E3-2
1. Raw materials $56,300
A/R $56,300
2. Direct Labor $55,000
Wages Payable $55,000
3. Manufacturing Overhead $70,000
Cash $36,000
???? $34,000
4. Work in Process – Cutting $15,700
Work in Process – Assembly $8,900
Raw Materials $24,600
5. Work in Process – Cutting $28,000
Work in Process – Assembly $27,000
Direct Labor $55,000
6. Work in Process – Cutting $32,800
Work in Process – Assembly $34,400
Manufacturing Overhead $67,200
7. Work in Process – Assembly $77,600
Work in Process – Cutting $77,600
8. Finished Goods $135,000
Work in Process – Assembly $135,000
9. COGS $130,000
Finished Goods $130,000
P3 – 5B. The numbers are not working out. This example bears NOTHING in resemblance to the examples offered earlier in the chapter. How is equivalent units of production suppose to be calculated when we don’t know how many units were completed and transferred out???