Problem 6-15 Comprehensive Process Costing Problem [LO1, LO2, LO3, LO4, LO5]Fryerâ€™s Choice produces a specially blended vegetable oil widely used in restaurant deep fryers.The blending process creates a cooking oil that can be heated to a high temperature, but does notsmoke or smell. The oil is produced in two departments: Blending and Bottling. Raw materialsare introduced at various points in the Blending Department.The following incomplete Work in Process T-account is available for the BlendingDepartment for March:Work in Processâ€”BlendingMarch 1 balance (20,000 litres;materials 100% complete;labourand overhead 90% complete)March costs added:Oils (390,000 litres)Direct labourOverheadMarch 31 inventory (40,000litres;materials 75% complete,labour andoverhead 25% complete)$38,000Completed and transferred toBottling ( ? litres)$???495,00072,000181,000$???The March 1 beginning inventory in the Blending Department consists of the following costelements: raw materials, $25,000; direct labour, $4,000; and overhead, $9,000.Costs incurred during March in the Bottling Department were materials used, $115,000;direct labour, $18,000; and overhead cost applied to production, $42,000. The company uses theweighted-average method in its process costing.Required:1. Prepare journal entries to record the cost incurred in both the Blending Department and theBottling Department during March. Key your entries to the items (a) through (f) below:a. Raw materials were issued for use in productionb. Direct labour costs were incurred.c. Manufacturing overhead costs for the entire factory were incurred: $225,000. (Hint: CreditAccounts Payable.)d. Manufacturing overhead cost was applied to production using a predetermined overhead rate.e. Units that were complete with respect to processing in the Bottling Department weretransferred to finished goods: $950,000.f. Completed units were sold on account: $1,500,000. The cost of goods sold was $890,000.2. Post the journal entries from requirement 1 above to T-accounts. The following accountbalances existed at the beginning of March. (Note: The beginning balance in the BlendingDepartmentâ€™s Work in Process account is given above.)RawmaterialsWork inProcessâ€”BottlingDepartmentFinishedGoods$681,000$65,000$20,000After posting the entries to the T-accounts, find the ending balance in the inventory accounts andthe manufacturing overhead accounts.3. Prepare a production report for the Blending Department for March. (Round “Cost perequivalent unit” answers to 2 decimal places.)Prepare the journal entry to record the transfer of finished goods from the Blending4. Department to the Bottling Department and post to the appropriate T-accounts prepared inrequirement 2 above.3.Problem 6-13 Analysis of Work in Process T-Account-Weighted-Average Method [LO1, LO2,LO3, LO4, LO5]Brady Products manufactures a silicone paste wax that goes through three processingdepartmentsâ€”Cracking, Blending, and Packing. All of the raw materials are introduced at thestart of work in the Cracking Department. The Work in Process T-account for the CrackingDepartment for May follows:Work in Processâ€”Cracking DepartmentInventory, May 1 (40,400kilograms,conversion 4/5 complete)103,828May costs added:Raw materials (343,000kilograms)Conversion costsInventory, May 31 (59,100647,874321,682?Completed and transferred toBlending ( ? kilograms)?kilograms,conversion 2/3 complete)The May 1 work in process inventory consists of $69,084 in materials cost and $34,744 inconversion cost. The company uses the weighted-average method.Required:1. Determine the equivalent units of production for May.2. Determine the costs per equivalent unit for May. (Round your answers to 2 decimalplaces.)3. Determine the cost of the units completed and transferred to Blending during May and thecost of ending work in process inventory. (Round intermediate calculations to 2 decimalplaces.)Problem 6-11 Equivalent Units; Assigning Costs-Weighted-Average Method [LO2, LO3, LO4,LO5]The WireOne Company manufactures high-quality coated electrical wire in two departments,Weaving and Coating. Materials are introduced at various points during work in the WeavingDepartment. After the weaving is completed, the materials are transferred into the CoatingDepartment, where specialty plastic coating is applied.Selected data relating to the Weaving Department during May are given below:Production data:Kilograms in process, May 1(materials 100%complete; conversion 80% complete)Kilograms started into production during MayKilograms completed and transferred to CoatingKilograms in process, May 31(materials 65%complete; conversion 30% complete)Cost data:Work in process inventory, May 1:Materials costConversion costCost added during May:Materials costConversion cost103,500380,000?70,000$ 69,345$117,990$609,975$394,720The company uses the weighted-average method.Required:1. Compute the equivalent units of production.2. Compute the costs per equivalent unit for May. (Round your answers to 2 decimal places.)3. Determine the cost of ending work in process inventory and of the units transferred to theCoating Department. (Round intermediate calculations to 2 decimal places, and finalanswers to the nearest whole dollar.)4. Prepare a cost reconciliation between the costs determined in (3) above and the cost ofbeginning inventory and costs added during the period. (Round intermediate calculationsto 2 decimal places, and final answers to the nearest whole dollar.)
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