(Weighted average) Junge Enterprises manufactures belt buckles in a single-step production process. To determine the proper valuations for inventory balances and Cost of Goods Sold, you have obtained the following information for October 1997:

Beginning inventory units were 100 percent complete as to material, but only 80 percent complete as to labor and overhead. The ending inventory units were 100 percent complete as to material and 50 percent complete as to conversion. Over¬ head is applied to production at the rate of 60 percent of direct labor cost.

a. Prepare a schedule to compute equivalent units of production by cost com¬ ponent assuming the weighted average method.

b. Determine the unit production costs for material and conversion.

c. Prepare a cost of production report for October 1997.LO1

Transcribed Image Text:

Beginning work in process Units started during period Units transferred to finished goods WHOLE UNITS 400,000 2,000,000 1,800,000 COST OF MATERIAL $ 400,000 2,600,000 COST OF LABOR $ 630,000 3,990,000