Humphrey Manufacturing produces car parts and batteries. All direct materials are added at the beginning of production,
Question:
Humphrey Manufacturing produces car parts and batteries. All direct materials are added at the beginning of production, and conversion costs are incurred evenly throughout production. The following production information is for the month of April:
Required
(a) Using the weighted average method, assign costs to production for this period.
(b) Using the FIFO method, assign costs to production for this period.
(c) Write out the journal entries for either the weighted average or FIFO methods.
Units: Work in process, 31 March: 6000 units (40% complete) Units started in April: 42 000 Units completed during April: 40000 Work in process 30 April: 8000 units (25% complete) Costs in beginning WIP: Direct materials $ 7500 Conversion costs 2125 Total $ 9625 Costs added this period: Direct materials added in April Conversion costs added in April $ 70000 42 500 Total $112 500
Step by Step Answer:
a and b Assumptions for April Work performed Costs Beginning WIP 6000 Beginning WIP FIFO and Weighted Average complete direct materials 100 Direct materials 7500 complete conversion costs 40 Conversio...View the full answer
Management Accounting
ISBN: 9780730369387
4th Edition
Authors: Leslie G. Eldenburg, Albie Brooks, Judy Oliver, Gillian Vesty, Rodney Dormer, Vijaya Murthy, Nick Pawsey
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A journal entry is an act of keeping or making records of any transactions either economic or non-economic. Transactions are listed in an accounting journal that shows a company\'s debit and credit balances. The journal entry can consist of several recordings, each of which is either a debit or a credit
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