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Samantha's Office Supplies manufactures desk organizers in its Processing Department. Direct materials are included at the inception of the production cycle and must be bundled in single kits for each unit. Conversion costs are incurred evenly throughout the production cycle. Inspection takes place as units are completed. After inspection, some units are spoiled due to undetectable material defects. Normal spoiled units generally constitute 4% of the good units. Data provided for February 2020 are as follows: WIP, beginning inventory 2/1/2020 51,000 units Direct materials (100% complete) Conversion costs (60% complete) Started during February 170,500 units Completed and transferred out 180,100 units WIP, ending inventory 2/28/2020 26,600 units Direct materials (100% complete) Conversion costs (25% complete) Costs: WIP, beginning inventory: Direct materials $280,300 Conversion costs 80,900 Direct materials added 408,200 Conversion costs added 264,200 Write the journal entry that correctly represents the transfer of finished goods during February to the inventory using the FIFO method of process costing. (Round any cost per unit calculations to the nearest cent.)

Samantha's Office Supplies manufactures desk organizers in its Processing Department. Direct materials are included at the inception of the production cycle and must be bundled in single kits for each unit. Conversion costs are incurred evenly throughout the production cycle. Inspection takes place as units are completed. After inspection, some units are spoiled due to undetectable material defects. Normal spoiled units generally constitute 4% of the good units. Data provided for February 2020 are as follows: WIP, beginning inventory 2/1/2020 51,000 units Direct materials (100% complete) Conversion costs (60% complete) Started during February 170,500 units Completed and transferred out 180,100 units WIP, ending inventory 2/28/2020 26,600 units Direct materials (100% complete) Conversion costs (25% complete) Costs: WIP, beginning inventory: Direct materials $280,300 Conversion costs 80,900 Direct materials added 408,200 Conversion costs added 264,200 Write the journal entry that correctly represents the transfer of finished goods during February to the inventory using the FIFO method of process costing. (Round any cost per unit calculations to the nearest cent.)

Managerial Accounting
Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter3: Process Cost Systems
Section: Chapter Questions
Problem 1MAD: Dura-Conduit Corporation manufactures plastic conduit that is used in the cable industry. A conduit...
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Samantha's Office Supplies manufactures desk organizers in its Processing Department. Direct materials are included at the inception of the production cycle and must be bundled in single kits for each unit. Conversion costs are incurred evenly throughout the production cycle. Inspection takes place as units are completed. After inspection, some units are spoiled due to undetectable material defects. Normal spoiled units generally constitute 4% of the good units. Data provided for February 2020 are as follows:

WIP, beginning inventory 2/1/2020 51,000 units

Direct materials (100% complete)

Conversion costs (60% complete)

Started during February 170,500 units

Completed and transferred out 180,100 units

WIP, ending inventory 2/28/2020 26,600 units

Direct materials (100% complete)

Conversion costs (25% complete)

Costs:

WIP, beginning inventory:

Direct materials $280,300

Conversion costs 80,900

Direct materials added 408,200

Conversion costs added 264,200

Write the journal entry that correctly represents the transfer of finished goods during February to the inventory using the FIFO method of process costing. (Round any cost per unit calculations to the nearest cent.)
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