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 Department
B.
(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
B.Please see Feedback for answers.

Question

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The Answer of 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 Department
B.
(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
B.Please see Feedback for answers.

Irvine Company Uses Process Costing