Question

Additional Exercise 7.7 Process costing under weighted average, speliape, journal entries Victoria's Closet mass produces uxurious sleepwear for women. Consider the fellowing data for the Flannel Night Cown Department far the month of January. All direct materials are added at the beginning af production in the department, and converson costs are noned evergy throughout preduction Inspection occurs ณhen production as 100% completed Normal spoľa9e as 7,920 units for the month. Physical Units 13,200 88,800 Beginning WIP (25% complete) Started duting January Good units completed and braalerred out during current period 13,200 From beginning work in process Sterted and completed 9,600 Spoiled unts ending wip (71% complete) Totel accounted for Beginning WIP s 264,000 00,000 1,776,000 Direct materials Totel beginning Wi Costs added during ourrent peri 30,40 Conversion casts Costs to account for Required Prepare a process cost report using the weighted average method. (Round all answers to zero decimal places.) Weighted Average Units Costs Total units completed and transferred out: Good units Normal spoilage Total transferred out Abnormal spoilage Ending WIP Direct materials Conversion costs Total ending WIP cost Total Good Units Accounted For Total Accounted For Write out the journal entries for this period's work. (Round answers to 0 decimal places.) Write out the journal entries for this period's work. (Round answers to O decimal places.) Description Debi Credit To record the cost of raw materials used in production during January.) To record the conversion costs incurred in To record the cost of 73,200 units transferred to inished goods during January (includes the cost of normal spoilage).) To record the cost of abnormal spoilage during

Answer 1

Particulars No of Units Percentage of completion Direct Materials Conversion Costs Total Beginning WIP Beginning WIP 13200 5% Working Calculation details 264,000/25%x75% 36,000/25%x75% 25% 264,000$ 792,000 108,000 900,000 36,000 300,000 $ Costs added during the period Particulars Direct Materials Conversion Costs Costs of accounted for Working Calculation details 20 17,76,000/88,800 13 11,30,400/88,800 Cost per 88800 Cost per Unit $1,776,000 $ 1,130,400 $ $ 2,906,400 Particulars No of Units Percentage of completion Direct Materials Conversion Costs Total Beginning WIP Ending WIP 19200 75% 19,200x20x75% $ 19,200x13x75% $ 288,000 183,308 471,308

Total Units completed and transferred out Good Units Normal Spoilage Total transferred units Abnormal Spoilage Ending WIP Direct Materials Conversion Costs Total Beginning WIP Units Costs Per unit cost 73200 $ 3,806,400 3806400/73200-52 7920 52x7920-411840 81120 $ 3,394,560 1680 52x1680-87360 19200 288,000 183,308 471,308 Total good units accouted 82800 $3,778,508