1 Cost per EUP DM 1900 Cascy Carpet manufactures broadloom c

1. Cost per EUP DM $19.00 Cascy Carpet manufactures broadloom carpct in seven processes: spinning, dycing plying, spooling, tufting, latexing, and shearing In the Dyeing Department, direct materials (dye) are added at the beginning of the process. Conversion costs are incurred evenly throughout the process. Information for July 2018 follows: UNITS Beginning Work-in-Process Inventory Transferred in from Spinning Department during July Completed during July Ending Work-in-Process Inventory (80% complete for conversion work) COSTS Beginning Work-in-Process Inventory (transferred in costs, $3,700; 10,100 materials costs, $1,450; conversion costs, $4,950) Transferred in from Spinning Department Materials costs added during July Conversion costs added during July (manufacturing wages, $8,050 53,472 manufacturing overhead allocated, $45,422) 75 rolls 590 rolls 550 rolls 15 rolls 21,570 11,185 Requirements 1. Prepare a production cost report for Casey\'s Dyeing Department for July. The company uses the weighted-average method 2. Journalize all transactions affecting Casey\'s Dyeing Department during July, includ- ing the entries that have already been posted. Assume labor costs are accrued and not yet paid

Solution

Units to account for: Whole Units Transferred in Direct Materials Conversion Beginning work in process 75 Transferred in 590 Total units to account for 665 Units accounted for: Completed and transferred out 550 550 550 550 Ending w-i-p 115 115 115 92 Total units accounted for 665 665 665 642 Costs Transferred in Direct Materials Conversion Total Costs Costs to account for: Beginning w-i-p 3700 1450 4950 10100 Costs added during period 21570 11185 53472 86227 Total Costs to Account for 25270 12635 58422 96327 ÷EUP 665 665 642 Cost per equivalent unit 38 19 91 Costs accounted for: Completed and transferred out* 20900 10450 50050 81400 Ending w-i-p** 4370 2185 8372 14927 Total costs accounted for 25270 12635 58422 96327 *(550 x 38; 550 x 19; 550 x 91) **(115 x 38; 115 x 19; 92 x 91) Journal Entry POST. REF. DATE ACCOUNTS DEBIT CREDIT Work in Process Inventory—Dyeing 21,570 Work in Process Inventory—Spinning 21,570 Work in Process Inventory—Dyeing 64,657 Materials Inventory 11,185 Manufacturing Wages 8,050 Manufacturing Overhead 45,422 Work in Process Inventory—Plying 81,400 Work in Process Inventory—Dyeing 81,400