Preparing production cost report, second department with beginning WIP; journal entries
Carla 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. Information for November 2018 follows:
Requirements
- Prepare the November production cost report for Carla’s Dyeing Department. The company uses the weighted-average method.
- Journalize all transactions affecting Carla’s Dyeing Department during November, including the entries that have already been posted. Assume labor costs are accrued and not yet paid.
Extracted text: UNITS Beginning Work-in-Process Inventory Transferred in from Spinning Department during November Completed during November Ending Work-in-Process Inventory (80% complete for conversion work) 70 rolls 550 rolls 480 rolls 140 rolls COSTS Beginning Work-in-Process Inventory (transferred in costs, $4,000; materials costs, $1,400; conversion costs, $5,300) Transferred in from Spinning Department Materials costs added during November Conversion costs added during November (manufacturing wages, $8,725; manufacturing overhead allocated, $43,991) $ 10,700 23,280 14,100 52,716