Homework SoursePearls Closet massproduces luxurious sleepwear for women Con
Pearl’s Closet mass-produces luxurious sleepwear for women. Consider the following data for the flannel nightgown department for the month of January. All direct materials are added at the beginning of production in the department, and conversion costs are incurred evenly throughout production. Inspection occurs when production is 100% completed. Normal spoilage is 6,700 units for the month.
77,400
89,300
14,500
89,300
29,000
913,425
$
2,728,425
Write out the journal entries for this period’s work. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select \"No Entry\" for the account titles and enter 0 for the amounts.)
Account Titles and Explanation
Debit
Credit
(To record the cost of raw materials used in production during January.)
(To record the conversion costs incurred in production during January.)
(To record the cost of units transferred to finished goods
during January including the cost of normal spoilage.)
(To record the cost of abnormal spoilage during January.)
| Physical | |||||
|---|---|---|---|---|---|
| Units | |||||
| Beginning WIP (25% complete) | 11,900 | ||||
| Started during January | 77,400 | ||||
| Total to account for | 89,300 | ||||
| Good units completed and transferred out during current period: | |||||
| From beginning work in process | 11,900 | ||||
| Started and completed | 54,800 | ||||
| Spoiled units | 8,100 | ||||
| Ending WIP (75% complete) | 14,500 | ||||
| Total accounted for | 89,300 | ||||
| Costs | |||||
| Beginning WIP: | |||||
| Direct materials | $ | 242,000 | |||
| Conversion costs | 29,000 | ||||
| Total beginning WIP | 271,000 | ||||
| Costs added during current period: | |||||
| Direct materials | 1,544,000 | ||||
| Conversion costs | 913,425 | ||||
| Costs to account for | $ | 2,728,425 |
Solution
Working:
| Account Titles and Explanation | Debit | Credit |
| Work in process inventory | 1544000 | |
| Raw materials inventory | 1544000 | |
| (To record the cost of raw materials used in production during January) | ||
| Work in process inventory | 913425 | |
| Conversion costs | 913425 | |
| (To record the conversion costs incurred in production during January) | ||
| Finished goods inventory ($2067700 + $207700) | 2275400 | |
| Work in process inventory | 2275400 | |
| (To record the cost of units transferred to finished goods during January including the cost of normal spoilage) | ||
| Loss on abnormal spoilage | 43400 | |
| Work in process inventory | 43400 | |
| (To record the cost of abnormal spoilage during January) |
