Muller Manufacturing Co. Ltd. makes a product by way of three consecutive processes. The following data relates to process 2 for the month of May. (i) During May, 1,500 units valued at $226.50 each were transferred from process 1 to process 2. (ii) Other costs incurred during the month were: Direct material added                 $114,750 Direct manufacturing wages       $124,850 Manufacturing overheads           $158,250 (iii) 200 units were scrapped during the period. Normal losses were estimated to be 81/3% of input during the period. The scrap value of any loss is $78.00 per unit. (iv) Work-in-progress at the end of May was 400 units and had reached the following degree of completion: Transfer from process 1              100% Direct material added                  75% Direct manufacturing wages        40% Production overhead                   20% (v) There were no unfinished goods in process 2 at the beginning of the period.   Required a. State the journal entries necessary to record the assignment of direct materials, direct manufacturing wages and manufacturing overhead applied to Process 2. Also give the journal entries to record the cost of product completed and transferred to Process 3.

Question

Muller Manufacturing Co. Ltd. makes a product by way of three consecutive processes. The following data relates to process 2 for the month of May.

(i) During May, 1,500 units valued at $226.50 each were transferred from process 1 to process 2.

(ii) Other costs incurred during the month were:

Direct material added                 $114,750

Direct manufacturing wages       $124,850

Manufacturing overheads           $158,250

(iii) 200 units were scrapped during the period. Normal losses were estimated to be 81/3% of input during the period. The scrap value of any loss is $78.00 per unit.

(iv) Work-in-progress at the end of May was 400 units and had reached the following degree of completion: Transfer from process 1              100%

Direct material added                  75%

Direct manufacturing wages        40%

Production overhead                   20%

(v) There were no unfinished goods in process 2 at the beginning of the period.

 

Required

a. State the journal entries necessary to record the assignment of direct materials, direct manufacturing wages and manufacturing overhead applied to Process 2. Also give the journal entries to record the cost of product completed and transferred to Process 3.

Expert Answer

Want to see the step-by-step answer?

Check out a sample Q&A here.

Want to see this answer and more?

Experts are waiting 24/7 to provide step-by-step solutions in as fast as 30 minutes!*

*Response times may vary by subject and question complexity. Median response time is 34 minutes for paid subscribers and may be longer for promotional offers.
Tagged in
Business
Accounting

Related Accounting Q&A

Find answers to questions asked by students like you.

Q: Walthman Industries Inc. employs seven salespersons to sell and distribute its product throughout th...

A: 1.

Q: The management of Petro Garcia Inc. was discussing whether certain equipment should be written off a...

A: “Hey, since there are multiple sub-parts posted, we will answer first three sub-parts. If you want a...

Q: For a recent year, Wicker Company-owned restaurants had the following sales and expenses (in million...

A: Contribution margin is calculated by subtracting variable expenses from the sales revenue of a compa...

Q: Name three factors that will affect the classification of a cost as direct or indirect.

A: Cost: Cost refers to the expenses incurred by the business to earn revenue from sales, in other word...

Q: Andrea Kremer purchased a computer for $8,000 on July 1, 2020. She intends to depreciate it over 4 y...

A: Click to see the answer

Q: eBook Show Me How Calculator Print Item The following data were extracted from the income statement ...

A: a. 1.Computation of inventory turnover: Thus, the inventory turnover of current year is 11.20 and f...

Q: key internal and external stakeholders

A: The internal stakeholders of a company are listed as below: Employees, Managers, The board of direc...

Q: Variable and Fixed Costs. Consolidated Motors specializes in producing one specialty vehicle. It is ...

A: Requirement a:

Q: Recording and Reporting a Bad Debt Estimate Using Aging Analysis  E14-13  Chou Company uses th...

A: 1. Record appropriate adjusting entry for bad debt expense for current year as shown below:     Wor...

Q: Problem 9-9The FICA Tax (LO 9.3) Thuy worked as the assistant manager at Burger Crown through August...

A: Compute total income earned by Thuy in the year 2019 as shown below:  

Q: Cost of goods manufactured, income statement, manufacturing company. Consider the following account ...

A: Step 1 The cost of goods manufactured is $812,000. Total manufacturing costs incurred during the ye...

Q: Your audit team is reviewing the third-quarter financial statements of smirks Inc. a publicly traded...

A: In regard to the interim financial reports of Smirks Inc., the public traded companies as per the pr...

Q: Walkin Inc. is considering the write-down of its long-term plant because of a lack of profitability....

A: Fixed assets: Fixed assets can be defined as the long term assets, which have a number of years as u...

Q: Please Help

A: Click to see the answer

Q: The purpose of the ledger is to: Group of answer choices a)record chronologically the day's transac...

A: Ledger: Ledger is the book, where the debit and credit entries recorded in the journal book are tra...

Q: .    In determining the amount of a provision, a company using IFRS should generally measure: a.   u...

A: An economic obligation created and maintained to cover the future liability is termed as provisions....

Q: Lewis Co. produces and sells aviation equipment. On the first day of its fiscal year, Lewis Co. issu...

A: Click to see the answer

Q: Given Principal $14,500, Interest Rate 8%, Time 240 days (use ordinary interest)   Partial payment...

A: The amount of interest expenses refers to the fixed payment made by the borrower. It is charged at a...

Q: Asset turnover Three major segments of the transportation industry are motor carriers such as Atlant...

A: Asset turnover ratio measures number of sales dollars earned for each dollar of assets. 

Q: Identify and briefly describe the three categories of cash flows reported in the statement of cash f...

A: Cash flow statement is the statement which shows inflows and outflows of cash and cash equivalents d...

Q: Describe to Becky the difference between basic and diluted earnings per share.

A: Earnings per share (EPS): It is the profit per outstanding share of a public company. A higher EPS ...

Q: Hi, I'm having trouble with number of days sales in receivables. Can someone help me?

A: Number of days sales in receivables is computed by dividing the average account receivables by total...

Q: Nowell Inc. had the following stock issued and outstanding at January 1, 2018:   150,000 shares of ...

A: In case of cumulative preferred stock, any arrears dividend needs to be added to the preferred divid...

Q: Alladin Company purchased Machine #201 on May 1, 2020. The following information relating to Machine...

A: Step 1: a. 1. Compute the purchase cost of the machinery as follows:

Q: Slaton Corporation traded a used truck for a new truck. The used truck cost $20,000 and has accumula...

A: For sale of used Truck Particulars Debit ($) Credit ($) Bank A/c 3,000   Accumulated Deprecia...

Q: Pretax accounting income for the year ended December 31, 2021, was $54 million for Truffles Company....

A: Click to see the answer

Q: When preparing the statement of cash flows, companies are required to report separately as operating...

A: Statement of cash flows: Statement of cash flow is a financial statement that shows the cash and cas...

Q: Recovery of impairment is recognized under IFRS for all the following except: a. patent held for sal...

A: Goodwill: Goodwill is the good reputation developed by a company over years. This is recorded as an ...

Q: Scholes Shoes Ltd, is a retailer of children's school shoes and they have produced the following Una...

A: As per authoring guidelines the first three sub-parts are answered. Please re-post question specifyi...

Q: The auditor’s report provides the analyst with an independent and professional opinion about the fai...

A: Auditors' report: Auditors' report is a consolidated report which is done by the auditor to report t...

Q: Prince Distribution Inc. has an unfunded postretirement benefit plan. Medical care and life insuranc...

A: Calculate attribution period: Attribution period = Pension age - Present age Attribution period = 55...

Q: Johnson Electronics manufactures a power supply used in a variety of electronic products, including ...

A: Step 1: Compute the total manufacturing time.

Q: If merchandise sold on account is returned to the seller the seller may inform the customer of the d...

A: Concept introduction:   An organization can be manufacturing, servicing of merchandising type. For a...

Q: Ratios Analysis: McCormick McCormick & Company, Inc. is one of the world's leading producers of ...

A: Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the question and s...

Q: CALCULATOR PRINTER VERSION BACK NEXT Problem 3-29 Briggs Herrera, president of Ivanhoe Recreation Pr...

A: Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the question and s...

Q: Indicate whether each of the following assets and liabilities typically should be classified as curr...

A: Current assets - Assets which are convertible into cash within a period of one year. Long-term asset...

Q: The following are summary cash transactions that occurred during the year for Hilliard Healthcare Co...

A: Cash Flow statement: It is a financial statement prepared by the company to report the cash inflows ...

Q: Computing cost of goods purchased and cost of goods sold. The following data are for Marvin Departme...

A: 1.

Q: Question 24 - On the costs of goods manufactured schedule, the item raw materials inventory (ending)...

A: Cost of goods manufactured: It is the total cost that is incurred for manufacturing the products and...

Q: Pacific Airlines Co. awards members of its Frequent Fliers Club one free round-trip ticket, anywhere...

A: Definition:   The revenue recognition principle: The revenue recognition principle refers to the re...

Q: Jurassic Company owns equipment that cost $900,000 and has accumulated depreciation of $380,000. The...

A: Calculate the amount of impairment loss:

Q: The current asset section of Guardian Consultant’s balance sheet consists of cash, accounts receivab...

A: Click to see the answer

Q: What is transferred in costs? When do they occur?

A: Transferred in costs: Cost that is assigned to partially completed products that have been finished ...

Q: Reporting Bad Debt Expense and Accounts Receivable  E14-6  At the end of the prior year, Durne...

A: Following are the T-account of account receivable and allowance for doubtful:

Q: Explain the difference between net income and comprehensive income and how we report components of t...

A: Financial statement: Financial statement is a record of all the financial activities of the business...

Q: As a new controller, reply to this comment by a plant manager: “As I see it, our accountants maybe n...

A: Click to see the answer

Q: Rearden Metal has earnings per share of $2. It has 10 million shares outstanding and is trading at $...

A: According to our guidelines we provide solution of only first 3 sub part. if you want the solution o...

Q: Distinguish between inventoriable costs and period costs.

A: Inventoriable costs are those cost which are related with inventories like raw materials, work in pr...

Q: The income from operations and the amount of invested assets in each division of Beck Industries are...

A: The return on investment measure the percentage gain or loss earned on the investment made. It is ca...

Q: Discuss the primary differences between U.S. GAAP and IFRS with respect to the income statement, sta...

A: GAAP: GAAP stands for “Generally Accepted Accounting Principles”. It provides the accounting rules ...