Kelley paint company uses the weighted average method to aacount for costs of production. Kelley manufactures base paint in two separate departments- Mixing and Packaging. The following information for the Mixing Department for the month of March. 1) A total of 40,000 units were in beginning WIP Inventory. All were completed and transferred out during March. 2) Atotal of 70,000 units were started during March. Of THE 70,000 units STARTED, 20,000 units were completed and transferred out to the packaging department (100% complete with respect to direct materials, direct labor, and overhead), and 50,000 units were partially completed and remained in ending WIP Inventory on March 31 (90% complete for direct materials, 70% complete for direct labor, and 30% complete for overhead, which is applied on machine hours.) 3) Costs in beginning WIP Inventory totaled $229,000 ($98,000 in direct materials + $41,000 in direct labor + $90,000 in overhead). 4) Cost incurred during March totaled $165,000 (=70,000 in direct materials+ 35,000 in direct labor + 60,000 in overhead). Required 1) Use the four key steps to assign costs to units completed and transferred out and to units in ending WIP inventory for the Mixing Departmen

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Description: Kelley paint company uses the weighted average method to aacount for costs of production. Kelley manufactures base paint in two separate departments- Mixing and Packaging. The following information for the Mixing Department for the month

Principles of Cost Accounting

17th Edition

ISBN:9781305087408

Author:Edward J. Vanderbeck, Maria R. Mitchell

Publisher:Edward J. Vanderbeck, Maria R. Mitchell

Chapter6: Process Cost Accounting—additional Procedures; Accounting For Joint Products And By-products

Section: Chapter Questions

Problem 2E: Precision Inc. manufactures wristwatches on an assembly line. The work in process inventory as of...

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Kelley paint company uses the weighted average method to aacount for costs of production.

Kelley manufactures base paint in two separate departments- Mixing and Packaging.

The following information for the Mixing Department for the month of March.

1) A total of 40,000 units were in beginning WIP Inventory. All were completed and transferred out during March.

2) Atotal of 70,000 units were started during March. Of THE 70,000 units STARTED, 20,000 units were completed and transferred out

to the packaging department (100% complete with respect to direct materials, direct labor, and overhead), and 50,000 units were partially completed

and remained in ending WIP Inventory on March 31 (90% complete for direct materials, 70% complete for direct labor, and 30% complete for overhead,

which is applied on machine hours.)

3) Costs in beginning WIP Inventory totaled $229,000 ($98,000 in direct materials + $41,000 in direct labor + $90,000 in overhead).

4) Cost incurred during March totaled $165,000 (=70,000 in direct materials+ 35,000 in direct labor + 60,000 in overhead).

*Required*

1) Use the four key steps to assign costs to units completed and transferred out and to units in ending WIP inventory for the Mixing Department.

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