Accounting Chapter 6 Problem 1 – Zoo Company

| September 6, 2016

Question
Problem 1: Production Report

Zoo Company manufacturers a product that passes through two departments: Assembly and Finishing. In the Finishing Department, materials are added at the end of the process. Conversion costs are incurred uniformly throughout the process.

physical unite

transferred–in direct materials conversion costs
Work in process, 12/1(a) 10,000 $11,650 -0- $12,750
Transferred–in 60,000
Completed and transferred out during december 58,000
work in process, 12/31(b) 12,000
cost added during december $69,600 $35,200 $81,600

a. Degree of Completion: TI 100%, DM 0%, CC 30%

b. Degree of Completion: TI 100%, DM 0%, CC 30%

Required:

a).Prepare a production report

b). Prepare the journal entries that record the costs of the units transferred-out for both FIFO and weighted average.

Date

Account Titles and Explanation

Ref

Debit

Credit

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