Chap004 (dragged) 9 - 3 9 , 5 * $ 3 9 , 5 = $ 4 2 , o f d i...

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McGraw-Hill/Irwin ¤ 2005 The McGraw-Hill Companies, Inc. 4 - 10 Solutions Manual EXERCISE 4-25 (CONTINUED) 2. The product cost for each basketball is computed as follows: P r o f e s s i o n a l S c h o l a s t i c Direct material:. .................................................................... Batch P25 ($42,000 ÷ 2,000). .......................................... $21.00 -0- Batch S33 ($45,000 ÷ 4,000). .......................................... -0- $11.25 Conversion: Preparation Department . ............................. 7 . 5 0 7 . 5 0 Conversion: Finishing Department . ................................. 6 . 0 0 6 . 0 0 *Conversion: Packaging Department . ............................... .50 - 0 - Total product cost. ............................................................. $35.00 $ 2 4 . 7 5 *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: W o r k - i n - P r o c e s s I n v e n t o r y : P r e p a r a t i o n D e p a r t m e n t . . . . . . . . . . 3 9 , 5 0 0 * R a w - M a t e r i a l Inventory. ..................................................
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Unformatted text preview: 3 9 , 5 * $ 3 9 , 5 = $ 4 2 , o f d i r e c t m a t e r i a l for batch P25 $2,500 of packaging material W o r k-i n-P r o c e s s I n v e n t o r y : P r e p a r a t i o n D e p a r t m e n t . . . . . . . . . . 4 5 , * R a w-M a t e r i a l Inventory. .................................................. 4 5 , * D i r e c t-m a t e r i a l c o s t f o r b a t c h S 3 3 . W o r k-i n-P r o c e s s I n v e n t o r y : P r e p a r a t i o n D e p a r t m e n t . . . . . . . . . . 4 5 , * Applied Conversion Costs. ............................................ 45,000 *$45,000 = 6,000 units u $7.50 per unit W o r k-i n-P r o c e s s I n v e n t o r y : F i nishing Department . ............. 129,500* Work-in-Process Inventory: Preparation Department 129,500 * $ 1 2 9 , 5 = $ 3 9 , 5 + $ 4 5 , + $ 4 5 ,...
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