Question

Use the following information for the Quick Study below. (The following information applies to the questions displayed below.]

Answer 1

Answer:

The Carlberg Company

Journal Entry:

Debit Work in Process (Painting Department) $36,000

Credit Work in Process (Assembly Department) $36,000

To record the transfer of 10,000 units from the assembly department to the painting department.

Explanation:

a) Data and Calculations:

Units started during November = 12,500

Assembly Department

                                              Units   Percent of Direct      Percent of

                                                          Materials Added    Conversion

Beginning work in process  3,000           70%                     30%

Units started during Nov.   12,500        

Units transferred out          10,000         100%                    100%

Ending work in process       5,500          80%                      30%

Cost of beginning work in process =    $2,130                   $940     $3,070

Costs added during the month:         $ 20,910            $ 22,360  $43,270

Total costs of production                    $23,040            $23,300   $46,340

Equivalent units of production:

Units transferred out          10,000         10,000                   10,000

Ending work in process       5,500          4,400                     1,650

Total equivalent units                             14,400                    11,650

Cost per equivalent unit:

Total costs of production                    $23,040                $23,300

Total equivalent units                             14,400                    11,650

Cost per equivalent unit                         $1.60                     $2.00

Cost assigned to:                         Materials           Conversion      Total

Units transferred out                   $16,000            $20,000        $36,000

                                              ($1.60*10,000)       ($2*10,000)

Ending Work in process                 7,040                  3,300           10,340

                                               ($1.60*4,400)         ($2*1,650)

Total costs allocated                  $23,040             $23,300       $46,340