2-Hot, Inc. makes gourmet mustards in two departments: Cooking and Bottling. In the Cooking Dept., materials are added at the beginning of the process, and conversion costs are added uniformly during production. 2-Hot uses the weighted-average method for process costing. Cooking Dept. data for February:
Physical Units Costs
WIP BB 10,000 gallons Direct materials $ 24,250
40% complete for conversion Conversion costs $ 13,800
Units started in Feb. 25,000 gallons Direct materials $ 56,250
Conversion costs $103,500
WIP EB 5,000 gallons
80% complete for conversion
Q1: How many units were completed and transferred out of the Cooking Department in February?
Q2: Equivalent units (EU) for direct materials in February =
Equivalent units (EU) for conversion costs in February =
Q3: Cost/EU for direct materials in February =
Cost/EU for conversion costs in February =
Q4: Total cost assigned to units completed in February =
Total cost assigned to units in ending WIP in February =
Q5: Journal entry for transfer of units from the Cooking Department to the Bottling Department: