| This is a comprehensive problem all contained on this spreadsheet tab. |
| Process Job Costing and Equivalent Units of Production |
| Bay Manufacturing produces paint. The company has two processes: mixing and packaging. |
| The ingredients for the paint are mixed in large batches and then transferred to the packaging |
| department, where one-gallon cans are filled, capped, labeled, and boxed. |
| There was no work in process on February 1. The materials are all brought to the packaging job up front |
| and charged to the job. Nothing is transferred to finished goods until the entire job is complete. The |
| materials costs include the packaging, material, and the cost transferred from the mixing department. |
| On February 2, 15,000 gallons (job 2-1) were transferred into the packaging department from the |
| mixing department and completed on February 19. |
| The costs incurred to complete job 2-1 in the packaging department are as follows: |
| Materials | 56,250 |
| Labor | 10,250 |
| Overhead (applied based on direct labor hours) | 7,500 |
| On February 20, another 20,000 gallons (job 2-2) were transferred into the packaging department. |
| Job 2-2 was 50% complete as to labor at the end of the month. |
| The costs incurred (unit cost unchanged from job 2-1) to complete job 2-2 in the packaging |
| department are as follows: |
| Materials | 75,000 |
| Labor | 12,500 |
| Overhead (applied based on direct labor hours) | 10,000 |
| INSTRUCTIONS: |
| 1. Compute the physical units of production. |
| 2. Compute the cost per unit to complete packaging for labor, materials, overhead, and total. |
| 3. Compute equivalent units and cost of work in process as of the end of February. |
| 4. Record journal entries for: |
| a. the movement of materials from materials inventory to each job |
| b. the allocation of payroll to each job |
| c. the application of overhead to each job |
| d. the movement of work in process to finished goods |
Ernesto Sabato
week_4_homework_problems-2_1.xlsx
