Problem:
Drawing a timeline, computing equivalent units, and assigning cost to completed units and ending work in process; no beginning work in process inventory or cost transferred in
Crafty Paint prepares and packages paint products. Crafty Paint has two departments: (1) Blending and (2) Packaging. Direct materials are added at the beginning of the blending process (dyes) and at the end of the packaging process (cans). Conversion costs are added evenly throughout each process. Data from the month of May for the Blending Department are as follows:
|
Gallons:
|
|
|
Beginning work in process inventory
|
0
|
|
Started production
|
9,000 allons
|
|
Completed and transferred out to Packaging in May
|
4,000 gallons
|
|
Ending work in process inventory (30% of the way through
|
|
|
blending process)
|
5,000 gallons
|
|
Costs:
|
|
|
Beginning work in process inventory
|
$ 0
|
|
Costs added during May:
|
|
|
Direct materials
|
6,750
|
|
Direct labor
|
1,300
|
|
Manufacturing overhead
|
2,000
|
|
Total costs added during May
|
$10,050
|
Requirements
1.Fill in the timeline for the Blending Department.
2.Use the timeline to help you compute the Blending Department's equivalent units for direct materials and for conversion costs.
3.Compute the total costs of the units (gallons)
a.completed and transferred out to the Packaging Department.
b.in the Blending Department ending Work in process inventory.