please help me answer question 4 only. Thanks Process Job Costing and Equivalent

Question

please help me answer question 4 only. Thanks

Process Job Costing and Equivalent Units of Production Bay Manufacturing produces paint. The company has two processes: mixing and packaging. The ingredients for the paint are mixed in large batches and then transferred to the packaging department, where one-gallon cans are filled, capped, labeled, and boxed. There was no work in process on February 1. The materials are all brought to the packaging job up front and charged to the job. Nothing is transferred to finished goods until the entire job is complete. The materials costs include the packaging, material, and the cost transferred from the mixing department. On February 2, 15,000 gallons (job 2-1) were transferred into the packaging department from the mixing department and completed on February 19. The costs incurred to complete job 2-1 in the packaging department are as follows:    Materials                        56,250    Labor                        11,250    Overhead (applied based on direct labor hours)                          7,500 On February 20, another 20,000 gallons (job 2-2) were transferred into the packaging department. Job 2-2 was 50% complete as to labor at the end of the month. The costs incurred (unit cost unchanged from job 2-1) to complete job 2-2 in the packaging department are as follows:    Materials                        75,000    Labor                        15,000    Overhead (applied based on direct labor hours)                        10,000 INSTRUCTIONS: 1. Compute the physical units of production. 2. Compute the cost per unit to complete packaging for labor, materials, overhead, and total. 3. Compute equivalent units and cost of work in process as of the end of February. 4. Record journal entries for:      a. the movement of materials from materials inventory to each job      b. the allocation of payroll to each job      c. the application of overhead to each job      d. the movement of work in process to finished goods

Explanation / Answer

Equivalent Units Flow Of Units Physical Units Direct Material Direct Labour Overhead Units accounnted for: Completed and transferred out (b) 15000 15000 15000 15000 Ending work in progress inventory© 20000 20000 10000 10000 Ans 1 Total units to be accounted for (f) 35000 35000 25000 25000 Flow of Cost Cost in the begnning work in progress inventory 0 0 0 0 Cost added in current period of both the jobs 2-1,2-2 added to get the figure 175000 131250 26250 17500 Total Cost to be accounted for (e) 175000 131250 26250 17500 Ans 3 Cost per equivalent unit (a)-   (e/f) 3.75 1.05 0.70 Cost accounted for Ans 2 ost assigned to units transferred out (a*b) 72000.00 56250.00 15750.00 10500.00 Ans 3Cost in ending work in progress inventory (a*c) 85500.00 75000.00 10500.00 7000.00 Total Cost accounted for 157500.00 131250.00 26250.00 17500.00 Dr Cr Amount $ a,b,c Work In Process 157500.00 A Material Inventory 131250.00 B Labor Cost 26250.00 C Manufacturing Overhead 17500.00 Finished Goods 72000.00 D Work in Process 72000.00

Related Questions

Navigate

• Browse (All)
• Browse P
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.