Problem no.

Octavia Corp.’s products are manufactured in three separate departments: Molding, Curing, and Finishing.
Materials are introduced in Molding; additional material is added in Curing. The following information is
available for the Curing Department for May 2022:

Required:
1. Prepare, in good form, a weighted average cost of production report for the Curing Department for May
2022.
2. Prepare, in good form, a First In First Out cost of production report for the Curing Department for May
2022.

Problem no. 2

Elijah Inc. produces accent stripes for automobiles in 50-inch rolls. Each roll passes through three departments
(Striping, Adhesion, and Packaging) before it is ready for shipment to customers. Product costs are tracked by
department and assigned using a process costing system. Overhead is applied to production in each department at
a rate of 80 percent of the department’s direct labor cost.

The following T-account information pertains to departmental operations for June 2022:
Required:
1. What was the cost of goods transferred from the Striping Department to the Adhesion Department for
the month?
2. How much direct labor cost was incurred in the Adhesion Department? How much overhead was assigned
to production in the Adhesion Department for the month?
3. How much direct material cost was charged to products in the Packaging Department?
4. Prepare the journal entries for all interdepartmental transfers of products and the cost of the units sold
during June 2022.

Problem no. 3
KeepIn makes fencing in a two-stage production system. In the Cutting Department, wood is cut and assembled into
6-foot fence sections. In the Coating Department, the sections are pressure-treated to resist the effects of weather
and then coated with a preservative. The following production and cost data are available for March 2022 (units are
6-foot fence sections):

Required:
1. Prepare, in good form, a weighted average cost of production report for the Cutting and Coating
Department for March 2022.
2. Prepare, in good form, a First In First Out cost of production report for the Cutting and Coating
Department for March 2022.