Carol CarpetCarol Carpet manufactures broadloom carpet in seven processes: spinn
ID: 2601775 • Letter: C
Question
Carol CarpetCarol 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. Information for
JulyJuly
20142014
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 Inventory (80% complete for
conversion work)
115
rolls
COSTS
Beginning Work-in-Process Inventory (transferred in costs,
$3,900; materials cost, $1,625; conversion costs, $5,555)
$11,080
Transferred in from Spinning Department
19,595
Materials cost added during July
9,805
Conversion costs added during July (manufacturing
wages, $9,450; manufacturing overhead, $43,135)
52,585
.
Requirement 1. Prepare the
JulyJuly
production cost report for
CarolCarol's
Dyeing Department.
(CarolCarol
usesweighted-average process costing. Round all cost per unit amounts to the nearest cent and all other amounts to the nearest whole dollar. Abbreviation used: EUP = equivalent units of production.)
Carol Carpet
Production Cost Report - Dyeing Department
Month Ended July 30
Equivalent Units
Whole
Transferred
Direct
Conversion
UNITS
Units
In
Materials
Costs
Units to account for:
Total units to account for
Units accounted for:
Total units accounted for
Transferred
Direct
Conversion
Total
COSTS
In
Materials
Costs
Costs
Costs to account for:
Total costs to account for
Cost per equivalent unit
Costs accounted for:
Total costs accounted for
Requirement 2. Journalize all transactions affecting
CarolCarol's
Dyeing Department during
JulyJuly,
including the entries that have already been posted.
Begin with a summary journal entry to record the assignment of costs transferred from the Spinning Department, direct materials, direct labor, and the allocation of manufacturing overhead to the Dyeing Department. (Prepare a single compound journal entry. Record debits first, then credits. Explanations are not required.)
Date
Accounts
Debit
Credit
Jul.
30
Prepare the journal entry to record the cost of the units completed and transferred out of the Dyeing Department.
Date
Accounts
Debit
Credit
Jul.
30
Carol Carpet
Production Cost Report - Dyeing Department
Month Ended July 30
Equivalent Units
Whole
Transferred
Direct
Conversion
UNITS
Units
In
Materials
Costs
Units to account for:
Total units to account for
Units accounted for:
Total units accounted for
Explanation / Answer
Carol Carpet Carol Carpet $ Beginning work in process 65 rolls Transferred from Spinning 570 rolls Completed during July 520 rolls Ending work in process 115 rolls 80% complete for conversion work Transferred in costs: 3900 Materials cost 1625 Conversion costs 5555 Total 11080 Transferred in from Spinning 19595 Materials cost added during July 9805 Conversion costs added during July: Manufacturing Wages 9450 Manufacturing overhead 43135 Sub total 52585 Requirement 1 Production cost report for Dyeing department July July Equivalent units UNITS Whole Transferred Direct Conversion Units In Materials Costs 635 570 Completed 520 520 Ending work in process 115 115 92 Total units to account for 635 570 115 92 Units accounted for 635 570 115 92 COSTS Transferred Direct Conversion Total Costs to account for: In Materials Costs Costs Beginning Work in process 3900 1625 5555 11080 Transferred in from Spinning 19595 19595 Costs added 9805 52585 62390 Costs accounted for 3900 31025 58140 93065 Cost per equivalent unit 7.5 60 112 179 Requirement 2 Journal Entry Debit Credit Dyeing Department Work in process 11080 Transferred in costs 3900 Material costs 1625 Conversion costs 5555 Work in process 81985 Transferred in costs 19595 Materials cost 9805 Manufacturing wages 9450 Manufacturing overhead 43135 Finished Goods (520 units) 93065 Work in process 93065