Problem S South River Chemical manufactures beginning of the process, and conver

Question

Problem S South River Chemical manufactures beginning of the process, and conversion activity occurs uniformly throughout roducdion ie beginning work-in-process inventory is 60% complete with respect to conver work-in-process inventory is 20% complete. The following data pertain to May a product called Zbek. Direct materials are added a the the ending Work in process, May 1 Units started during May Units completed and transferred out Work in process, May 31 Units 15,000 68,000 Direct Conversion Total Materials Co 41,250 S16,500 24,750 -234.630 .72000 62AN Costs: Work in process, May 1 Costs incurred during May Totals average. Prepare all journal entries Prepare a cost production assuming that OH is allocated at 150% of DLS report using weighted

Explanation / Answer

PRODUCTION REPORT - WEIGHTED AVERAGE METHOD Overhead Rate: 150% of DL$ * Quantity Schedule and Equivalent Units Quantity Percentage Complete: Schedule Materials Conversion Units to be accounted for: Beginning: 100% * 60% * Work in process, beginning 15000 * Started into production 60000 * Ending: 100% * 20% * Total units to be accounted for 75,000 Equivalent Units (EU) Units accounted for as follows: Materials Labor Transferred Out 68000 * 68,000 68,000 Work in process, ending 7000 * 7,000 1,400 Total units accounted for 75,000 75,000 69,400 Unit Costs Work in process, beginning 41,250 16,500 * 24,750 Cost added by the department 234,630 72,000 * 162,630 Total cost (a) 275,880 88,500 187,380 Equivalent units (b) 75,000 69,400 Unit cost, (a)/(b) 3.88 = 1.18 + 2.70 Cost Reconciliation Equivalent Units (EU) Costs Cost to be accounted for: Work in process, beginning 41,250 Cost added by the department 234,630 Total cost to be accounted for 275,880 Cost accounted for as follows: 3.88 for Transferred Out units 263,840 68,000 68,000 Work in process, ending: 1.18 for Materials per EU 8,260 7,000 2.70 for Conversion per EU 3,780 1,400        Total work in process, ending 12,040 Total cost accounted for 275,880 Journal Entry Work in process $          72,000 Raw materials inventory $          72,000 Work in process(162630/250%) $          65,052 Direct Labor $          65,052 Work in process(162630/250%)x150% $          97,578 Manufacturing Overhead $          97,578 Finished Goods $        263,840 Work in process $        263,840

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