Pearl’s Closet mass-produces luxurious sleepwear for women. Consider the followi

Question

Pearl’s Closet mass-produces luxurious sleepwear for women. Consider the following data for the flannel nightgown department for the month of January. All direct materials are added at the beginning of production in the department, and conversion costs are incurred evenly throughout production. Inspection occurs when production is 100% completed. Normal spoilage is 6,700 units for the month.

77,400

89,300

14,500

89,300

29,000

913,425

$

2,728,425

Write out the journal entries for this period’s work. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)

Account Titles and Explanation

   Debit

Credit

(To record the cost of raw materials used in production during January.)

(To record the conversion costs incurred in production during January.)

(To record the cost of units transferred to finished goods
during January including the cost of normal spoilage.)

(To record the cost of abnormal spoilage during January.)

Physical Units Beginning WIP (25% complete) 11,900 Started during January

77,400

Total to account for

89,300

Good units completed and transferred out during current period: From beginning work in process 11,900 Started and completed 54,800 Spoiled units 8,100 Ending WIP (75% complete)

14,500

Total accounted for

89,300

Costs Beginning WIP: Direct materials $ 242,000 Conversion costs

29,000

Total beginning WIP 271,000 Costs added during current period: Direct materials 1,544,000 Conversion costs

913,425

Costs to account for

$

2,728,425

Explanation / Answer

Working:

Account Titles and Explanation Debit Credit Work in process inventory 1544000 Raw materials inventory 1544000 (To record the cost of raw materials used in production during January) Work in process inventory 913425 Conversion costs 913425 (To record the conversion costs incurred in production during January) Finished goods inventory ($2067700 + $207700) 2275400 Work in process inventory 2275400 (To record the cost of units transferred to finished goods during January including the cost of normal spoilage) Loss on abnormal spoilage 43400 Work in process inventory 43400 (To record the cost of abnormal spoilage during January)

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