Bay Manufacturing produces paint-The company has two processes

Subject: Business    / Accounting
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Bay Manufacturing produces paint. The company has two processes: mixing and packaging. The ingredients for the paint are mixed in large batches and then transferred to the packaging department, where one-gallon cans are filled, capped, labeled, and boxed.

There was no work in process on February 1. The materials are all brought to the packaging department up front and charged to the job. Nothing is transferred to finished goods until the entire job is complete. The materials costs include the packaging, material, and the cost transferred from the mixing department.

On February 2, 15,000 gallons (job 2-1) were transferred into the packaging department from the mixing department and completed on February 19.

The costs incurred to complete job 2-1 in the packaging department are as follows:
Materials    $56,250
Labor    11,250
Overhead (applied based on direct labor hours)    7,500

On February 20, another 20,000 gallons (job 2-2) were transferred into the packaging department. Job 2-2 was 50% complete as to labor at the end of the month.

The costs incurred (unit cost unchanged from job 2-1) to complete job 2-2 in the packaging department are as follows:
Materials    $75,000
Labor    15,000
Overhead (applied based on direct labor hours)    10,000

Instructions:

Compute the physical units of production.

Compute the cost per unit to complete packaging for labor, materials, overhead, and total.

Compute equivalent units and cost of work in process as of the end of February.

Record journal entries for:

the movement of materials from materials inventory to each job

the allocation of payroll to each job

the application of overhead to each job

the movement of work in process to finished goods
Units to be accounted for:    Units
Work in process    –
Started in production    Amount
Total units    Amount
Units accounted for:
Completed and transferred out    Amount
Work in process    Amount
Total units    Amount
Total costs to be incurred, job 2-1    Amount    Amount    Amount
Units    Amount    Amount    Amount
Cost per unit to be incurred    Amount    Amount    Amount    Amount
20,000 units transferred in    Amount    Amount    Amount
Costs incurred    Percentage    Percentage    Percentage
Equivalent gallons    Amount    Amount    Amount
Cost per unit    Amount    Amount    Amount
Cost per unit    Amount    Amount    Amount    Amount
Account to debit    Amount
Account to debit    Amount
Account to credit    Amount
Account to debit    Amount
Account to debit    Amount
Account to credit    Amount
Account to debit    Amount
Account to debit    Amount
Account to credit    Amount
Account to debit    Amount
Account to credit    Amount