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
Chapter1: Financial Statements And Business Decisions
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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
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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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