Question 1: The following information relates to Grimsley Company: ey ny A DEPARTMENTS Units: Beginning units in process: Direct materials 100% complete; conversion costs 30% complete Direct materials 100% complete; conversion costs 60% complete Started in process during the period Units received from Department 1 Units added to production Transferred to finished goods inventory Ending units in process: Direct materials 100% complete; conversion costs 65% complete Direct materials 100% complete; conversion costs 40% complete 10,000 5,000 40,000 44,000 4,000 45,000 6,000 8,000 Costs: Beginning work-in-process inventory: From preceding department Direct materials $ 15,000 18,000 7,000 $ 40,000 $ 40,000 30,000 25,000 12,000 $107,000 Direct labor Factory overhead Total Added during the period: Direct materials Direct labor $ 80,000 110,000 50,000 $240,000 $ 50,000 70,000 40,000 $160,000 Factory overhead (applied) Total Additional Information: All direct materials are added at the beginning of each depart- ment; conversion costs are incurred evenly throughout the process. Required: Prepare a cost of production report and journal entries for both departments under the: I Weighted average method 2 Fifo method
Question 1: The following information relates to Grimsley Company: ey ny A DEPARTMENTS Units: Beginning units in process: Direct materials 100% complete; conversion costs 30% complete Direct materials 100% complete; conversion costs 60% complete Started in process during the period Units received from Department 1 Units added to production Transferred to finished goods inventory Ending units in process: Direct materials 100% complete; conversion costs 65% complete Direct materials 100% complete; conversion costs 40% complete 10,000 5,000 40,000 44,000 4,000 45,000 6,000 8,000 Costs: Beginning work-in-process inventory: From preceding department Direct materials $ 15,000 18,000 7,000 $ 40,000 $ 40,000 30,000 25,000 12,000 $107,000 Direct labor Factory overhead Total Added during the period: Direct materials Direct labor $ 80,000 110,000 50,000 $240,000 $ 50,000 70,000 40,000 $160,000 Factory overhead (applied) Total Additional Information: All direct materials are added at the beginning of each depart- ment; conversion costs are incurred evenly throughout the process. Required: Prepare a cost of production report and journal entries for both departments under the: I Weighted average method 2 Fifo method
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Transcribed Image Text:Question 1:
The following information relates to Grimsley Company:
ey
ny
A DEPARTMENTS
Units:
Beginning units in process:
Direct materials 100% complete; conversion costs
30% complete
Direct materials 100% complete; conversion costs
60% complete
Started in process during the period
Units received from Department 1
Units added to production
Transferred to finished goods inventory
Ending units in process:
Direct materials 100% complete; conversion costs
65% complete
Direct materials 100% complete; conversion costs
40% complete
10,000
5,000
40,000
44,000
4,000
45,000
6,000
8,000
Costs:
Beginning work-in-process inventory:
From preceding department
Direct materials
$ 15,000
18,000
7,000
$ 40,000
$ 40,000
30,000
25,000
12,000
$107,000
Direct labor
Factory overhead
Total
Added during the period:
Direct materials
Direct labor
$ 80,000
110,000
50,000
$240,000
$ 50,000
70,000
40,000
$160,000
Factory overhead (applied)
Total
Additional Information: All direct materials are added at the beginning of each depart-
ment; conversion costs are incurred evenly throughout the process.
Required: Prepare a cost of production report and journal entries for both departments
under the:
I Weighted average method
2 Fifo method
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