Ogden Co. manufactures a single product in one department. All direct materials

Question

Ogden Co. manufactures a single product in one department. All direct materials are added at the beginning of the manufacturing process. Direct labor and overhead are added evenly throughout the process. The company uses monthly reporting periods for its weighted-average process cost accounting. During October, the company completed and transferred 23,400 units of product to finished goods inventory. Its 3,800 units of beginning goods in process consisted of $21,300 of direct materials, $143,300 of direct labor, and $99,340 of factory overhead. It has 2,200 units (100% complete with respect to direct materials and 50% complete with respect to direct labor and overhead) in process at month-end. After entries to record direct materials, direct labor, and overhead for October, the company’s Goods in Process Inventory account follows.

21.

Required information

Prepare the company’s process cost summary for October using the weighted-average method. (Due to rounding of cost per unit, the total costs accounted for in the cost summary may not equal to sum of all the costs given in the problem. Round your cost per EUP answers to 2 decimal places and consider the same in the other calculations. Round other answers to the nearest dollar amount. Omit the "$" sign in your response.)

Ogden Co. manufactures a single product in one department. All direct materials are added at the beginning of the manufacturing process. Direct labor and overhead are added evenly throughout the process. The company uses monthly reporting periods for its weighted-average process cost accounting. During October, the company completed and transferred 23,400 units of product to finished goods inventory. Its 3,800 units of beginning goods in process consisted of $21,300 of direct materials, $143,300 of direct labor, and $99,340 of factory overhead. It has 2,200 units (100% complete with respect to direct materials and 50% complete with respect to direct labor and overhead) in process at month-end. After entries to record direct materials, direct labor, and overhead for October, the company’s Goods in Process Inventory account follows.

Explanation / Answer

Total units accounted for: Units completed and transferred out 23400 Ending goods in process units 2200 Total units accounted for 25600 Units to account for: Beginning goods in process units 3800 Units started this period (25600-3800) 21800 Total units to account for 25600 Equivalent units of production Units Material % Eq.units- Material Labor % Eq.units- Labor Overhead % Eq.units- Overhead Units completed and transferred out 23400 100% 23400 100% 23400 100% 23400 Ending goods in process units 2200 100% 2200 50% 1100 50% 1100 Total units 25600 25600 24500 24500 Cost per equivalent units: Material Labor Overhead Cost of beginning goods in process units 21300 143300 99340 Cost incurred during the period 511600 1240300 982240 Total costs……… (a) 532900 1383600 1081580 Equivalent units….. (b) 25600 24500 24500 Cost per equivalent units (a)/(b) 20.82 56.47 44.15 Cost assignment and reconcilation Eq. Units Cost per Eq.unit Total Cost Cost of units transferred out: Direct material 23400 20.82 487188 Direct labor 23400 56.47 1321398 Factory overhead 23400 44.15 1033110 Total cost of units transferred out 2841696 Cost of ending goods in process: Direct material 2200 20.82 45804 Direct labor 1100 56.47 62117 Factory overhead 1100 44.15 48565 Total cost of ending goods in process 156486 Total cost to account for: 2998182 Goods in process inventory balance=2998080 Difference of $2 is due to round off

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