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Tringle Zipper Company accumulates costs for its single product using process costing
Tringle Zipper Company accumulates costs for its single product using process costing. Direct materials is added at the beginning of the production process and conversion activity occurs uniformity throughout the process. A partially completed production repost for May follows.
|
Production report, May |
||||
|
Physical units |
Percentage of completion with respect to conversion 40% |
Equivalent units |
||
|
Direct materials |
Conversion |
|||
|
Work in process, 1 May |
25000 |
40% |
||
|
Units started during May |
30000 |
|||
|
55000 |
||||
|
Units completed and transferred out during May |
35000 |
35000 |
35000 |
|
|
Work in Process, 31 May |
20000 |
80% |
||
|
Total units accounted for |
55000 |
|||
|
Direct Materials |
Conversions |
Total |
||
|
Work in process, 1 May |
$143,000 |
$474,700 |
$617,700 |
|
|
Costs incurred during May |
165000 |
2009000 |
2174000 |
|
|
Total costs to account for |
$308,000 |
$2,583,700 |
$2,791,700 |
|
Required
Prepare a journal entry to record the transfer of the cost of goods completed and transferred out during May
Expert Solution
| Physical units | Material | Conversion | |
| Units to account for | |||
| Work in Process Beginning | 25000 | ||
| Started during the period | 30000 | ||
| Total units to account for | 55000 | ||
| Units Accounted for | |||
| Completed and transferred | 35000 | 35000 | 35000 |
| Work in Process Ending | 20000 | 20000 | 16000 |
| Total Units Accounted for | 55000 | ||
| Equivalent units | 55000 | 51000 | |
| Material | Conversion | Total | |
| Cost of Beginning Work in Process | $ 143,000 | $ 474,700 | $ 617,700 |
| Cost added during the period | $ 165,000 | $ 2,009,000 | $ 2,174,000 |
| Total Cost to account for | $ 308,000 | $ 2,483,700 | $ 2,791,700 |
| Equivalent units of Production | 55000 | 51000 | |
| Cost per equivalent unit | $ 5.60 | $ 48.70 | $ 54.30 |
| Material | Conversion | Total | |
| Units Completed and transferred out | |||
| Units transferred to next department | 35000 | 35000 | |
| Cost per equivalent unit | $ 5.60 | $ 48.70 | |
| Cost of units transferred out | $ 196,000 | $ 1,704,500 | $ 1,900,500 |
| Material | Conversion | Total | |
| Ending work in Process Inventory | |||
| Equivalent units of Production | 20000 | 16000 | |
| Cost per equivalent unit | $ 5.60 | $ 48.70 | |
| Cost of Ending work in Process Inventory | $ 112,000 | $ 779,200 | $ 891,200 |
| Total Costs Accounted for | $ 308,000 | $ 2,483,700 | $ 2,791,700 |
| Reconciliation | |||
| Costs to be accounted for : | |||
| Cost of beginning work in process inventory | $ 617,700 | ||
| Costs added to the production during the year | $ 2,174,000 | ||
| Total Costs to be accounted for | $ 2,791,700 | ||
| Cost of Ending work in Process Inventory | $ 891,200 | ||
| Cost of units transferred out | $ 1,900,500 | ||
| Total Costs accounted for | $ 2,791,700 |
Assuming goods completed finished goods.
| Account Titles | Debit | Credit |
| Finished Goods Inventory | $ 1,900,500 | |
| Work in Process | $ 1,900,500 |
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