Bangor Products manufactures electronic language translators. Analysis of beginning Work in Process Inventory for July 2008 revealed
Question:
Bangor Products manufactures electronic language translators. Analysis of beginning Work in Process Inventory for July 2008 revealed the following: 800 Units Percent Complete Costs Incurred Direct material 45 $ 6,748 Direct labor 65 8,680 Overhead 40 5,710 Total beginning inventory $21,138 Direct labor costs were extremely high during June, because the company had a labor strike and paid a high premium to get production workers that month. During July, Bangor Products started production of another 11,400 translators and incurred $259,012 for material, $58,200 for direct labor, and $188,210 for overhead. At the end of July, the company had 400 units in process (70 percent complete as to material, 90 percent complete as to direct labor, and 80 percent complete as to overhead). a. Prepare a cost of production report for July using the weighted average method. b. Journalize the July transactions. c. Prepare T-accounts to represent the flow of costs for Bangor Products for July. Use XXX where amounts are unknown and identify what each unknown amount represents.
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