Problem 2 (18 Points): Complete Microfilm Products manufactures microfilm camera
ID: 2583557 • Letter: P
Question
Problem 2 (18 Points): Complete Microfilm Products manufactures microfilm cameras. For October, there were no beginning inventories of direct materials and no beginning or ending work in process. Conversion costs is the only indirect manufacturing cost category currently used. Journal entries are recorded when materials are purchased and when units are sold Conversion costs - October $90,400 Direct materials purchased - October $250,400 Units produced - October Units sold - October 75,000 units Selling price $10 each 80,000 units a) Record the journal entry that correctly reflects the purchase of materials in a JIT environment. b) What journal entry would be recorded when units are sold for the month? ) What journal entry would be recorded if the only trigger point is the production of finished units?Explanation / Answer
a) inventory:Raw and in process 250,400 Accounts payable 250,400 b) cost of good sold (90400+250400)/80000*75000= 319500 inventory:Raw and in process (250400/80000)*75000= 234750 conversion costs allocated(90400/80000)*75000 84750 c) Finished goods (90400+250400) 340800 Accounts payable control 250,400 conversion costs allocated 90,400