Problem

Partial Production Report; Journal Entries; Weighted Average MethodAlbany Company accumula...

Partial Production Report; Journal Entries; Weighted Average Method

Albany Company accumulates costs for its product using process costing. Direct material is added at the beginning of the production process. and conversion activity occurs uniformly throughout the process.

ProductionReport

Forthe Month of May

 

PhysicalUnits

Percentageof Completion with Respect to Conversion

Equivalent Units

 

 

 

Direct Material

Conversion

Work inprocess,August1

40,000

80%

 

 

Units started during August

80,000

 

 

 

Total units to account for

120,000

 

 

 

Units completed and transferred out during August

100,000

 

100,000

100,000

Work in process,August31

20,000

30%

20,000

6,000

Total units accounted for

120,000

 

 

 

 

 

Direct Material

Conversion

Total

Work in process,May1

$42,000

$305,280

$347,280

Costs incurred during May

96,000

784,400

880,400

Total costs to account for.

$138,000

$1,089,680

$1,227,680

Required: Use weighted-average process costing in completing the following requirements.

1. Prepare a schedule of equivalent units.

2. Compute the costs per equivalent unit.

3. Compute the cost of goods completed and transferred out during August.

4. Compute the cost remaining in the work-in-process inventory on August 31.

5. Prepare a journal entry to record the transfer of the cost of goods completed and transferred out during August.

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