Question

Braun Company produces its product through a single processing department. Direct materials are added at the beginning of the process. Conversion costs are added to the product evenly throughout the process. The company uses monthly reporting periods for its weighted-average process costing. The Work in Process Inventory account had a balance of $21,300 on November 1, which consisted of $6,800 of direct materials and $14,500 of conversion costs. During the month, the company incurred the following costs: Direct materials - $ 116,400 Conversion - 1,067,000 During November, the company started 104,500 units and transferred 100,000 units to finished goods. At the end of the month, the work in process inventory consisted of 12,000 units that were 100% complete with respect to direct materials and 25% complete with respect to conversion.

Required

1. Prepare the company’s process cost summary for November using the weighted-average method.

2. Prepare the journal entry dated November 30 to transfer the cost of the completed units to finished goods inventory.

Answer 1

Total costs anounted for of units transferred out E UP Total Cost cost EUP A 109,000 110000 Dirut matuials. Conversion 10.5 1100,00 1050000 Total costs transferred out 11,60,000 Cost of ending WIP Dirut materials 1. 13200 12,000 3,000 Conversion 10.5 31500 44700 Total costs anounted for 1204,700 Reg? Journal entry Dr ($) co(d) 11,60,000 11,60,000 Finished goods Inventory Work in Procen Inventory (for cost of completed units tot to finished goods inventory)

Cost per equivalent und (A/B) $21300 Total costs to acount for Beginning work in proun cost added during the yo Total cost to awunt for $ 11, 83,400 $ 12,04 700 Units reconciliation: Units to amount for Beginning work in procen &7500 Started during the yr 104500 Total units to amount for 1, 12,000 Total units amounted for: Transfrored to finished good 1,00,000 12,000 Ending Work in Process Inventory 1112,000 of production - weighted average methos Equivalent mich Units matuial 1001 1,00,000 12,000 Heteo EUP EUP matuial conve conversion 1,00,000 1001 1,00,000 1,20,000 25/ 3000 1,12,000 103000 1007 Transfered to finished goods Ending Work in Pron Inc. Total units Erol Matrides $ 6800 work in procen the year 116400 Cost per equivalent wils o produtos Beginning Cost added during Total costs CA) Equivalent units of proan (3) Conversion $14500 1067000 108 I soo 1,03,000 123200 1,12,000 $ 10.5 $ 1.1