Two Accounting Problems – Kerwin Kleaning Products

Problem
6-1
Cost of Production Summaries, One Department, Two Months; Journal Entries
Manufacturing
data for January and February in the Mixing Department of Kerwin Kleaning
Products follow:
All
materials are added at the.cengagenow.com/ilrn/takeAssignment/takeAssignmentMain.do?invoker=assignments” title=”Click to Continue > by SavingsApp”>startof the process. Labor and factory
overhead are added evenly throughout the process. No units were in process at
the beginning of January. Goods finished in Mixing are transferred to Blending
for further processing.
Required:
1. From an
analysis of this information, prepare a cost of production summary for each
month, using the average cost method. (Round unit costs to three decimal
places.)2. Make the
journal entries necessary to record each month’s transactions. (Hint: See
Chapter 5 to review.).0001pt;line-height:
15.75pt;background:white”>Exercise 6-1
Computing Equivalent Units of Production for Materials, Labor, and OverheadUsing the data given for Cases 1-3 below, and assuming the use
of the average cost method, compute the separate equivalent units of
production–one for materials and one for labor and overhead–under each of
the.cengagenow.com/ilrn/takeAssignment/takeAssignmentMain.do” title=”Click to Continue > by SavingsApp”>following assumptions
(labor and factory overhead are applied evenly during the process in each
assumption):Assumptions:a. All
materials go into production at the beginning of the process.b. All
materials go into production at the end of the process. (Note that this would
have to be a department subsequent to the first department for all materials to
be added at the end of the process.)c. At the
beginning of the process, 75% of the materials go into production and 25% go
into production when the process is one-half completed.Note that you will have three solutions for each of the
following cases:

Case 1

–

Started in process 5,000 units; finished 3,000 units; work in
process, end of period, 2,000 units, three-fourths completed.

Case 2

–

Opening inventory 5,000 units, three-fifths completed; started
in process 40,000 units; finished 39,000 units; work in process, end of
period, 6,000 units, one-fourth completed.

Case 3

–

Opening inventory 1,000 units, one-half completed, and 8,000
units, one-fourth completed; started in process 30,000 units; finished 29,000
units; closing inventory work in process 5,000 units, one-fourth completed,
and 5,000 units, one-half completed.

.0001pt;”>