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QS 16-13 Weighted average: Journal entry to transfer costs LO P4 Required: Prepare the November 30 journal entry to record th
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Answer #1
Journal Entry
Particulars Debit Credit
WIP Inventory - Painting $ 36,000.00
To WIP Inventory - Assembly $ 36,000.00

Workings:

1) Equivalent Units of Production (EUP) - Weighted Average Method
Units % Mat. EUP- Mat. % Conv. EUP- Conv.
Units completed and transferred out 10000 100% 10000 100% 10000
Units in ending inventory 5500 80% 4400 30% 1650
Equivalent units of production 14400 11650
2) Cost per Equivalent Unit of Production
Materials Conversion
Beginning costs $         2,130.00 $        940.00
During the month costs $      20,910.00 $   22,360.00
Total cost Costs $      23,040.00 Costs $   23,300.00
÷ Equivalent units of production EUP 14400 EUP 11650
Cost per equivalent unit of production $                1.60 $             2.00
3) Cost Assignment and Reconciliation
Cost of units transferred out EUP Cost/ EUP Total Cost
Direct Materials 10000 $      1.60 $      16,000.00
Conversion 10000 $      2.00 $      20,000.00
Total costs of units transferred out (a) $      36,000.00
Cost of ending work in process EUP Cost/ EUP Total Cost
Direct Materials 4400 $      1.60 $         7,040.00
Conversion 1650 $      2.00 $         3,300.00
Total cost of ending work in process (b) $      10,340.00
Total costs accounted for (a+b) $      46,340.00
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