accounting 2 homework
polnak
weighted_average.docxWeighted average: Journalizing in process costing; equivalent units and costs.
Elliott Company produces large quantities of standardized product. The following information is available for its production activities for March.
RAW MATERIALS
Beginning inventory………………………… $ 16,000
Raw materials purchased (on credit).. 250,000
Direct materials used………………………. (168,000)
Indirect materials used……………………. (70,000)
Ending inventory…………………………….. $ 28,000
FACTORY PAYROLL
Direct labor used…………………………….$199,850
Indirect labor used………………………….. 45,000
Total payroll cost(paid in cash)……… $244,850
FACTORY OVERHEAD INCURRED
Indirect materials used………………….$ 70,000
Indirect labor used ………………………. 45,000
Other overhead costs…………………… 164,790
Total factory overhead incurred…… $279,790
FACTORY OVERHEAD APPLIED (140% OF DIRECT LABOR COST)
Total factory overhead applied……..$279,790
Additional information about units and costs of production activities follows.
UNITS
Beginning goods in process inventory……………..2,000
Started…………………………………………………………..20,000
Ending goods in process inventory…………………. 5,000
Status of ending goods in process inventory
Materials-Percent complete…………………………… 100%
Labor and overhead-Percent complete………….. 35%
COSTS
Beginning goods in inventory
Direct materials ……………………….......................$2,500
Direct labor……………………………………………………. 2,650
Factory overhead…………………………………………… 3,710 $ 8,860
Direct materials added………………………………………. 168,000
Direct labor added…………………………………………….. 199,850
Overhead applied (140% of direct labor)……………. 279,790
Total costs………………………………………………………….. $656,500
Ending goods in process inventory……………………… $84,110
During March, 10,000 units of finished goods are sold for $120 cash each. Cost information regarding finished goods follows.
Beginning finished goods inventory………………..$150,000
Cost transferred in………………………………………….. 572,390
Cost of goods sold …………………………………………. (592,390)
Ending finished goods inventory……………………..$130,000
REQUIRED
1. Prepare journal entries dated March 31 to record the following March activities: (a) purchase of raw materials, (b) direct materials usage, (c) indirect materials usage, (d) factory payroll costs, (e) direct labor costs used in production, (f) indirect labor costs, (g) other overhead costs-credit Other Accounts, (h) overhead applied, (i) goods transferred to finished goods, and (j) sale of finished goods.
2. Prepare a process cost summary report for this company, showing costs charged to production, units cost information, equivalent units of production, cost per EUP, and its cost assignment and reconciliation.
ANALYSIS COMPONENT
4.
