The Chocolate Factory is well known for their famous Chocolate Cakes. The cakes are made by putting two thirds of their materials into the production of the product up front, and the last third of materials into the production of the product at the end. Conversion Costs are allocated evenly over the production of the products. At the beginning of the period there were 1,200 cakes in production that were 40% complete. There were 3,400 cakes completed during the period and there were 864 cakes in ending work in process that were also 40% complete. Total Direct Labor cost for the period was $15,000, Total Direct Material cost for the period was $40,000, and Total Factory Overhead was 18,000. The total production costs for the current period amounted to $90,000. This is computed as follows. $8,000 $9,000 Direct Materials cost already spent on Beginning WIP Conversion cost already spent on Beginning WIP Total INV cost of Beginning WIP DM Contributed during period $17,000 $40,000 DL contributed during he period FOH contributed during the period Total: If you sold 2,500 cakes for $35 a piece, record the two part journal entry necessary to memorialize it. $15,000 $18,000 $90,000 Total Conversion Total Total Malenel
The Chocolate Factory is well known for their famous Chocolate Cakes. The cakes are made by putting two thirds of their materials into the production of the product up front, and the last third of materials into the production of the product at the end. Conversion Costs are allocated evenly over the production of the products. At the beginning of the period there were 1,200 cakes in production that were 40% complete. There were 3,400 cakes completed during the period and there were 864 cakes in ending work in process that were also 40% complete. Total Direct Labor cost for the period was $15,000, Total Direct Material cost for the period was $40,000, and Total Factory Overhead was 18,000. The total production costs for the current period amounted to $90,000. This is computed as follows. $8,000 $9,000 Direct Materials cost already spent on Beginning WIP Conversion cost already spent on Beginning WIP Total INV cost of Beginning WIP DM Contributed during period $17,000 $40,000 DL contributed during he period FOH contributed during the period Total: If you sold 2,500 cakes for $35 a piece, record the two part journal entry necessary to memorialize it. $15,000 $18,000 $90,000 Total Conversion Total Total Malenel
Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter3: Process Cost Systems
Section: Chapter Questions
Problem 4CMA: A company is using process costing with the first-in, first-out (FIFO) method, and all costs are...
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Hi thank you for the help. I have a question though the beginning materials was calculated 12,000 x 0.33 = 400. but shouldnt it be 396?
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