Easton Co. produces its product through a single processing department. Direct m

Question

Easton Co. produces its product through a single processing department. Direct materials are added at the start of production, and direct labor and overhead are added evenly throughout the process. The company uses monthly reporting periods for its weighted-average process cost accounting system. Its Goods in Process Inventory account follows after entries for direct materials, direct labor, and overhead costs for October.

  

  

Its beginning goods in process consisted of $51,320 of direct materials, $103,600 of direct labor, and $26,520 of factory overhead. During October, the company started 144,000 units and transferred 155,000 units to finished goods. At the end of the month, the goods in process inventory consisted of 21,500 units that were 80% complete with respect to direct labor and factory overhead.

   

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.)

   

     

   

  

   

   

Prepare the journal entry dated October 31 to transfer the cost of the completed units to finished goods inventory. (Omit the "$" sign in your response.)

  

Easton Co. produces its product through a single processing department. Direct materials are added at the start of production, and direct labor and overhead are added evenly throughout the process. The company uses monthly reporting periods for its weighted-average process cost accounting system. Its Goods in Process Inventory account follows after entries for direct materials, direct labor, and overhead costs for October.

Explanation / Answer

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cost charged to production Direct material 51320 Direct labor 103600 Factory overhead 26520 cost incurred this period Direct material 104000 Direct labor 413000 Factory overhead 249000 Total cost to account for 947440

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