prepare the requested journal entries. 1. Equivalent units of transferred-in, direct materials, and conversion. 2. Equivalent unit costs for transferred-in costs, direct materials, and conversion. 3. Cost of goods completed and transferred out during July. 4. Cost of Work-in-process inventory at July 31. 5. Prepare the journal entries for direct materials, direct labor, overhead, and finished product for July, assuming that direct labor is 50% of conversion cost.
Process Costing
Process costing is a sort of operation costing which is employed to determine the value of a product at each process or stage of producing process, applicable where goods produced from a series of continuous operations or procedure.
Job Costing
Job costing is adhesive costs of each and every job involved in the production processes. It is an accounting measure. It is a method which determines the cost of specific jobs, which are performed according to the consumer’s specifications. Job costing is possible only in businesses where the production is done as per the customer’s requirement. For example, some customers order to manufacture furniture as per their needs.
ABC Costing
Cost Accounting is a form of managerial accounting that helps the company in assessing the total variable cost so as to compute the cost of production. Cost accounting is generally used by the management so as to ensure better decision-making. In comparison to financial accounting, cost accounting has to follow a set standard ad can be used flexibly by the management as per their needs. The types of Cost Accounting include – Lean Accounting, Standard Costing, Marginal Costing and Activity Based Costing.
A-3
![Work-in-process, July 1, 50% complete for conversion costs
Transferred in during July
Completed during July
Work-in-process, July 31, 50% complete for conversion costs
Work-in-process, July 1 (transferred-in costs, $40,000; conversion costs, $31,810)
Transferred in from assembly department during July
Direct materials added during July
Conversion added during July
Total to account for
1. Equivalent units of transferred-in, direct materials, and conversion.
2. Equivalent unit costs for transferred-in costs, direct materials, and conversion.
Required:
Calculate each of the following amounts for the finishing department using the weighted-average process costing method, and then
prepare the requested journal entries.
3. Cost of goods completed and transferred out during July.
4. Cost of Work-in-process inventory at July 31.
5. Prepare the journal entries for direct materials, direct labor, overhead, and finished product for July, assuming that direct labor is
50% of conversion cost.
1.
2.
Complete this question by entering your answers in the tabs below.
3.
4.
Req 1 to 4
Req 5
1. Equivalent units of transferred-in, direct materials, and conversion.
2. Equivalent unit costs for transferred-in costs, direct materials, and conversion.
3. Cost of goods completed and transferred out during July.
4. Cost of Work-in-Process Inventory at July 31.
(Round "WTAVG Cost per EU" answers to 2 decimal places. Round other answer values to the nearest whole dollars.)
Equivalent units:
Transferred-in
Number of
Units
4,000
30,000
29,000
5,000
Direct materials
Conversion
Unit costs
Transferred-in
Direct materials
Conversion
Cost of goods completed and transferred out
Cost of ending work in process inventory
Costs
$ 71,810
189,500
123,250
102,065
$ 486,625
< Req 1 to 4
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