in the Mixing Department |
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4. |
Beginning balance: Work in Process Inventory—Baking |
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5. |
Manufactured overhead allocated to the Baking Department |
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6. |
Beginning balance: Finished Goods Inventory |
7. |
Costs assigned to units completed and transferred out of Baking |
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8. |
Beginning balance: Work in Process Inventory—Mixing |
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9. |
Direct labour incurred in the Packaging Department |
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10. |
Manufacturing overhead allocated to the Mixing Department |
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11. |
Direct materials used in the Mixing Department |
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12. |
Beginning balance: Raw Materials Inventory |
13. |
Costs assigned to units completed and transferred out of Packaging |
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14. |
Beginning balance: Work in Process Inventory—Packaging |
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15. |
Purchases of Raw Materials |
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16. |
Direct labour incurred in the Baking Department |
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17. |
Manufacturing overhead allocated to the Packaging Department |
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18. |
Cost of goods sold |
Requirements 1 and 2. Post the transactions to the T-accounts and determine the ending balance. Begin with the T-account for Raw Materials Inventory. Enter the transactions that affect the T-account and calculate the ending balance. (Leave any unused cells blank.)
Raw Materials Inventory |
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Ending Balance |
Now enter the transactions that affect the T-account for Work in Process
Inventorylong dash—Mixing Department and calculate the ending balance. (Leave any unused cells blank.)
Work in Process Inventory—Mixing Department |
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Ending Balance |
Next, enter the transactions that affect the T-account for Work in Process Inventorylong dash—Baking Department and calculate the ending balance. (Leave any unused cells blank.)
Work in Process Inventory—Baking Department |
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Ending Balance |
Now enter the transactions that affect the T-account for Work in Process Inventorylong dash—Packaging Department and calculate the ending balance. (Leave any unused cells blank.)
Work in Process Inventory—Packaging Department |
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Ending Balance |
Finally, enter the transactions that affect the T-account for Finished Goods Inventory and calculate the ending balance. (Leave any unused cells blank.)
Finished Goods Inventory |
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Ending Balance |
Requirement 3. Assume 3,300,000 loaves of bread were completed and transferred out of the Packaging Department during the month. What was the cost per unit of making each loaf of bread (from start to finish)?
Select the formula labels and then compute the cost per unit of making each loaf of bread (from start to finish). (Round your answer to the nearest cent.)
Cost |
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per unit |
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