For the Mixing Department, the following journal entries are prepared.
Journal Entries:
1. Debit Work in Process $13,095
Credit Direct materials $5,720
Credit Direct labor $4,125
Credit Manufacturing overhead $3,250
- To record costs of materials, labor, and manufacturing overhead allocated.
2. Debit Transfer out $13,630
Credit Work in Process $13,630
- To record the cost of units completed and transferred out.
Data and Calculations:
Direct Direct Mfg o/h Total
Materials Labor Allocated Costs
Beginning inventory $280 $365 $180 $825
Costs added in March 5,720 4,125 3,250 13,095
Total costs $6,000 $4,490 $3,430 $13,920
Physical Direct Conversion
Units Materials Costs
<u>Units to account for:</u>
Beginning Work in process 550
Started in March 4,650
Total units to account 5,200
Completed & transferred 4,700
Ending work in process 500
<u>Units accounted for:</u>
Ending work in process 500 100 (20%) 100 (20%)
Completed & transferred 4,700 4,700 (100%) 4,700 (100%)
Total equivalent units 4,800 4,800
Direct Conversion Total
Materials Costs Costs
<u>Costs to account for:</u>
Beginning inventory $280 $545 $825
Costs added in March 5,720 7,375 13,095
Total costs $6,000 $7,920 $13,920
Total equivalent units 4,800 4,800
Cost per equivalent unit $1.25 $1.65
($6,000/4,800) ($7,920/4,800)
<u>Costs accounted for:</u>
Completed & transferred $5,875 $7,755 $13,630
(4,700 x $1.25) (4,700 x $1.65)
Ending inventory $125 $165 $290
(100 x $1.25) (100 x $1.65)
Total costs accounted $6,000 $7,920 $13,920
Learn more: brainly.com/question/24246457
