Lighthouse Paper Company manufactures newsprint. The product is manufactured in two departments, Papermaking and Converting. Pulp is first placed into a vessel at the beginning of papermaking production. The following information concerns production in the Papermaking Department for March: Account Work in Process-Papermaking Date Mar. Item Department 1 Bal., 2,600 units, 35% completed 31 Direct materials, 105,000 units 31 Direct labor 31 Factory overhead 31 Goods transferred, 103,900 units 31 Bal., 3,700 units, 80% completed Debit 330,750 40,560 54,795 Credit ? Account No. Balance Debit 9,139 339,889 380,449 435,244 ? Credit a1. Prepare the March journal entry for the Papermaking Department for the materials charged to production. If an amount box does not require an entry, leave it blank. a2. Prepare the March journal entry for the Papermaking Department for the conversion costs charged to production. If an amount box does not require an entry, leave it blank. a3. Prepare the March journal entry for the Papermaking Department for the completed production transferred to the Converting Department. If required, round your interim calculations to two decimal places and your final answer to the nearest dollar. If an amount box does not require an entry, leave it blank. b. Determine the Work in Process-Papermaking Department March 31 balance. If required, round your interim calculations to two decimal places and your final answer to the nearest dollar. $
Lighthouse Paper Company manufactures newsprint. The product is manufactured in two departments, Papermaking and Converting. Pulp is first placed into a vessel at the beginning of papermaking production. The following information concerns production in the Papermaking Department for March: Account Work in Process-Papermaking Date Mar. Item Department 1 Bal., 2,600 units, 35% completed 31 Direct materials, 105,000 units 31 Direct labor 31 Factory overhead 31 Goods transferred, 103,900 units 31 Bal., 3,700 units, 80% completed Debit 330,750 40,560 54,795 Credit ? Account No. Balance Debit 9,139 339,889 380,449 435,244 ? Credit a1. Prepare the March journal entry for the Papermaking Department for the materials charged to production. If an amount box does not require an entry, leave it blank. a2. Prepare the March journal entry for the Papermaking Department for the conversion costs charged to production. If an amount box does not require an entry, leave it blank. a3. Prepare the March journal entry for the Papermaking Department for the completed production transferred to the Converting Department. If required, round your interim calculations to two decimal places and your final answer to the nearest dollar. If an amount box does not require an entry, leave it blank. b. Determine the Work in Process-Papermaking Department March 31 balance. If required, round your interim calculations to two decimal places and your final answer to the nearest dollar. $
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Concept explainers
Process Costing
Process costing is a sort of operation costing which is employed to determine the value of a product at each process or stage of producing process, applicable where goods produced from a series of continuous operations or procedure.
Job Costing
Job costing is adhesive costs of each and every job involved in the production processes. It is an accounting measure. It is a method which determines the cost of specific jobs, which are performed according to the consumer’s specifications. Job costing is possible only in businesses where the production is done as per the customer’s requirement. For example, some customers order to manufacture furniture as per their needs.
ABC Costing
Cost Accounting is a form of managerial accounting that helps the company in assessing the total variable cost so as to compute the cost of production. Cost accounting is generally used by the management so as to ensure better decision-making. In comparison to financial accounting, cost accounting has to follow a set standard ad can be used flexibly by the management as per their needs. The types of Cost Accounting include – Lean Accounting, Standard Costing, Marginal Costing and Activity Based Costing.
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Question
Transcribed Image Text:Cost of Production and Journal Entries
Lighthouse Paper Company manufactures newsprint. The
product is manufactured in two departments, Papermaking
and Converting. Pulp is first placed into a vessel at the
beginning of papermaking production. The following
information concerns production in the Papermaking
Department for March:
Account Work in Process-Papermaking
Date
Item
Department
Mar. 1 Bal., 2,600 units, 35% completed
31 Direct materials, 105,000 units
31 Direct labor
31 Factory overhead
31 Goods transferred, 103,900 units
31 Bal., 3,700 units, 80% completed
Debit
330,750
40,560
54,795
Credit
Account No.
Balance
Debit
9,139
339,889
380,449
435,244
?
Credit
a1. Prepare the March journal entry for the Papermaking
Department for the materials charged to production. If an
amount box does not require an entry, leave it blank.
a2. Prepare the March journal entry for the Papermaking
Department for the conversion costs charged to
production. If an amount box does not require an entry,
leave it blank.
E
a3. Prepare the March journal entry for the Papermaking
Department for the completed production transferred to
the Converting Department. If required, round your interim
calculations to two decimal places and your final answer to
the nearest dollar. If an amount box does not require an
entry, leave it blank.
18
b. Determine the Work in Process-Papermaking
Department March 31 balance. If required, round your
interim calculations to two decimal places and your final
answer to the nearest dollar.
$
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