Frito-Lay, Inc., manufactures snack foods. Production of Doritos occurs in four steps: cleaning, mixing, cooking, and drying and packaging. The accounting records of a Frito-Lay plant, located in Casa...

Frito-Lay, Inc., manufactures snack foods. Production of Doritos occurs in four steps: cleaning, mixing, cooking, and drying and packaging.  The accounting records of a Frito-Lay plant, located in Casa Grande, Arizona included the following information for Doritos in its Drying and Packaging Department during a week.

                                          Summary of Units

Work in process, beginning, 5,000 cases

Units transferred in from the Cooking Department, 20,000

Units completed, 21,000

Work in process, ending, 4,000 units, 40% completed for conversion costs

                                          Summary of Costs

Work in process, beginning ($29,000 transferred-in costs,

          $9,060 conversion costs)                    $38,060

Transferred in from the Cooking Department                    96,000

Direct materials added (at the end of the process)                    25,200

Conversion costs added                    38,400

Total costs to account for                                                                            $197,660

Instructions:

1. Prepare a cost of production report for the Drying and Packaging Department.

1. Prepare all journal entries associated with the department.

1. Post the above entries to a “T” account, making sure it balances with the amount you assigned to ending work in process on the cost of production report.