(a) Complete All Things Brass Work-In-Process Inventory – Polishing Process T-account, clearly showing the ending balance. (b) Prepare the journal entries for the: ▪assignment of direct materials, direct labour incurred, and the manufacturing overhead applied to the Polishing Process ▪cost of the units completed and transferred out to the Packaging Process
(a) Complete All Things Brass Work-In-Process Inventory – Polishing Process T-account, clearly showing the ending balance. (b) Prepare the journal entries for the: ▪assignment of direct materials, direct labour incurred, and the manufacturing overhead applied to the Polishing Process ▪cost of the units completed and transferred out to the Packaging Process
Cornerstones of Cost Management (Cornerstones Series)
4th Edition
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Chapter6: Process Costing
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Problem 42P: Larkin Company produces leather strips for western belts using three processes: cutting, design and...
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(a) Complete All Things Brass Work-In-Process Inventory – Polishing Process T-account, clearly showing the ending balance.
(b) Prepare the
▪assignment of direct materials, direct labour incurred, and the manufacturing
the Polishing
▪cost
![All Things Brass produces brass handles for the furniture industry in a four-stage process -Mixing,
Moulding, Polishing and Packaging. Costs incurred in the Polishing Department during January are
summarized as follows:
WIP - Polishing Process A/C
$ 0
January 1 Bal.
Transfer from Moulding
20,000
1,310,000
Direct Materials Added
391,600
Direct Labour
638,000
Manufacturing Overhead
307,400
Normal losses are estimated to be 2%% of input during the period. Inspection takes place during the
processing operation, at which point damaged handles are separated from good handles and sold as scrap
to local furniture manufacturers at $85 each.
At inspection, 2,000 handles were rejected as scrap. These units had reached the following degree of
completion:
Transfer from Moulding
100%
Direct material added
40%
Conversion costs
20%
Work-in-progress at the end of January was 4,000 handles and had reached the following degree of
completion:
Transfer from Moulding
100%
Direct material added
80%
Conversion costs
50%
Direct materials added and conversion costs are incurred uniformly throughout the process.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F9bede240-2ef0-4130-b475-cbbadae289bd%2Fcbf73366-8d96-44a5-919b-eddc5690a56b%2Fia0htog_processed.png&w=3840&q=75)
Transcribed Image Text:All Things Brass produces brass handles for the furniture industry in a four-stage process -Mixing,
Moulding, Polishing and Packaging. Costs incurred in the Polishing Department during January are
summarized as follows:
WIP - Polishing Process A/C
$ 0
January 1 Bal.
Transfer from Moulding
20,000
1,310,000
Direct Materials Added
391,600
Direct Labour
638,000
Manufacturing Overhead
307,400
Normal losses are estimated to be 2%% of input during the period. Inspection takes place during the
processing operation, at which point damaged handles are separated from good handles and sold as scrap
to local furniture manufacturers at $85 each.
At inspection, 2,000 handles were rejected as scrap. These units had reached the following degree of
completion:
Transfer from Moulding
100%
Direct material added
40%
Conversion costs
20%
Work-in-progress at the end of January was 4,000 handles and had reached the following degree of
completion:
Transfer from Moulding
100%
Direct material added
80%
Conversion costs
50%
Direct materials added and conversion costs are incurred uniformly throughout the process.
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