The costs per equivalent unit of direct materials and conversion in the Filling Department of Savannah Lotion Company are $0.35 and $0.08

The costs per equivalent unit of direct materials and conversion in the Filling Department of Savannah Lotion Company are $0.35 and $0.08, respectively. The equivalent units to be assigned costs are as follows:

                                                                      Equivalent Units
                                                          Direct Materials | Conversion
Inventory in process, beginning of period                0 |    1,200
Started and completed during the period         37,400 |   37,400
Transferred out of Filling (completed)            37,400 |   38,600
Inventory in process, end of period                      600 |      150
Total units to be assigned costs                       38,000 |   38,750


The beginning work in process inventory had a cost of $1,200. Determine the cost of completed and transferred-out production and the ending work in process inventory.


Answer:


Direct 
Materials Conversion Total 
Costs Costs Costs 
Inventoryin process, balance……………………………    
Inventory in process, beginning of period…………… 0 + 1,200 × $0.08   96 
Cost of completed beginning work in process………    $ 1,296 
Started and completed during the period……………… 37,400 × $0.35 + 37,400 × $0.08   16,082 
Transferred out of Filling (completed)…………………    $17,378 
Inventory in process, end of period…………………… 600 × $0.35 + 150 × $0.08   222 
Total costs assigned by the Filling Dept. ……………    $17,600 
Completed and transferred-out production………… $17,378    
Inventoryin process, ending…………………………… $222   

The cost of materials transferred into the Filling Department of Savannah Lotion Company is $13,300, including $5,000

The cost of materials transferred into the Filling Department of Savannah Lotion Company is $13,300, including $5,000 from the Blending Department and $8,300 from the materials storeroom. The conversion cost for the period in the Filling Department is $3,100 ($1,100 factory overhead applied and $2,000 direct labor). The total cost transferred to Finished Goods for the period was $17,378. The Filling Department had a beginning inventory of $1,200.

a. Journalize (1) the cost of transferred-in materials, (2) conversion costs, and (3) the costs transferred out to Finished Goods.

b. Determine the balance of Work in Process—Filling at the end of the period.


Answer:












a. 
Work in Process—Filling 3,100  
Factory Overhead—Filling  1,100 
Wages Payable  2,000 
Finished Goods 17,378  
Work in Process—Filling  17,378 
b. $222  ($1,200 + $13,300 + $3,100 – $17,378)