Pottle Ice Cream uses a mixing department and a freezing department to produce its ice cream....

90.2K

Verified Solution

Question

Accounting

Pottle Ice Cream uses a mixing department and a freezingdepartment to produce its ice cream. Its process costing system inthe mixing department has two direct materials cost categories (icecream mix and flavourings) and one conversion cost pool.
The following data pertain to the mixing department for April2018:
Work-in-process, 1April                                                                   0
Started inApril                                                                         10000 litres
Completed and transferred tofreezing                                          8500 litres
Costs:
Ice creammix                                                                        $27 000
Flavourings                                                                             $4080
Conversioncosts                                                                    $53 700
The ice cream mix is introduced at the start of operations inthe mixing department, and the flavourings are added when theproduct is 40% completed in the mixing department. Conversion costsare added evenly during the process. The ending work-in-process inthe mixing department is 30% complete.
Required
Prepare and explain the journal entries for the transfer ofgoods to the freezing department and complete the WIP ledgeraccount for April 2018
Give three industries that use process-costing system

Answer & Explanation Solved by verified expert

4.1 Ratings (512 Votes)

1 Account titles Debit Credit Finished goods inventory Mixing department 78030 Work in process inventory freezing department 78030 2 Work in process mixing department Direct materials 4050 Conversion costs 2700 Balance 6750 Units to account for Equivalent units WIP beginning inventory 0 Materials See Answer

Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:

Unlimited Question Access with detailed Answers
Zin AI - 3 Million Words
10 Dall-E 3 Images
20 Plot Generations
Conversation with Dialogue Memory
No Ads, Ever!
Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!

Become a Member