Complete the remaining part Cost of Production and Journal Entries Lighthouse Pa

Question

Complete the remaining part

Cost of Production and Journal Entries Lighthouse Paper Company manufactures newsprint. The product is manufactured in two departments, Papermaking and Converting. Pulp is first placed into a vessel at the beginning of papermaking production. The following information concerns production in the Papermaking Department for March Account Work in Process-Papermaking Department Account No. Date Item Balance Debit Credit Debit Credit Mar. 1 Bal., 5,300 units, 80% completed 31 Direct materials, 28,300 units 50,940 31 Direct labor 31 Factory overhead 31 Goods transferred, 31,600 units 31 Bal., 2,000 units, 90% completed 3,816 4,756 69,686 78,084 14,930 8,398 al. Prepare the March journal entry for the Papermaking Department for the materials charged to production. 0,940 Work in Process-Pa kin 50,940 Feedbadk Check My Work al. Remember there are three different types of inventory; materials, work in process, and finished goods. a2. Prepare the March journal entry for the Papermaking Department for the conversion costs charged to production. If an amount box does not require an entry, leave it blank. Work in 23,328 able 14,930 Overhead-P 8,398

Explanation / Answer

a3. Cost per equivalent units: Equivalent units Particulars Units Material Conversion Beginning balance (a) 5300 0 1060 (80% complete) (5300*0.2) Started and completed (b) (Balancing figure) 26300 26300 26300 (31600-5300) c) Goods transferred (a)+(b) 31600 26300 27360 Ending balance (d) 2000 2000 1800 (2000*0.90) Total (e)=©+(d) 33600 28300 29160 Cost per equivalent units: Materials 50940/28300=$1.8 per unit Conversion 23328/29160=$0.80 per unit Cost of 33600 converted units: Beginning balance 3816 Cost to complete in March (4240*0.8) 3392 Units started and completed [26300*(1.8+0.8)] 68380 Total 75588 Entry : Debit Credit Work in Process-Converting Department 75588 Work in Process-Papermaking Department 75588 These units are 100% complete and ready to be sold b. Ending balance Material 2000*1.8 3600 Conversion 1800*0.8 1440 Total 5040 2000 units are still in process Material 100% complete Conversion 90% complete Equivalent units: Material 2000 Conversion 1800 Total 3800

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