Irvine Company Uses Process Costing

question 73

Essay

Irvine Company uses process costing.The following data are available for the month of June.
(a) Materials purchased, $800,000.
(b) Materials used: Direct materials: Department A $250,000, Department B $230,000.Indirect materials: $20,000.
(c) Factory payroll incurred, $600,000: Direct labor: Department A $300,000, Department B $200,000.Indirect labor: $100,000.
(d) Other factory overhead incurred, $30,000: Power and light $2,000, Depreciation $20,000, Property tax $5,000, Insurance $3,000.
(e) Factory overhead cost was allocated equally to Department A and DepartmentB.
(f) Department A completed and transferred to department B $600,000.
(g) Department B completed and transferred to Finished Goods Inventory account $1,000,000.
Required:
(1) Prepare journal entries for June activities in Irvine Company.
(2) Compute ending working-in-process inventories in Department A and Department

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Definitions:

Diaphragm

A muscular and membranous partition separating the abdominal and thoracic cavities and plays a major role in breathing.

Dead Space

Areas in the respiratory system that do not participate in gas exchange, including the nasal cavities, trachea, and bronchi.

Lung Compliance

Lung compliance refers to the ease with which the lungs can be expanded, determined by the elastic resistance of the lung tissue and chest wall to stretching during inhalation.

Inspiratory Reserve Volume

The additional amount of air that can be inhaled after a normal inhalation, contributing to lung capacity.