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Prepare journal entries to record the following production activities.

1. Purchased \(80,000 of raw materials on credit.

2. Used \)42,000 of direct materials in production.

3. Used $22,500 of indirect materials in production.

Short Answer

Expert verified

Both sides of the journal totals$144,500.

Step by step solution

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01

Definition of Direct Material

Direct material can be defined as the material used in the production process that can be identified directly by physical inspection of the product. Such as glass can be directly identified by physical inspection of the screen.

02

Journal entries for production activities

Date

Accounts and Explanation

Debit ($)

Credit ($)

1

Raw material inventory

80,000

Account payable

80,000

2

Work-in-process inventory

42,000

Raw material inventory

42,000

3

Factory overhead

22,500

Raw material inventory

22,500

$144,500

$144,500

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Most popular questions from this chapter

At the end of a period, what balance should remain in the Factory Overhead account?

Braun Company produces its product through a single processing department. Direct materials are added at the beginning of the process. Conversion costs are added to the product evenly throughout the process. The company uses monthly reporting periods for its weighted-average process costing. The Work in Process Inventory account had a balance of \(21,300 on November 1, which consisted of \)6,800 of direct materials and \(14,500 of conversion costs.

During the month, the company incurred the following costs:

Direct materials

\) 116,400

Conversion

1,067,000

During November, the company started 104,500 units and transferred 100,000 units to finished goods. At the end of the month, the work in process inventory consisted of 12,000 units that were 100% complete with respect to direct materials and 25% complete with respect to conversion.

Required

  1. Prepare the companyโ€™s process cost summary for November using the weighted-average method.
  2. Prepare the journal entry dated November 30 to transfer the cost of the completed units to finished goods inventory

The following refers to units processed by an ice cream maker in July. Compute the total equivalent units of production with respect to conversion for July using the weighted-average method.

Gallons of product

Percent of conversion added

Beginning work-in-process

320,000

25%

Goods started

620,000

100

Goods completed

680,000

100

Ending work-in-process

260,000

75

Identify the control document for materials flow when a materials requisition slip is not used.

Question: The Plastic Flowerpots Company has two manufacturing departments, molding, and packaging. At the beginning of the month, the molding department has 2,000 units in inventory, 70% complete as to materials. During the month, the molding department started 18,000 units. At the end of the month, the molding department had 3,000 units in ending inventory, 80% complete as to materials. Units completed in the molding department are transferred into the packaging department.

Cost information for the molding department for the month is as follows:

Beginning work in process inventory (direct materials)

$ 1,200

Direct materials added during the month

27,900

Using the weighted-average method,(b) cost per equivalent unit of production for materials for the month. (Round to two decimal places.)

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