Easton Co. produces its product
through a single processing department. Direct materials are added at the start
of production,
P20-4A
Process cost summary; equivalent units - Easton
Co. produces its product through a single processing department.
P20-4A
Easton Co. produces its product through a single processing
department. Direct materials are added at the start of production, and direct
labor and overhead are added evenly throughout the process. The company uses
monthly reporting periods for its weighted-average process cost accounting
system. Its Goods in Process Inventory account follows after entries for direct
materials, direct labor, and overhead costs for October.
Goods in Process Inventory Acct. No. 133
Date
Explanation Debit Credit
Balance
Oct. 1 Balance
348,638
31 Direct
materials 104,090 452,728
31 Direct
labor 416,360 869,088
31 Applied
overhead 244,920 1,114,008
Its beginning goods in process
consisted of $60,830 of direct materials, $176,820 of direct labor, and
$110,988 of factory overhead. During
October, the company started 280,000 units and transferred 306,000
units to finished goods. At the end
of the month, the goods in process inventory consisted of 41,200 units
that were 80% complete with respect
to direct labor and factory overhead.
Required
1. Prepare the company’s process cost
summary for October using the weighted-average method.
2. Prepare the journal entry dated
October 31 to transfer the cost of the completed units to finished goods
inventory.
Check
(1) Costs transferred to finished goods, $1,002,150
SOLUTION
PREVIEW
|
Cost
per EUP
|
Direct
materials
|
Direct
labor
|
Factory
overhead
|
|
Cost of beginning goods in process
|
$ 60,830
|
$
176,820
|
$
110,988
|
|
Costs incurred this period
|
104,090
|
416,360
|
244,920
|
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