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

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
icon
Related questions
Question
100%

Could you check the working and help with the journal entry portion.

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
Text Fill & Sign More tools
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 Text Fill & Sign More tools
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 4 steps with 4 images

Blurred answer
Follow-up Questions
Read through expert solutions to related follow-up questions below.
Follow-up Question

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?

Solution
Bartleby Expert
SEE SOLUTION
Knowledge Booster
Cost classification
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education