Computing equivalent units for a second department with beginning work in process inventory; preparing a production cost report and recording transactions on the basis of the report’s information; weighted average method Christine 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. Christine uses weighted average process costing. Information for November 2012 follows:
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Units: |
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Beginning work in process inventory |
90 rolls |
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Transferred in from Spinning Department during November |
540 rolls |
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Completed during November |
510 rolls |
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Ending work in process (80% complete as to |
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conversion work) |
120 rolls |
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Costs: |
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Beginning work in process (transferred in cost, $4,900; |
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materials cost, $1,390; conversion costs, $4,900) |
$ 11,190 |
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Transferred in from Spinning Department during November |
22,190 |
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Materials cost added during November |
11,210 |
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Conversion costs added during November (manufacturing |
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wages, $8,225; manufacturing overhead, $43,839) |
52,064
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Requirements
1. Prepare a timeline for Christine’s Dyeing Department.
2. Use the timeline to help you compute the equivalent units, cost per equivalent unit, and total costs to account for in Christine’s Dyeing Department for November.
3. Prepare the November production cost report for Christine’s Dyeing Department. 4. Journalize all transactions affecting Christine’s Dyeing Department during November, including the entries that have already been posted.