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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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Subject:cost accounting

1. Sheena Company uses two departments to produce a product. The following data were taken from the books of Sweet Treats for the month of January, 2019. Department 1 Department 2 Started 120,000 Completed and transferred In process, end Stage of completion 80,000 60,000 40,000 20,000 65% 80% Costs: Materials 960,000 490,000 Labor 660,000 380,000 Factory overhead Department 1 - materials are added 70% at the beginning of the process, remaining 30% added when 50% done. 440,000 228,000 Department 2 - 75% of materials are added at the beginning of the process, remaining 25% added at the end of the process. Required: • Compute for the EUP (both materials and conversion costs) of Department 1 and 2. • Prepare a cost of production report using Average method for both departments Prepare journal entries to record the above transaction
Transcribed Image Text:1. Sheena Company uses two departments to produce a product. The following data were taken from the books of Sweet Treats for the month of January, 2019. Department 1 Department 2 Started 120,000 Completed and transferred In process, end Stage of completion 80,000 60,000 40,000 20,000 65% 80% Costs: Materials 960,000 490,000 Labor 660,000 380,000 Factory overhead Department 1 - materials are added 70% at the beginning of the process, remaining 30% added when 50% done. 440,000 228,000 Department 2 - 75% of materials are added at the beginning of the process, remaining 25% added at the end of the process. Required: • Compute for the EUP (both materials and conversion costs) of Department 1 and 2. • Prepare a cost of production report using Average method for both departments Prepare journal entries to record the above transaction
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