Answered: Kopa Company manufactures CH-21 through…

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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Question

Kopa Company manufactures CH-21 through two processes: Mixing and Packaging. In July, the following costs were incurred.

	Mixing	Packaging
Raw materials used	$ 10,000	$ 28,000
Factory labor costs	8,000	36,000
Manufacturing overhead costs	12,000	54,000

Units completed at a cost of $ 21,000 in the Mixing Department are transferred to the Packaging Department. Units completed at a cost of $ 106,000 in the Packaging Department are transferred to Finished Goods.

Journalize the assignment of these costs to the two processes and the transfer of units as appropriate. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)

Account Titles and Explanation	Debit	Credit
(a)
work in process- Mixing
(c)
(To record materials used)
(a)
(b)
(c)
(To assign factory labor to production)
work in process-packaging
(b)
(c)
(To assign overhead to production)
(a)
(b)
(To record transfer of units to the Packaging Department)
Finished Goods Inventory
(b)
(To record transfer of units to finished goods)