Zoo Company manufacturers a product that passes through two departments

| March 30, 2017

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

Production Report
1. Physical Units
Beginning Inventory
Number of units–started
Total Work
2. Equivalent Units by Cost Type
Transferred-in

Direct Material

Conversion

Transferred-in

Direct Material

Conversion

Transferred-in

Direct Material

Conversion

Beginning Inv. -T.O.
Started & Finished – T.O.
Ending Inventory
A Current Period
Previous Period Work
B Total Work
3. Costs

Beginning Inventory
C Current Period
D Total

4. Cost per Equivalent Unit

FIFO (C/A)
Weight-Average (D/B)

5. Disposition of Costs
FIFO Transferred Out:
Beginning Inv. -T.O.
Started & Finished – T.O.
E.I. Costs Remaining
Weighted Average Transferred Out:
Units Completed
E.I. Remaining

Get a 30 % discount on an order above $ 50
Use the following coupon code:
COCONUT
Order your essay today and save 30% with the discount code: COCONUTOrder Now
Positive SSL