Required: 1. Jonathan has noticed that his production manager has omitted some of the data on the Cost of Production panel. Determine the missing information. If there is no amount or an amount is zero, enter "0".* 2. On the February Cost Analysis panel, determine the cost per unit of direct materials and for conversion for the month of February using the completed data on the Cost of Production panel.* 3. On the March Cost Analysis panel, determine the cost per unit of direct materials and for conversion for the month of March using the completed data on the Cost of Production panel.* 4. After reviewing your work on the February Cost Analysis and March Cost Analysis panels, assist Jonathan Groat in evaluating the Mixing Department’s performance by answering the questions on the Mixing Dept. Evaluation panel. 5. On March 31, using the data provided on the panels, journalize the entry to move the appropriate amount of cost from the Mixing Department to the Baking Department. Refer to the Chart of Accounts for exact wording of account titles. *Round your per-unit computations to the nearest cent, if required. Chart of Accounts CHART OF ACCOUNTS Grainy Goodness Company General Ledger ASSETS 110 Cash 112 Accounts Receivable 125 Notes Receivable 126 Interest Receivable 131 Materials 141 Work in Process-Mixing 142 Work in Process-Baking 143 Work in Process-Packaging 151 Factory Overhead-Mixing 152 Factory Overhead-Baking 153 Factory Overhead-Packaging 161 Finished Goods 171 Office Supplies 172 Prepaid Insurance 173 Prepaid Expenses 181 Land 191 Factory 192 Accumulated Depreciation-Factory LIABILITIES 210 Accounts Payable 215 Notes Payable 221 Utilities Payable 236 Interest Payable 251 Wages Payable EQUITY 310 Common Stock 311 Retained Earnings 312 Dividends 313 Income Summary REVENUE 410 Sales 610 Interest Revenue EXPENSES 510 Cost of Goods Sold 520 Wages Expense 529 Selling Expenses 531 Utilities Expense 532 Depreciation Expense-Factory 533 Insurance Expense 534 Office Supplies Expense 540 Administrative Expenses 590 Miscellaneous Expense 710 Interest Expense Cost of Production 1. Jonathan has noticed that his production manager has omitted some of the data on the Cost of Production panel. Determine the missing information. If there is no amount or an amount is zero, enter "0". Round your per-unit computations to the nearest cent, if required. GRAINY GOODNESS COMPANY Cost of Production Report-Mixing Department For the Month Ended March 31 UNITS Whole Units Equivalent Units Direct Materials Conversion Units charged to production: Inventory in process, March 1 2,000 Received from materials storeroom 38,000 Total units accounted for by the Mixing Department 40,000 Units to be assigned costs: Inventory in process, March 1 (35% completed) 2,000 Started and completed in March 35,000 35,000 35,000 Transferred to Baking Department in March 37,000 Inventory in process, March 31 (80% completed) 3,000 Total units to be assigned costs 40,000 COSTS Costs Direct Materials Conversion Total Costs per equivalent unit: Total costs for March in Mixing Department $40,660 $40,635 Total equivalent units ÷ ÷ Cost per equivalent unit Costs assigned to production: Inventory in process, March 1 $2,300 $525 $2,825 Costs incurred in March 81,295 Total costs accounted for by the Mixing Department $84,120 Cost allocated to completed and partially completed units: Inventory in process, March 1-balance $2,825 To complete inventory in process, March 1 $0.00 $1,365 1,365 Cost of completed March 1 work in process $4,190 Started and completed in March $37,450 $36,750 74,200 Transferred to Baking Department in March Inventory in process, March 31 $3,210 $2,520 Total costs assigned by the Mixing Department February Cost Analysis 2. Determine the cost per unit of direct materials and for conversion for the month of February Cost Analysis for February - Mixing Department Amount Equivalent Units Cost per Unit Direct Materials in inventory in process, March 1 Conversion costs in inventory in process, March 1 Total cost per unit March Cost Analysis 3. Determine the cost per unit of direct materials and for conversion for the month of March using the completed data on the Cost of Production panel. Cost Analysis for March- Mixing Department Amount Equivalent Units Cost per Unit Costs for March: Direct Materials Costs for March: Conversion Total cost per unit Mixing Dept. Evaluation 4.In March, was the Mixing Department’s total cost per unit higher or lower than in February? For which component(s) was the cost per unit for March higher than in February? What is most probably your recommendation to Jonathan Groat given your computations? Journal 5. On March 31, using the data provided on the panels, journalize the entry to move the appropriate amount of cost from the Mixing Department to the Baking Department. Refer to the Chart of Accounts for exact wording of account titles. PAGE 15 JOURNAL ACCOUNTING EQUATION

Required: 1. Jonathan has noticed that his production manager has omitted some of the data on the Cost of Production panel. Determine the missing information. If there is no amount or an amount is zero, enter "0".* 2. On the February Cost Analysis panel, determine the cost per unit of direct materials and for conversion for the month of February using the completed data on the Cost of Production panel.* 3. On the March Cost Analysis panel, determine the cost per unit of direct materials and for conversion for the month of March using the completed data on the Cost of Production panel.* 4. After reviewing your work on the February Cost Analysis and March Cost Analysis panels, assist Jonathan Groat in evaluating the Mixing Department’s performance by answering the questions on the Mixing Dept. Evaluation panel. 5. On March 31, using the data provided on the panels, journalize the entry to move the appropriate amount of cost from the Mixing Department to the Baking Department. Refer to the Chart of Accounts for exact wording of account titles. *Round your per-unit computations to the nearest cent, if required. Chart of Accounts CHART OF ACCOUNTS Grainy Goodness Company General Ledger ASSETS 110 Cash 112 Accounts Receivable 125 Notes Receivable 126 Interest Receivable 131 Materials 141 Work in Process-Mixing 142 Work in Process-Baking 143 Work in Process-Packaging 151 Factory Overhead-Mixing 152 Factory Overhead-Baking 153 Factory Overhead-Packaging 161 Finished Goods 171 Office Supplies 172 Prepaid Insurance 173 Prepaid Expenses 181 Land 191 Factory 192 Accumulated Depreciation-Factory LIABILITIES 210 Accounts Payable 215 Notes Payable 221 Utilities Payable 236 Interest Payable 251 Wages Payable EQUITY 310 Common Stock 311 Retained Earnings 312 Dividends 313 Income Summary REVENUE 410 Sales 610 Interest Revenue EXPENSES 510 Cost of Goods Sold 520 Wages Expense 529 Selling Expenses 531 Utilities Expense 532 Depreciation Expense-Factory 533 Insurance Expense 534 Office Supplies Expense 540 Administrative Expenses 590 Miscellaneous Expense 710 Interest Expense Cost of Production 1. Jonathan has noticed that his production manager has omitted some of the data on the Cost of Production panel. Determine the missing information. If there is no amount or an amount is zero, enter "0". Round your per-unit computations to the nearest cent, if required. GRAINY GOODNESS COMPANY Cost of Production Report-Mixing Department For the Month Ended March 31 UNITS Whole Units Equivalent Units Direct Materials Conversion Units charged to production: Inventory in process, March 1 2,000 Received from materials storeroom 38,000 Total units accounted for by the Mixing Department 40,000 Units to be assigned costs: Inventory in process, March 1 (35% completed) 2,000 Started and completed in March 35,000 35,000 35,000 Transferred to Baking Department in March 37,000 Inventory in process, March 31 (80% completed) 3,000 Total units to be assigned costs 40,000 COSTS Costs Direct Materials Conversion Total Costs per equivalent unit: Total costs for March in Mixing Department $40,660 $40,635 Total equivalent units ÷ ÷ Cost per equivalent unit Costs assigned to production: Inventory in process, March 1 $2,300 $525 $2,825 Costs incurred in March 81,295 Total costs accounted for by the Mixing Department $84,120 Cost allocated to completed and partially completed units: Inventory in process, March 1-balance $2,825 To complete inventory in process, March 1 $0.00 $1,365 1,365 Cost of completed March 1 work in process $4,190 Started and completed in March $37,450 $36,750 74,200 Transferred to Baking Department in March Inventory in process, March 31 $3,210 $2,520 Total costs assigned by the Mixing Department February Cost Analysis 2. Determine the cost per unit of direct materials and for conversion for the month of February Cost Analysis for February - Mixing Department Amount Equivalent Units Cost per Unit Direct Materials in inventory in process, March 1 Conversion costs in inventory in process, March 1 Total cost per unit March Cost Analysis 3. Determine the cost per unit of direct materials and for conversion for the month of March using the completed data on the Cost of Production panel. Cost Analysis for March- Mixing Department Amount Equivalent Units Cost per Unit Costs for March: Direct Materials Costs for March: Conversion Total cost per unit Mixing Dept. Evaluation 4.In March, was the Mixing Department’s total cost per unit higher or lower than in February? For which component(s) was the cost per unit for March higher than in February? What is most probably your recommendation to Jonathan Groat given your computations? Journal 5. On March 31, using the data provided on the panels, journalize the entry to move the appropriate amount of cost from the Mixing Department to the Baking Department. Refer to the Chart of Accounts for exact wording of account titles. PAGE 15 JOURNAL ACCOUNTING EQUATION

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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Required:

Jonathan has noticed that his production manager has omitted some of the data on the Cost of Production panel. Determine the missing information. If there is no amount or an amount is zero, enter "0".*

On the February Cost Analysis panel, determine the cost per unit of direct materials and for conversion for the month of February using the completed data on the Cost of Production panel.*

On the March Cost Analysis panel, determine the cost per unit of direct materials and for conversion for the month of March using the completed data on the Cost of Production panel.*

After reviewing your work on the February Cost Analysis and March Cost Analysis panels, assist Jonathan Groat in evaluating the Mixing Department’s performance by answering the questions on the Mixing Dept. Evaluation panel.

On March 31, using the data provided on the panels, journalize the entry to move the appropriate amount of cost from the Mixing Department to the Baking Department. Refer to the Chart of Accounts for exact wording of account titles.

*Round your per-unit computations to the nearest cent, if required.

Chart of Accounts

CHART OF ACCOUNTS

Grainy Goodness Company

General Ledger

	ASSETS
110	Cash
112	Accounts Receivable
125	Notes Receivable
126	Interest Receivable
131	Materials
141	Work in Process-Mixing
142	Work in Process-Baking
143	Work in Process-Packaging
151	Factory Overhead-Mixing
152	Factory Overhead-Baking
153	Factory Overhead-Packaging
161	Finished Goods
171	Office Supplies
172	Prepaid Insurance
173	Prepaid Expenses
181	Land
191	Factory
192	Accumulated Depreciation-Factory

	LIABILITIES
210	Accounts Payable
215	Notes Payable
221	Utilities Payable
236	Interest Payable
251	Wages Payable

	EQUITY
310	Common Stock
311	Retained Earnings
312	Dividends
313	Income Summary

	REVENUE
410	Sales
610	Interest Revenue

	EXPENSES
510	Cost of Goods Sold
520	Wages Expense
529	Selling Expenses
531	Utilities Expense
532	Depreciation Expense-Factory
533	Insurance Expense
534	Office Supplies Expense
540	Administrative Expenses
590	Miscellaneous Expense
710	Interest Expense

Cost of Production

1. Jonathan has noticed that his production manager has omitted some of the data on the Cost of Production panel. Determine the missing information. If there is no amount or an amount is zero, enter "0". Round your per-unit computations to the nearest cent, if required.

GRAINY GOODNESS COMPANY
Cost of Production Report-Mixing Department
For the Month Ended March 31
UNITS	Whole Units	Equivalent Units
Direct Materials	Conversion
Units charged to production:
Inventory in process, March 1	2,000
Received from materials storeroom	38,000
Total units accounted for by the Mixing Department	40,000

Units to be assigned costs:
Inventory in process, March 1 (35% completed)	2,000
Started and completed in March	35,000	35,000	35,000
Transferred to Baking Department in March	37,000
Inventory in process, March 31 (80% completed)	3,000
Total units to be assigned costs	40,000


COSTS	Costs
Direct Materials	Conversion	Total
Costs per equivalent unit:
Total costs for March in Mixing Department	$40,660	$40,635
Total equivalent units	÷	÷
Cost per equivalent unit

Costs assigned to production:
Inventory in process, March 1	$2,300	$525	$2,825
Costs incurred in March			81,295
Total costs accounted for by the Mixing Department			$84,120

Cost allocated to completed and partially completed units:
Inventory in process, March 1-balance			$2,825
To complete inventory in process, March 1	$0.00	$1,365	1,365
Cost of completed March 1 work in process			$4,190
Started and completed in March	$37,450	$36,750	74,200
Transferred to Baking Department in March
Inventory in process, March 31	$3,210	$2,520
Total costs assigned by the Mixing Department

February Cost Analysis

2. Determine the cost per unit of direct materials and for conversion for the month of February

Cost Analysis for February - Mixing Department
	Amount	Equivalent Units	Cost per Unit
Direct Materials in inventory in process, March 1
Conversion costs in inventory in process, March 1
		Total cost per unit

March Cost Analysis

3. Determine the cost per unit of direct materials and for conversion for the month of March using the completed data on the Cost of Production panel.

Cost Analysis for March- Mixing Department
	Amount	Equivalent Units	Cost per Unit
Costs for March: Direct Materials
Costs for March: Conversion
		Total cost per unit

Mixing Dept. Evaluation

4.In March, was the Mixing Department’s total cost per unit higher or lower than in February?

For which component(s) was the cost per unit for March higher than in February?

What is most probably your recommendation to Jonathan Groat given your computations?

Journal

5. On March 31, using the data provided on the panels, journalize the entry to move the appropriate amount of cost from the Mixing Department to the Baking Department. Refer to the Chart of Accounts for exact wording of account titles.

PAGE 15

JOURNAL

ACCOUNTING EQUATION

	DATE	DESCRIPTION	POST. REF.	DEBIT	CREDIT	ASSETS	LIABILITIES	EQUITY
1
2

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