Exercise 6-24 (Algo) Basic Cost Flow Model (LO 6-1)Assume that the following events occurred at Lakewood, Incorporated last month.Incurred direct labor costs of $700,000.Completed work on 70 percent of the work in process. Costs are assigned equally across all work in process.Transferred 80 percent of the materials purchased to work in process.Purchased $630,000 in direct materials.Determined that manufacturing overhead was $565,000.The inventory accounts have no beginning balances. All costs incurred were debited to the appropriate account and credited to Accounts Payable.Required:Give the amounts for the following items in the Work-in-Process account:1. Transfer-In (TI)2. Transfer-Out (TO)3. Ending Balance (EB)

The Transfer-In (TI) is the total cost of all the materials, labor, and overhead that were…

Answered: Exercise 6-24 (Algo) Basic Cost Flow…

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter6: Process Costing

Section: Chapter Questions

Problem 20E: Holmes Products, Inc., produces plastic cases used for video cameras. The product passes through...

Assume that the following events occurred at Lakewood, Incorporated last month.

Incurred direct labor costs of $700,000.
Completed work on 70 percent of the work in process. Costs are assigned equally across all work in process.
Transferred 80 percent of the materials purchased to work in process.
Purchased $630,000 in direct materials.
Determined that manufacturing overhead was $565,000.
The inventory accounts have no beginning balances. All costs incurred were debited to the appropriate account and credited to Accounts Payable.