ANSWERS_Acct 611 Ch 4 Spring 2011

ANSWERS_Acct 611 Ch 4 Spring 2011 - EXERCISE 4-24...

Info iconThis preview shows pages 1–4. Sign up to view the full content.

View Full Document Right Arrow Icon
EXERCISE 4-24 (CONTINUED) 2.The product cost for each basketball is computed as follows: Profession al Schola stic Direct material:. ....................................... Batch P25 ($42,000 ÷ 2,000). ................. $21.00 -0- Batch S33 ($45,000 ÷ 4,000). ................. -0- $11.25 Conversion: Preparation Department. ....... 7.50 7.50 Conversion: Finishing Department. ........... 6.00 6.00 *Conversion: Packaging Department. ........ .50 -0- Total product cost. ................................... $35.00 $24.75 *The two production departments each worked on a total of 6,000 balls, but the Packaging Department handled only the 2,000 professional balls. 3. Journal entries: Work-in-Process Inventory: Preparation Department. ................................................ 39,500* Raw-Material Inventory. ........................ 39,500 *$39,500 = $42,000 of direct material for batch P25 – $2,500 of packaging material Work-in-Process Inventory: Preparation Department. ................................................ 45,000* Raw-Material Inventory. ........................ 45,000 *Direct-material cost for batch S33. Work-in-Process Inventory: Preparation Department. ................................................ 45,000* Applied Conversion Costs. ..................... 45,000 *$45,000 = 6,000 units × $7.50 per unit Work-in-Process Inventory: Finishing Department. ................................................ 129,500 *
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Work-in-Process Inventory: Preparation Department 129,500 *$129,500 = $39,500 + $45,000 + $45,000
Background image of page 2
EXERCISE 4-24 (CONTINUED) Work-in-Process Inventory: Finishing Department. ................................................ 36,000* Applied Conversion Costs. ..................... 36,000 *$36,000 = 6,000 units × $6.00 per unit Work-in-Process Inventory: Packaging Department. ................................................ 66,500*
Background image of page 3

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Image of page 4
This is the end of the preview. Sign up to access the rest of the document.

This document was uploaded on 02/15/2011.

Page1 / 9

ANSWERS_Acct 611 Ch 4 Spring 2011 - EXERCISE 4-24...

This preview shows document pages 1 - 4. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online