Resutek Corp's accountant prepared the following product cost report for the Mixing Department, the first and only department of its manufacturing process, for the month of January:
a. Prepare the journal entry to record the raw materials used in production during January.
b. Prepare the journal entry(ies) related to conversion costs incurred during January, assuming that 50% is direct labor and 50% is indirect labor.
c. Prepare the journal entry to transfer product to finished goods inventory at the end of January.
d. Prepare the journal entry to record sales and cost of goods sold assuming the entire completed inventory is sold immediately for $300,000.

Question

Resutek Corp's accountant prepared the following product cost report for the Mixing Department, the first and only department of its manufacturing process, for the month of January:
  a. Prepare the journal entry to record the raw materials used in production during January.
b. Prepare the journal entry(ies) related to conversion costs incurred during January, assuming that 50% is direct labor and 50% is indirect labor.
c. Prepare the journal entry to transfer product to finished goods inventory at the end of January.
d. Prepare the journal entry to record sales and cost of goods sold assuming the entire completed inventory is sold immediately for $300,000.

Quizplus · Accepted Answer

The Answer of Resutek Corp's accountant prepared the following product cost report for the Mixing Department, the first and only department of its manufacturing process, for the month of January:
  a. Prepare the journal entry to record the raw materials used in production during January.
b. Prepare the journal entry(ies) related to conversion costs incurred during January, assuming that 50% is direct labor and 50% is indirect labor.
c. Prepare the journal entry to transfer product to finished goods inventory at the end of January.
d. Prepare the journal entry to record sales and cost of goods sold assuming the entire completed inventory is sold immediately for $300,000.

Resutek Corp's Accountant Prepared the Following Product Cost Report for the Mixing