The Samrock Paint Company uses a process-costing system. Materials are added at the beginning of a particular process, and conversion costs are incurred uniformly. Work in process at the beginning of the month is 30% complete, while at the end it is 25% complete. One gallon of material makes one gallon of product. Data is as follows: Beginning inventory 900 gal Direct materials added 9,300 gal Ending inventory 2,400 gal Conversion costs incurred $39,800 Cost of direct materials added $82,950 Conversion costs, beginning inventory $1,700 Cost of direct materials, beginning inventory $2,900 Use the weighted average method. Prepare a schedule of output in equivelent units and a schedule of application of costs to products. Show the costs of goods completed and cost of ending work in process.
The Samrock Paint Company uses a process-costing system. Materials are added at the beginning of a particular process, and conversion costs are incurred uniformly. Work in process at the beginning of the month is 30% complete, while at the end it is 25% complete. One gallon of material makes one gallon of product. Data is as follows:
Beginning inventory 900 gal
Direct materials added 9,300 gal
Ending inventory 2,400 gal
Conversion costs incurred $39,800
Cost of direct materials added $82,950
Conversion costs, beginning inventory $1,700
Cost of direct materials, beginning inventory $2,900
Use the weighted average method. Prepare a schedule of output in equivelent units and a schedule of application of costs to products. Show the costs of goods completed and cost of ending work in process.
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