Assignment:
Computing equivalent units for a second department with beginning work in process inventory; preparing a production cost report and recording transactions on the basis of the report's information; weighted-average method
Carol Carpet manufactures broadloom carpet in seven processes: spinning, dyeing, plying, spooling, tufting, latexing, and shearing. In the Dyeing Department, direct materials (dye) are added at the beginning of the process. Conversion costs are incurred evenly throughout the process. Carol uses weighted-average process costing. Information for July 2012 follows:
|
Units:
|
|
|
|
Beginning work in process inventory
|
65
|
rolls
|
|
Transferred in from Spinning Department during July
|
570
|
rolls
|
|
Completed during July
|
520
|
rolls
|
|
Ending work in process (80% complete as to
|
|
|
|
conversion work)
|
115
|
rolls
|
|
Costs:
|
|
|
|
Beginning work in process (transferred-in cost, $3,900;
|
|
|
|
materials cost, $1,625; conversion costs, $5,555)
|
$ 11,080
|
|
|
Transferred in from Spinning Department during July
|
19,595
|
|
|
Materials cost added during July
|
9,805
|
|
|
Conversion costs added during July (manufacturing
|
|
|
|
wages, $9,450; manufacturing overhead, $43,135)
|
52,585
|
|
Requirements
1. Prepare a timeline for Carol's Dyeing Department.
2. Use the timeline to help you compute the equivalent units, cost per equivalent unit, and total costs to account for in Carol's Dyeing Department for July.
3. Prepare the July production cost report for Carol's Dyeing Department.
4. Journalize all transactions affecting Carol's Dyeing Department during July, including the entries that have already been posted.