Ch 3 Homework Problem A The following data refer to a production center of Sipp-
ID: 2549212 • Letter: C
Question
Ch 3 Homework Problem A The following data refer to a production center of Sipp-Fizz, a soft drink bottler: Work in process inventory, August 1, 4000 units including costs of: Direct materials $12,000 $.6,120 $8,000 Manufacturing overhead applied Units started in August 12,500 units Costs incurred in August: Direct materials $ 36,000 Direct labor 48,000 Manufacturing overhead applied $ 60,000 The beginning inventory was 100% complete for materials and 50% complete for conversion costs. The ending inventory on August 31 consisted of 6,000 units (100% complete for materials, 70% complete for conversion costs meaning direct labor and overhead). Required: a. Prepare the journal entries to record the costs incurred in August. b. Show the physical flow of units. c. Calculate the equivalent units of production for materials, direct labor, and overhead costs using the weighted average method
Explanation / Answer
Req A: Journal entries: Work in process Inventory Dr. 36000 Raw material Inventory 36000 (for raw material used) Work in process inventory Dr. 48000 Factory wages 48000 (for labouor used) Work in process inventory Dr. 60000 manufacturing Overheads Account 60000 Req b: Physical Flow of units UNITS TO ACCOUNT FOR: UNITS TO BE ACCOUNTED FOR: Beginning Work in Process units 4,000 Units completed 10500 Add: Units Started in Process 12,500 Ending Work in process 6,000 Total Units to account for: 16,500 Total Units accounted for 16,500 Req C: Equivalent Units: Material Cost Labour Overheads Unit Units Units Units completed 10500 10500 10500 Units in Ending WIP material 6000 Conversion cost 4200 4200 Total Equivalent units 16500 14700 14700