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Choice Books Inc. has two departments: printing and binding. Each department has one direct cost
category (direct materials) and one indirect cost category (conversion costs). This problem focuses on
the binding department. Books that have undergone the printing process are immediately transferred to
the binding department. Direct materials are added when the binding process is 80% complete.
Conversion costs are added evenly during binding operations. When those o
perations are done, the books are immediately transferred to finished goods. Choice Books Inc. uses the weighted-average method of
process costing. The following is a summary of the April 2018 operations of the binding department.
Beginning work in process 900 $32,775 $ 0 15,000$
Degree of completion, beginning work in process 100% 0% 40 %
Transferred in during April 2018 2,700
Completed and transferred out during April 3,000
Ending work in process (April 30) 600
Degree of completion, ending work in process 100% 0% 60%
Total costs added during April $144,000 $26,700 $ 69,000
Required
1.Summarize the total binding department costs for April 2018 and assign these costs to units
completed (and transferred out) and to
units in ending work in process. (5+5=10 Marks)
2.Prepare journal entries for April transfers from the printing department to the binding
department and from the binding department to finished goods. (5 Marks
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