Managerial Accounting

Problem 4-26 (90 minutes)

Weighted-Average Method

1. a. Work in Process—Refining Department.......... 495,000

Work in Process—Blending Department ......... 115,000

Raw Materials......................................... 610,000

b. Work in Process—Refining Department.......... 72,000

Work in Process—Blending Department ......... 18,000

Salaries and Wages Payable .................... 90,000

c. Manufacturing Overhead .............................. 225,000

Accounts Payable.................................... 225,000

d. Work in Process—Refining Department.......... 181,000

Manufacturing Overhead ......................... 181,000

d. Work in Process—Blending Department ......... 42,000

Manufacturing Overhead ......................... 42,000

e. Work in Process—Blending Department ......... 740,000

Work in Process—Refining Department..... 740,000

f. Finished Goods ............................................ 950,000

Work in Process—Blending Department .... 950,000

g. Accounts Receivable..................................... 1,500,000

Sales ..................................................... 1,500,000

Cost of Goods Sold....................................... 900,000

Finished Goods....................................... 900,000

© The McGraw-Hill Companies, Inc., 2006. All rights reserved.

186 Managerial Accounting, 11th Edition

Problem 4-26 (continued)

2.

Accounts Receivable Raw Materials

(g) 1,500,000 Bal. 618,000 610,000 (a)

Bal. 8,000

Work in Process

Refining Department

Work in Process

Blending Department

Bal. 38,000 740,000 (e) Bal. 65,000 950,000 (f)

(a) 495,000 (a) 115,000

(b) 72,000 (b) 18,000

(d) 181,000 (d) 42,000

Bal. 46,000 (e) 740,000

Bal. 30,000

Finished Goods Manufacturing Overhead

Bal. 20,000 900,000 (g) (c) 225,000 223,000 (d)

(f) 950,000 Bal. 2,000

Bal. 70,000

Accounts Payable Salaries and Wages Payable

225,000 (c) 90,000 (b)

Sales Cost of Goods Sold

1,500,000 (g) (g) 900,000

© The McGraw-Hill Companies, Inc.,...