Chapter 16: Q5QS (page 744)
Refer to QS 16-4. Compute the total equivalent units of production with respect to conversion for March using the weighted-average method.
Equivalent units for material: 460,000 units.
Equivalent units for conversion: 370,000 units.
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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
Prepare journal entries to record the following production activities.
1. Paid overhead costs (other than indirect materials and indirect labor) of \(38,750.
2. Applied overhead at 110% of direct labor costs. Direct labor costs were \)75,000.
Refer to QS 16-4. Compute the total equivalent units of production with respect to conversion for March using the FIFO method.
Question: Switch Co. manufactures a single product in one department. Direct labor and overhead are added evenly throughout the process. Direct materials are added as needed. The company uses monthly reporting periods for its weighted-average process costing. During January, Switch completed and transferred 220,000 units of product to finished goods inventory. Its 10,000 units of beginning work in process consisted of \(7,500 of direct materials and \)49,850 of conversion. In process at month-end are 40,000 units (50% complete with respect to direct materials and 30% complete with respect to conversion). During the month, the company used direct materials of \(112,500 in production and incurred conversion costs of \)616,000.
Required
Analysis Component
Oslo Company produces large quantities of a standardized product. The following information is available for its production activities for May.
Units | Costs | |||
Beginning work in process inventory | 4,000 | Beginning work-in-process inventory | ||
Started | 12,000 | Direct material | 2,880 | |
Ending work-in-process inventory | 3,000 | Conversion | 5,358 | \(8,238 |
Status of ending work-in-process inventory | Direct material added | 197,120 | ||
Material – percent complete | 100% | Direct labor added | 123,680 | |
Conversion – percent complete | 25% | Overhead applied (90% of direct labor) | 111,312 | |
Total cost to account for | \)440,350 | |||
Ending work in process inventory | $50,610 |
Prepare a process cost summary report for this company showing costs charged to production, unit cost information, equivalent units of production, cost per EUP, and its cost assignment and reconciliation. Use the weighted-average method.
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