Question

	Assignment
	Chapter 20
	GQ Company produces its product in a single processing department. Direct materials are added at the start of
	the process, while 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 November:
		Date	Explanation	Debit	Credit		Balance
		Nov. 1	Beg. Balance				40,870
		Nov. 31	Direct Material	10,200			51,070
		Nov. 31	Direct Labor	40,400			91,470
		Nov. 31	Factory Overhead	123,000			214,470
	Its beginning goods in process consisted of $2,550 of direct materials, $9,620 of direct labor, and $28,700 of factory
	overhead. The equivalent units of production for material is 8,500 and for labor and overhead is 8,200 calculated as
	follows:			Materials	Labor and FO
			Transferred out	7,000	7,000
			Ending Inventory	1,500	1,200
			Total	8,500	8,200
	1. Calculate the weighted average cost per unit for materials, labor, and overhead
			Materials:
			Labor:
			Overhead:
	2. Complete the following:
	Cost Assignment and Reconciliation
	Costs Transferred Out				COST/EUP		EUP
		Direct materials
		Direct labor
		Factory Overhead
		Costs of goods completed and transferred out
	GOODS IN PROCESS, NOVEMBER 30:
		Direct materials
		Direct labor
		Factory Overhead
		Cost of ending goods in process
	TOTAL COSTS ACCOUNTED FOR:

Answer 1

Solution:

Computation of weighted average cost per unit for materials, labor and overhead
Particulars	Material	Labor	Overhead
Opening WIP	$2,550.00	$9,620.00	$28,700.00
Cost Added during period	$10,200.00	$40,400.00	$123,000.00
Total cost to be accounted for	$12,750.00	$50,020.00	$151,700.00
Equivalent units of production	8500	8200	8200
Cost per Equivalent unit	$1.50	$6.10	$18.50

Cost Reconciliation - Weighted Average
Cost Assignment and Reconciliation	Cost/EUP	EUP	Total Cost
Costs Transferred Out:
Direct materials	$1.50	7000	$10,500.00
Direct labor	$6.10	7000	$42,700.00
Overhead	$18.50	7000	$129,500.00
Cost of goods completed and transferred out			$182,700.00
Goods in Process, Nov 30
Direct materials	$1.50	1500	$2,250.00
Direct labor	$6.10	1200	$7,320.00
Overhead	$18.50	1200	$22,200.00
Cost of ending goods in process			$31,770.00
Total Costs accounted for			$214,470.00