Learning Objectives 2, 4, 5 P18-42B Preparing a production cost report, second department with beginning WIP; journal entries 1. Cost per EUP DM $19.00 Casey 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 July 2018 follows: UNITS Beginning Work-in-Process Inventory 75 rolls Transferred in from Spinning Department during July 590 rolls Completed during July 550 rolls Ending Work-in-Process Inventory (80% complete for conversion work) 115 rolls COSTS Beginning Work-in-Process Inventory (transferred in costs, $3,700; materials costs, $1,450; conversion costs, $4,950) $ 10,100 Transferred in from Spinning Department 21,570 Materials costs added during July 11,185 Conversion costs added during July (manufacturing wages, $8,050%; manufacturing overhead allocated, $45,422) 53,472 Requirements 1. Prepare a production cost report for Casey's Dyeing Department for July. The company uses the weighted-average method. 2. Journalize all transactions affecting Casey's Dyeing Department during July, includ- ing the entries that have already been posted. Assume labor costs are accrued and not yet paid.
Learning Objectives 2, 4, 5 P18-42B Preparing a production cost report, second department with beginning WIP; journal entries 1. Cost per EUP DM $19.00 Casey 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 July 2018 follows: UNITS Beginning Work-in-Process Inventory 75 rolls Transferred in from Spinning Department during July 590 rolls Completed during July 550 rolls Ending Work-in-Process Inventory (80% complete for conversion work) 115 rolls COSTS Beginning Work-in-Process Inventory (transferred in costs, $3,700; materials costs, $1,450; conversion costs, $4,950) $ 10,100 Transferred in from Spinning Department 21,570 Materials costs added during July 11,185 Conversion costs added during July (manufacturing wages, $8,050%; manufacturing overhead allocated, $45,422) 53,472 Requirements 1. Prepare a production cost report for Casey's Dyeing Department for July. The company uses the weighted-average method. 2. Journalize all transactions affecting Casey's Dyeing Department during July, includ- ing the entries that have already been posted. Assume labor costs are accrued and not yet paid.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Concept explainers
Process Costing
Process costing is a sort of operation costing which is employed to determine the value of a product at each process or stage of producing process, applicable where goods produced from a series of continuous operations or procedure.
Job Costing
Job costing is adhesive costs of each and every job involved in the production processes. It is an accounting measure. It is a method which determines the cost of specific jobs, which are performed according to the consumer’s specifications. Job costing is possible only in businesses where the production is done as per the customer’s requirement. For example, some customers order to manufacture furniture as per their needs.
ABC Costing
Cost Accounting is a form of managerial accounting that helps the company in assessing the total variable cost so as to compute the cost of production. Cost accounting is generally used by the management so as to ensure better decision-making. In comparison to financial accounting, cost accounting has to follow a set standard ad can be used flexibly by the management as per their needs. The types of Cost Accounting include – Lean Accounting, Standard Costing, Marginal Costing and Activity Based Costing.
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Casey carpet manufacturers carpet in seven processes: spinning, dyeing, plying, spooling, tufting, latexing, and shearing.
Transcribed Image Text:Learning Objectives 2, 4, 5
P18-42B Preparing a production cost report, second department with
beginning WIP; journal entries
Casey 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 July 2018 follows:
1. Cost per EUP DM $19.00
UNITS
Beginning Work-in-Process Inventory
75 rolls
Transferred in from Spinning Department during July
590 rolls
Completed during July
550 rolls
Ending Work-in-Process Inventory (80% complete for conversion work)
115 rolls
COSTS
Beginning Work-in-Process Inventory (transferred in costs, $3,700;
materials costs, $1,450; conversion costs, $4,950)
$ 10,100
Transferred in from Spinning Department
21,570
Materials costs added during July
11,185
Conversion costs added during July (manufacturing wages, $8,050;
manufacturing overhead allocated, $45,422)
53,472
Requirements
1. Prepare a production cost report for Casey's Dyeing Department for July. The
company uses the weighted-average method.
2. Journalize all transactions affecting Casey's Dyeing Department during July, includ-
ing the entries that have already been posted. Assume labor costs are accrued and
not yet paid.
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