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The Carlberg Company has two manufacturing departments, assembly and painting. The assembly department started 12,500 units during November. The following production activity unit and cost information refers to the assembly department's November production activities. Assembly Department Beginning work in process Units transferred out Ending work in process Units 3,000 10,000 5,500 Percent of Direct Materials Added 708 100% 803 Percent of Conversion 308 100% 30% $3,070 (includes $2,130 for direct materials and $940 for conversion) Beginning work in process inventory-Assembly dept Costs added during the month: Direct materials Conversion $ 20,910 $ 22,360 QS 16-13 Weighted average: Journal entry to transfer costs LO P4
Required: Prepare the November 30 journal entry to record the transfer of units (and costs) from the assembly department to the painting department. Use the weighted average method.

Sagot :

anthougo

Answer:

The Carlberg Company

Journal Entry:

Debit Work in Process (Painting Department) $36,000

Credit Work in Process (Assembly Department) $36,000

To record the transfer of 10,000 units from the assembly department to the painting department.

Explanation:

a) Data and Calculations:

Units started during November = 12,500

Assembly Department

                                              Units   Percent of Direct      Percent of

                                                          Materials Added    Conversion

Beginning work in process  3,000           70%                     30%

Units started during Nov.   12,500        

Units transferred out          10,000         100%                    100%

Ending work in process       5,500          80%                      30%

Cost of beginning work in process =    $2,130                   $940     $3,070

Costs added during the month:         $ 20,910            $ 22,360  $43,270

Total costs of production                    $23,040            $23,300   $46,340

Equivalent units of production:

Units transferred out          10,000         10,000                   10,000

Ending work in process       5,500          4,400                     1,650

Total equivalent units                             14,400                    11,650

Cost per equivalent unit:

Total costs of production                    $23,040                $23,300

Total equivalent units                             14,400                    11,650

Cost per equivalent unit                         $1.60                     $2.00

Cost assigned to:                         Materials           Conversion      Total

Units transferred out                   $16,000            $20,000        $36,000

                                              ($1.60*10,000)       ($2*10,000)

Ending Work in process                 7,040                  3,300           10,340

                                               ($1.60*4,400)         ($2*1,650)

Total costs allocated                  $23,040             $23,300       $46,340

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