Leiby Inc's accountant prepared the following product cost report for the Baking Department, the first and only department of its manufacturing process, for the month of April:
*Note: The "started and finished" amount of $158,419 includes a rounding adjustment.
a. Prepare the journal entry to record the raw materials used in production during April.
b. Prepare the journal entry(ies) related to conversion costs incurred during April, 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 April.
d. Prepare the journal entry to record sales and cost of goods sold assuming all of the completed inventory is sold immediately for $200,000.

Question

Leiby Inc's accountant prepared the following product cost report for the Baking Department, the first and only department of its manufacturing process, for the month of April:
  *Note: The "started and finished" amount of $158,419 includes a rounding adjustment.
a. Prepare the journal entry to record the raw materials used in production during April.
b. Prepare the journal entry(ies) related to conversion costs incurred during April, 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 April.
d. Prepare the journal entry to record sales and cost of goods sold assuming all of the completed inventory is sold immediately for $200,000.

Quizplus · Accepted Answer

The Answer of Leiby Inc's accountant prepared the following product cost report for the Baking Department, the first and only department of its manufacturing process, for the month of April:
  *Note: The "started and finished" amount of $158,419 includes a rounding adjustment.
a. Prepare the journal entry to record the raw materials used in production during April.
b. Prepare the journal entry(ies) related to conversion costs incurred during April, 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 April.
d. Prepare the journal entry to record sales and cost of goods sold assuming all of the completed inventory is sold immediately for $200,000.

Leiby Inc's Accountant Prepared the Following Product Cost Report for the Baking