Question

Dixon Vivid manufactures crayons in a three-step procesa: mixing, molding, and packaging. Click the ion to view the additional infomation.) At March 31, before recording the transfer of costs from the Mixing Department to the Molding Department, the Dixon Vivid general ledger included the following account EEB (Click the icon to view the account. Read the raquiramarnis Requirement 1. Prepare a production cost report for the Mixing Department tor March. Round equivalent unit of production costs to tour decimal places. Round all other costs to the nearest whole dollar. (Complete all answer boxes. Enter a " for any zero balances. Round cost per un amounts to four decimal places. Abbreviations used: EL equivalent units of production; WIP-work-in-pracess.) Dixon Vivid X More Info Production Cost Report- Mixing Department Month Ended March 31 Equivalent Units The Mixing Department combines the direct materials of paraffin wax and pigments. The heated mixture is pumped to Physical Molding Department, where it is ods Direct Conversion Units Materials Costs and are transteod to the Packing Deeartnt ore nan annere are UNITS added and the crayons are boxed. Units to account for In the Mixing Department, the direct materials are added at the beginning of the process and the conversion oosts are incurred evenly throughout the process. hatch of crownns that wiere 3ns of the way through the produuction process. The Total units to account for beginning balance in Work-in-Procesa Inventory-Mixing was $27,100, which During March, 3,400 batchea were started in production, The Mixing Department transferred 2,600 batches to the Molding Department in March, and 1,100 were still f the way through the Units accounted for mixing crocess Dixcn Vivid uses FIFO process cosling. Transferred to Molding Department Print Done Total units ac0ounted for Data Table Conversion Direct Total Cost COSTS Materials Costs Costs per Unit Costs to account for Work-in-Process Inventory-Mixing 27,100 Balance, Mar. 1 Direct malerials 44 200 Total costs to account forn Direct labor 21.330 33.750 Manufacturing overhead Print Done Cost erequivalent unit Costs acoounted for Total costs for beginning WIP Transforred to Mixing Department Total oosts accounted for Requirement 2. Journalize all transactions affectingg the Mixing Department during March, including the entries that have already been posted. Assume labor costs are accrued and not yet paid. Begin with a summary joumal entry to record the assignment of direct materials and direct labor costs, and the allocation of manufacturing overhead to the Mixing Department. (Prepare a single compound joumal entry. Record debits first, then credits. Exclude explanations from journal entries.) Date Accounts Debit Credit Mar. 31 Prepare the journal entry to reoord the cost of the unils (crayors) corpleted and transferred out of the Mixing Depariment Accounts Debit Credit Date Mar. 31

Answer 1

Part 1

		Equivalent units
UNITS	Physical units	Direct materials	Conversion costs
Units to account for:
Beginning work-in-process	300
Started in production	3400
Total units to account for	3700
Units accounted for:
Beginning work-in-process (300*70%=210)	300	0	210
Started and completed (2600-300=2300)	2300	2300	2300
Transferred to Molding Department	2600	2300	2510
Ending work-in-process (1100*50%=550)	1100	1100	550
Total units accounted for	3700	3400	3060
COSTS		Direct materials	Conversion costs	Total costs	Cost per unit
Costs to account for:
Beginning work-in-process		11200	15900	27100
Costs added during the period (21330+33750)		44200	55080	99280
Total costs to account for		55400	70980	126380
Costs added during the period		44200	55080
Divided by: EUP this period		3400	3060
Cost per equivalent unit		$13.0000	$18.0000
Costs accounted for:
Beginning work-in-process		11200	15900	27100
Costs to complete beginning WIP (210*18=		0	3780	3780
Total costs for beginning WIP (30880/300)		11200	19680	30880	102.9333
Started and completed (2300*13=29900); (2300*18=41400); (71300/2300)		29900	41400	71300	31.0000
Transferred to Mixing Department		41100	61080	102180
Ending work-in-process (1100*13=14300); (550*18)		14300	9900	24200
Total costs accounted for		55400	70980	126380

Part 2

Date	accounts	Debit	Credit
Mar. 31	Work-in-Process Inventory—Mixing	99280
	Raw Materials Inventory		44200
	Wages Payable		21330
	Manufacturing Overhead		33750
	(to record the assignment of direct materials and direct labor costs, and the allocation of manufacturing overhead to the Mixing Department.)
Mar.31	Work-in-Process Inventory—Molding	102180
	Work-in-Process Inventory—Mixing		102180
	(to record the cost of the units (crayons) completed and transferred out of the Mixing Department.)