Rigby Ltd accumulates costs for its single product using process costing. Direct material is added at the beginning of the production process, and conversion activity occurs uniformly throughout the process. The following is a partially completed production report for May. Production report, May Percentage of completion with Physical Equivalent units units Direct Conversion materials respect to conversion Work in process, 1 May Units started during May 25,000 30,000 40% 55,000 35,000 Units completed and transferred out during May Work in process, 31 May 35,000 35,000 20,000 80% 20,000 16,000 Total units accounted for 55,000 Direct material Conversion Total Work in process, 1 May Costs incurred during May $143,000 $165,000 $308,000 $474,700 $2,009,000 $2,483,700 $617,700 $2,174,000 $2,791,700 Total costs to account for Required: a) Complete the following process costing steps using the weighted average method: i Calculation of equivalent units. ii Calculation of unit costs. iii Analysis of total costs. b) Prepare a journal entry to record the transfer of the cost of goods completed and transferred out during May.
Rigby Ltd accumulates costs for its single product using process costing. Direct material is added at the beginning of the production process, and conversion activity occurs uniformly throughout the process. The following is a partially completed production report for May. Production report, May Percentage of completion with Physical Equivalent units units Direct Conversion materials respect to conversion Work in process, 1 May Units started during May 25,000 30,000 40% 55,000 35,000 Units completed and transferred out during May Work in process, 31 May 35,000 35,000 20,000 80% 20,000 16,000 Total units accounted for 55,000 Direct material Conversion Total Work in process, 1 May Costs incurred during May $143,000 $165,000 $308,000 $474,700 $2,009,000 $2,483,700 $617,700 $2,174,000 $2,791,700 Total costs to account for Required: a) Complete the following process costing steps using the weighted average method: i Calculation of equivalent units. ii Calculation of unit costs. iii Analysis of total costs. b) Prepare a journal entry to record the transfer of the cost of goods completed and transferred out during May.
Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter6: Process Costing
Section: Chapter Questions
Problem 16E: Heap Company manufactures a product that passes through two processes: Fabrication and Assembly. The...
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