Please see the attached file (P4) for the problem, for the solution, please use the attached Excel document (CH_4_26A).
P4-26A computing equivalent units for a second department with beginning inventory; preparing a production cost report and recording transactions on the basis of the report's information - weighed-average method.
Casey Carpet manufactures broadloom carpet in seven processes: spinning, dyeing, plying, Spoling, Tuffing, 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. Casey uses weighted-average process costing. Information for March 2011 follows:
Beginning work in process inventory, 40% complete as to conversion work 75 rolls
Transferred-in from spinning department during March 560rolls
Completed during March 500 rolls
Ending work in process (80% complete as to conversion work) 135 rolls
Beginning work in process (transferred-in cost, $1,852
Material cost, $3,075 conversion costs, $2,212 $7,139
Transferred-in from spinning department during March 12,880
Materials costs added during March 22,960
Conversion costs added during march (manufacturing wages,
$8,445; manufacturing overhead, $45,887) 54,332
1. Prepare a time line for Casey's Dyeing department.
2. Use the time line to help you compute the equivalent units, cost per equivalent unit, and total costs to account for in Casey's dyeing department for March using the weighted-average method.
3. Prepare the march production cost report for Casey's dyeing department
4. Journalize all transactions affecting Casey's dyeing department during March, including the entries that have already been posted.
This solution provides a complete computation of the given accounting problems in Excel format.