Refer to the Churning Department information for Woodson Dairy in E5-28A.

In E5-28A

Data for the Churning Department for January follows:

Units in beginning Work in Process (WIP) inventory………………………………….100,000 units

Units started during the month (all direct materials, including cream

and salt, are added at the beginning of the churning process)…………………….1,500,000 units

Units in ending Work in Process (WIP) inventory (40% of the way

through the process)………………………………………………………………………………..200,000 units

Cost information is as follows:

WIP-Churning Department balance as of January 1:

Direct material cost included in beginning WIP balance……………………………………$110,000

Conversion cost included in beginning WIP balance…………………………………………….24,000

Beginning balance, WIP, January 1…………………………………………………………………$134,000

Manufacturing costs incurred during January:

Direct materials used…………………………………………………………………………………..$1,730,000

Direct labor………………………………………………………………………………………………………10,000

Manufacturing overhead………………………………………………………………………………….558,000

Total manufacturing costs entered into production during January…………………..$2,298,000

Requirements

1. What journal entry(s) would have been made during the month to record manufacturing costs? (Use Wages Payable as the credit for the direct labor costs.)

2. What journal entry is needed at the end of the month to transfer the cost of the butter out of the Churning Department and into the next department, the Forming Department?

3. Post the journal entries to the Work in Process Inventory-Churning Department T-account.



Source link

Leave a Reply

Your email address will not be published. Required fields are marked *