Two Departments, Journal Entries with Supporting Calculations-Weighted Average Method Patterson Laboratories, Inc., produces one of its products in two successive departments. All materials are added at the beginning of the process in Department 1; no materials are used in Department 2. Conversion costs are incurred evenly in both depart Patterson uses the weighted average method for process costing. January 1, 2019, inventory account balances are as follows: Materials inventory S30.000 Work in process-Department 1 (3.000 units, 30% complete) Direct material 4,560 Conversion costs 10,640 Work in process-Department 2 (3.550 units, 4O% complete) Finished goods inventory (2.000 units $16) 43,439 32.000 During January, the following transactions occurred: 1. Purchased material on account, $90,000. 2. Placed $84,000 of material into process in Department 1. This $84,000 represents 24,000 units of materials. 3. Distributed total payroll costs: $108,116 of direct labor to Department 1, $62,700 of direct labor to Department 2, and $51,000 of indirect labor to Manufacturing Overhead. 4. Incurred other actual manufacturing overhead costs, $81,000. (Credit Other Accounts.) 5. Applied overhead to the two processing departments: $88,000 to Department 1 and $43,900 to Department 2. 6. Transferred 25,000 completed units from Department 1 to Department 2. The 2,000 units remaining in Department 1 were 20% completed with respect to conversion costs. 7. Transferred 26,000 completed units from Department 2 to finished goods inventory. The 2,550 units remaining in Department 2 were 70% completed with respect to conversion costs. 8. Sold 20,000 units on account at $27 per unit. Patterson uses weighted average inventory costing procedures
Two Departments, Journal Entries with Supporting Calculations-Weighted Average Method Patterson Laboratories, Inc., produces one of its products in two successive departments. All materials are added at the beginning of the process in Department 1; no materials are used in Department 2. Conversion costs are incurred evenly in both depart Patterson uses the weighted average method for process costing. January 1, 2019, inventory account balances are as follows: Materials inventory S30.000 Work in process-Department 1 (3.000 units, 30% complete) Direct material 4,560 Conversion costs 10,640 Work in process-Department 2 (3.550 units, 4O% complete) Finished goods inventory (2.000 units $16) 43,439 32.000 During January, the following transactions occurred: 1. Purchased material on account, $90,000. 2. Placed $84,000 of material into process in Department 1. This $84,000 represents 24,000 units of materials. 3. Distributed total payroll costs: $108,116 of direct labor to Department 1, $62,700 of direct labor to Department 2, and $51,000 of indirect labor to Manufacturing Overhead. 4. Incurred other actual manufacturing overhead costs, $81,000. (Credit Other Accounts.) 5. Applied overhead to the two processing departments: $88,000 to Department 1 and $43,900 to Department 2. 6. Transferred 25,000 completed units from Department 1 to Department 2. The 2,000 units remaining in Department 1 were 20% completed with respect to conversion costs. 7. Transferred 26,000 completed units from Department 2 to finished goods inventory. The 2,550 units remaining in Department 2 were 70% completed with respect to conversion costs. 8. Sold 20,000 units on account at $27 per unit. Patterson uses weighted average inventory costing procedures
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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How how do you prepare the product cost report with the supporting calculations department 2. Round average cost per equivalent unit to two decimal places. He was around it answers for subsequent calculations. Round other answers to the nearest whole number.
Transcribed Image Text:Two Departments, Journal Entries with Supporting Calculations–Weighted Average Method
Patterson Laboratories, Inc., produces one of its products in two successive departments. All materials are added at the beginning of the process in Department 1; no materials are used in Department 2. Conversion costs are incurred evenly in both departments
Patterson uses the weighted average method for process costing. January 1, 2019, inventory account balances are as follows:
Materials inventory
$30,000
Work in process-Department 1 (3,000 units, 30% complete)
Direct material
4,560
Conversion costs
10,640
Work in process-Department 2 (3,550 units, 40% complete) 43,439
Finished goods inventory (2,000 units @ $16)
32,000
During January, the following transactions occurred:
1. Purchased material on account, $90,000.
2. Placed $84,000 of material into process in Department 1. This $84,000 represents 24,000 units of
materials.
3. Distributed total payroll costs: $108,116 of direct labor to Department 1, $62,700 of direct labor
to Department 2, and $51,000 of indirect labor to Manufacturing Overhead.
4. Incurred other actual manufacturing overhead costs, $81,000. (Credit Other Accounts.)
5. Applied overhead to the two processing departments: $88,000 to Department 1 and $43,900 to
Department 2.
6. Transferred 25,000 completed units from Department 1 to Department 2. The 2,000 units remaining
in Department 1 were 20% completed with respect to conversion costs.
7. Transferred 26,000 completed units from Department 2 to finished goods inventory. The 2,550
units remaining in Department 2 were 70% completed with respect to conversion costs.
8. Sold 20,000 units on account at $27 per unit. Patterson uses weighted average inventory costing procedures
for the finished goods inventory.
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