QUESTION 1.
Publishers, Inc., has two departments: printing and binding. Each department has one direct-cost category (direct materials) and one indirect-cost category (conversion costs). This problem focuses on the binding department. Books that have undergone the printing process are immediately transferred to the binding department. Direct material is added when the binding process is 70% complete. Conversion costs are added evenly during binding operations. When those operations are done, the books are immediately transferred to Finished Goods. Publishers, Inc., uses the weighted-average method of process costing. The following is a summary of the April 2014 operations of the binding department.
⦁ Summarize total binding department costs for April 2014, and assign these costs to units completed (and transferred out) and to units in ending work in process.
⦁ Prepare journal entries for April transfers from the printing department to the binding department and from the binding department to FinisheUse this template
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Module 2 Homework Assignment Template
Requirement 1
Binding Department Equivalent Units
Flow of Production Physical Units Transferred-in Costs Direct Materials Conversion Costs
Work in process, beginning (given)
Transferred-in during current period (given)
To account for
Completed and transferred out during current period:
Work in process, endinga (given)
Accounted for
Equivalent units of work done to date
Total Production Costs Transferred-in Costs Direct Materials Conversion Costs
Work in process, beginning (given)
Costs added in current period (given)
Total costs to account for
Costs incurred to date
Divide by equivalent units of work done to date
Cost per equivalent unit of work done to date
Assignment of costs:
Completed and transferred out (3,240 units)
Work in process, ending (900 units):
Total costs accounted for
Requirement 2
Journal entries: Debit Credit