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QUESTION
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. 1. 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.
2. Prepare journal entries for April transfers from the printing department to the binding department and from the binding department to FinisheUse this template.
Attachment:- Template.rar
Verified Expert
This assignment requires summarizing and allocating production department costs and assigning them to the total units completed during the month and to the ending inventory using the weighted average method of process costing. In addition, it also requires preparing the journal entries for the relevant transfers.
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