Accounting Unit 3

Use the Production Cost Flows Template linked in the resources to complete the following in your Financial and Managerial Accounting textbook:

· Problem 16-1B, page 757.

Problem 16-1B Production cost flow and measurement; journal entries P1 P2 P3 P4

Dream Toys Company manufactures video game consoles and accounts for product costs using process costing. The company uses a single processing department. The following information is available ­regarding its June inventories.

Required

1. Compute the cost of (a) products transferred from production to finished goods and (b) goods sold. Check  (1b) Cost of goods sold, $600,500

2. Prepare journal entries dated June 30 to record the following production activities during June: (a) raw materials purchases, (b) direct materials usage, (c) indirect materials usage, (d) direct labor costs, (e) indirect labor costs, (f) payment of factory payroll, (g) other overhead costs, (h) overhead applied, (i) goods transferred from production to finished goods, and (j) sale of finished goods.