Question

cdcrest Company uses a process-costing system. The Company manufactures one product in a le production facility and emplovees the weighted average method to assign costs. As work is completed goods are transferred to finished goods. The following summarizes the production activity for November 2019: Physical units in Inventory October 31, 2019..............5,000 Costs of October 31, 2019 Inventory Direct materials Conversion Costs $10,000 $ 6,900 November Production Units started Units transferred 25,000 28,000 November Costs Direct materials Conversion Costs $57,784 $95,340 Percentage Completion Inventory 10/31/19 Materials Conversion Costs 90% 80% Inventory 11/30/19 Materials Conversion Costs 80% 40% Required: 1. Prepare a Cost Reconciliation Report for November 2019. 2. What is the total equivalent units of production for November 2019? 3. What is the cost per equivalent unit for November 2019? 4. What is the costs transferred to finished goods for November 2019 and the costs assigned to ending work-in-process at November 30, 2019? 5. Prepare the journal entry to record the costs transferred from work-in-process to finished goods.

Answer 1

Answer is given below

Cost Reconciliation Report Costs charged to production: Cost of Beginning work in process Cost incurred this period Total Cost to Account for $16,900 $153,124 $170,024 $170,024 Total costs accounted for Difference due to rounding cost/unit Unit Reconciliation: Units to account for: Beginning WIP Inventory Units Started this period Total Units To Account for Total Units accounted for Units completed and transferred out to FG Ending work in process Total Units Accounted for 5,000 25,000 30,000 28,000 2,000 30,000 2 Equivalent Units of Production - Weighted average method Units % Materials EUP % EUP Materials Conversion Conversion 28,000 2,000 30,000 100% 80% Units completed and transferred out to FG Units in Ending WIP Inventory Equivalent units of production Cost per EUP Cost from Beginning WIP Inventory Current Period Costs Total cost Equivalent units of production Cost per equivalent unit of production 28,000 100% 1,600 40% 29,600 Materials $10,000 $57,784 $67,784 Costs 29,600 EUP $2.29 28,000 800 28,800 Conversion $6,900 $95,3401 $102,240 A 28,800 B I $3.55 A/B Costs EUP EUP Cost per EUP Total Cost 28,000 28,000 $2.29 $3.55 $64,120 $99,400 $163,520 Cost Assignment and Reconciliation Cost transferred out Direct Materials Conversion Total cost transferred out Costs of ending work in process Direct Materials Conversion Total ending work-in process Total costs accounted for EUP 1,600 800 Cost per EUP Total Cost $2.29 $3,664 $3.55 $2,840 $6,504 $170,024 5 Credit Date Accounts Oct 31 Finished goods To work in process (To record transfer of Finished goods) Debit $163,520 $163,520