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:
UNITS | |
Beginning work-in-process inventory | 70 rolls |
Transferred in from spinning department during November | 550 rolls |
Completed during November | 480 rolls |
Ending work in process inventory (80% complete for conversion work) | 140 rolls |
| |
COSTS | |
Beginning work in process inventory (transferred in costs, \(4,000, Materials costs, \)1,400 conversion costs, \(5,300) | \)10,700 |
Transferred in from the spinning department | 23,280 |
Material costs added during November | 14,100 |
Coversion cost added during November (manufacturing wages, \(8,725; manufacturing overhead allocated, \)43,991) | 52,716 |
Requirements
1. Prepare the November production cost report for Carla’s Dyeing Department.
The company uses the weighted-average method.
2. 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.
