- Paints By Lucy Prepares And Packages Paint Products The Company Has Two Departments 1 Blending And 2 Packaging Dire 1 (49.53 KiB) Viewed 10 times
- Paints By Lucy Prepares And Packages Paint Products The Company Has Two Departments 1 Blending And 2 Packaging Dire 2 (49.12 KiB) Viewed 10 times
- Paints By Lucy Prepares And Packages Paint Products The Company Has Two Departments 1 Blending And 2 Packaging Dire 3 (54.06 KiB) Viewed 10 times
Paints by Lucy prepares and packages paint products. The company has two departments (1) Blending and (2) Packaging Direct materials are added at the beginning of the blending process (dyes) and at the end of the packaging process (cans) Conversion costs are added evenly throughout each process. Data from the month of August for the Blending Department are as follows (Click the icon to view the data from August) (Click the icon to view the assignment of costs.). Read the requirements Requirement 1. Prepare the journal entry to record the use of direct materials and direct labor and the allocation of manufacturing overhead to the Blending Department. Also, give the journal entry to record the costs of the gallons completed and transferred out to the Packaging Department. Assume the wages are unpaid Begin by preparing the journal entry to record the costs to the Blending Department. (Record debits first, then credits Exclude explanations from any journal entries.) Date Journal Entry Accounts Debit Credit 4
Gallons Beginning work in process inventory Started production Completed and transferred out to Packaging in August Ending work in process inventory (30% of the way through the blending process) Costs: Beginning work in process inventory Costs added during August Direct materials (dyes) Direct labor Manufacturing overhead Total costs added during August. ☆ $ SA 0 9,700 gallons 6,800 gallons 2,900 gallons 0 5,820 1,000 1,301 8,121
a. Paints by Lucy Blending Department Assigning Costs Completed and transferred out: Equivalent units completed and transferred out Multiplied by: Cost per equivalent unit Costs assigned to units completed and transferred out b. Ending work in process: Equivalent units in ending work in process, August 31 Multiplied by Cost per equivalent unit Costs assigned to units in ending work in process, August 31 Total costs accounted for Direct Materials S $ $ $ 6,800 Conversion Costs 0.60 $ 4,080 $ 2,900 0.60 $ 1,740 $ 6,800 0.30 2,040 $ 870 0.30 261 $ Total 6,120 2,001 8,121