Acc Homework Problem # 1 processing costing (10 Points) Cromer Manufacturing Company produces a product in two departments: (1) Production and (2) Assembly. The company uses a process cost accounting system. a. Aug 3 Purchased raw materials for $51,000 on account. b. Aug 5 Raw materials requisitioned for production were: Direct materials Production department $30,000 Assembly department 14,000 c. Aug 8 Incurred labor costs of $57,000. d. Aug 12 Factory labor used: Production department $32,000 Assembly department 25,000 e.
Acc Homework Problem # 1 processing costing (10 Points) Cromer Manufacturing Company produces a product in two departments: (1) Production and (2) Assembly. The company uses a process cost accounting system. a. Aug 3 Purchased raw materials for $51,000 on account. b. Aug 5 Raw materials requisitioned for production were: Direct materials Production department $30,000 Assembly department 14,000 c. Aug 8 Incurred labor costs of $57,000. d. Aug 12 Factory labor used: Production department $32,000 Assembly department 25,000 e. Aug 15 Manufacturing overhead is applied to the product based on machine hours used in each department: Production department—250 machine hours at $30 per machine hour. Assembly department—500 machine hours at $20 per machine hour. f. Aug 20 Units costing $58,000 were completed in the Production Department and were transferred to the Assembly Department. g. Aug 25 Units costing $50,000 were completed in the Assembly Department and were transferred to finished goods. h. Aug 30Finished goods costing $20,000 were sold on account for $45,000. Instructions Prepare the journal entries to record the preceding transactions for Cromer Manufacturing Company. Although the book doesn’t explain this well, when you use process accounting and move items from one department to another, you must identify the department with the work in process. Problem #2 (10 points) Malone, Inc. uses a job order cost accounting system and keeps perpetual inventory records. Prepare journal entries to record the following transactions during the month of July. July 2 Purchased raw materials for $18,000 on account 9 Raw materials requisitioned by production: Direct materials $14,000 Indirect materials 2,000 14 Paid factory utilities, $2,300 and repairs for factory equipment, $4,000 21 Incurred $45,000 of factory labor 26 Time tickets indicated the following: Direct Labor (3,000 hrs × $12 per hr) = $36,000 Indirect Labor (1,000 hrs × $9 per…
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