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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

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Could you check the working and help with the journal entry portion.

CHAPTER 20 WORKSHEET 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 Direct Materials cost already spent on Beginning WIP Conversion cost already spent on Beginning WIP Total INV cost of Beginning WIP $9,000 $17,000 DM Contributed during period $40,000 DL contributed during he period $15,000 FOH contributed during the period $18,000 Total: $90,000 1200 Begining 3,400 cakes completed If you sold 2,500 cakes for $35 a piece, record the two part journal entry necessary to memorialize it. WIP (60%) 12.00x 33.33=396 864 Ending WIP (40%) Conversion 720 2200 345.6 Conversion Total = 3,265.6 Conversion Formula Total Product Conversion Tohl during + Pt.l period (100%) 01,200 X .60 Material 396 22.00 576.03 Material Total =3172.03 Materials formula Total Product Malenals Total де Comment Highlight Draw go Total Conversion Total 720 conversion 396 Materials @3400-1200-2200 3864 X-40 345, 6 Conversion Material 2200 X.100 2,200 = Conversion Materials Conversion = 4264 12.85.6 Total Malerel Totel 4264 3172.03 864 66.67-576.03 = 000 000 000 -21.34 T Text Fill & Sign More tools
Transcribed Image Text:CHAPTER 20 WORKSHEET 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 Direct Materials cost already spent on Beginning WIP Conversion cost already spent on Beginning WIP Total INV cost of Beginning WIP $9,000 $17,000 DM Contributed during period $40,000 DL contributed during he period $15,000 FOH contributed during the period $18,000 Total: $90,000 1200 Begining 3,400 cakes completed If you sold 2,500 cakes for $35 a piece, record the two part journal entry necessary to memorialize it. WIP (60%) 12.00x 33.33=396 864 Ending WIP (40%) Conversion 720 2200 345.6 Conversion Total = 3,265.6 Conversion Formula Total Product Conversion Tohl during + Pt.l period (100%) 01,200 X .60 Material 396 22.00 576.03 Material Total =3172.03 Materials formula Total Product Malenals Total де Comment Highlight Draw go Total Conversion Total 720 conversion 396 Materials @3400-1200-2200 3864 X-40 345, 6 Conversion Material 2200 X.100 2,200 = Conversion Materials Conversion = 4264 12.85.6 Total Malerel Totel 4264 3172.03 864 66.67-576.03 = 000 000 000 -21.34 T Text Fill & Sign More tools
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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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