B-20.06 Problem

B-20.06 Problem - Sanding Dept. The beginning balance of...

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B-20.06 Vasquez Systems produces high-quality table tops. Each table top is produced from a single large tree in a 3-step process consisting of milling, sanding, and cutting. All raw material is introduced at the start of the milling process. The company uses a process costing system for all costs incurred throughout the production cycle. The following data were extracted from each department's cost of production report prepared for April: Milling Dept. The beginning balance of work in process was $275,000. During April, additional costs of $690,000 were incurred. The additional costs were attributable to direct materials (70%), direct labor (20%), and factory overhead (10%). The ending balance of work in process was $160,000.
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Unformatted text preview: Sanding Dept. The beginning balance of work in process was $175,000. During April, additional costs of $400,000 were incurred. The additional costs were attributable to direct labor (70%) and factory overhead (30%). The ending balance of work in process was $290,000. Cutting Dept. The beginning balance of work in process was $365,000. During April, additional costs of $150,000 were incurred. The additional costs were attributable to direct labor (60%) and factory overhead (40%). The ending balance of work in process was $210,000. Prepare summary journal entries to reflect costs incurred by each department during April, as well as the transfer of costs between departments and into finished goods....
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This note was uploaded on 02/29/2012 for the course ACCOUNTING 101 taught by Professor Hudack during the Spring '11 term at FIU.

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