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

---

Definitions:

IV × PV Design

A factorial experimental design involving an independent variable (IV) and a participant variable (PV), used to examine their interaction effects.

Participant Variable

A characteristic or attribute of the individuals participating in a study that can affect its outcome.

Manipulated Variable

The variable in an experiment that is systematically altered by the researcher to observe its effect on a dependent variable.

IV × PV Factorial

A factorial design involving an independent variable (IV) and a participant variable (PV), typically used to examine their interactive effects on a dependent variable.