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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