|
Nature’s Way, Inc., keeps one of its production facilities busy making a perfume called Essence de la Vache. The perfume goes through two processing departments: Blending and Bottling. |
|
The following incomplete Work in Process account is provided for the Blending Department for March: Don't use plagiarized sources. Get Your Custom Essay on
managerial accounting 424943
Get an essay WRITTEN FOR YOU, Plagiarism free, and by an EXPERT! Just from $10/Page
|
| Work in ProcessAf?cAc‚¬”Blending |
|
|
|
|||
| March 1 balance | 34,100 | Completed and transferred to Bottling (760,000 ounces) |
? | |
| Materials | 141,600 | |||
| Direct labor | 67,200 | |||
| Overhead | 487,000 | |||
|
|
|
|||
| March 31 balance | ? | |||
|
|
||||
|
|
|
The $34,100 beginning inventory in the Blending Department consisted of the following elements: materials, $8,500; direct labor, $4,400; and overhead applied, $21,200. |
|
Costs incurred during March in the Bottling Department were: materials used, $45,000; direct labor, $16,600; and overhead cost applied to production, $111,000. |
| Required: |
| 1. |
Prepare journal entries to record the costs incurred in both the Blending Department and Bottling Department during March. (Omit the “$” sign in your response.) |
| a. | Raw materials were issued for use in production. |
| b. | Direct labor costs were incurred. |
| c. |
Manufacturing overhead costs for the entire factory were incurred, $696,000. (Credit Accounts Payable and use a single Manufacturing Overhead control account for the entire factory.) |
| d. | Manufacturing overhead was applied to production using a predetermined overhead rate. |
| e. |
Units that were complete with respect to processing in the Blending Department were transferred to the Bottling Department, $662,000. |
| f. |
Units that were complete with respect to processing in the Bottling Department were transferred to Finished Goods, $790,000. |
| g. | Completed units were sold on account for $1,430,000. The cost of goods sold was $630,000. |
Delivering a high-quality product at a reasonable price is not enough anymore.
That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.
You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.
Each paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.
Thanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.
