Assigning Costs to Products: Weighted Average Method. Sydney, Inc., uses the weighted average method for its process costing system. The Assembly department at Sydney, Inc., began April with 6,000 units in work-in-process inventory, all of which were completed and transferred out during April. An additional 8,000 units were started during the month, 3,000 of which were completed and transferred out during April. A total of 5,000 units remained in work in-process inventory at the end of April and were at varying levels of completion, as shown in the following.

Direct Materials 40%

Direct Labor 30%

Overhead 50%

The following cost information is for the Assembly department at Sydney, Inc., for the month of April

DIRECT MATERIALS DIRECT LABOR OVERHEAD TOTAL

BEGINNING WIP $300,000 $350,000 $250,000 $900,000

INCURRED $180,000 $200,000 $170,000 $550,000

Can you help me on the 4 step process :

a. Determine the units to be accounted for and units accounted for; then calculate the equivalent units for direct materials, direct labor, and overhead. (Hint: This requires performing step 1 of the four-step process.)

b. Calculate the cost per equivalent unit for direct materials, direct labor, and overhead. (Hint: This requires performing step 2 and step 3 of the four-step process.)

c. Assign costs to units transferred out and to units in ending WIP inventory. (Hint: This requires performing step 4 of the four-step process.)

D. Confirm that total costs to be accounted for (from step 2) equals total costs accounted for (from step 4). Note that minor differences may occur due to rounding the cost per equivalent unit in step 3.

e. Explain the meaning of equivalent units. Production Cost Report: Weighted Average Method.

Refer to Exercise 25. HOW DO YOU PREPARE production cost report for Sydney, Inc., for the month of April using the format shown in Figure 4.9 "Production Cost Report for Desk Products' Assembly Department". Process Costing Journal Entries. Silva Piping Company produces PVC piping in two processing departments Fabrication and Packaging. Transactions for the month of July are shown as follows.

1. Direct materials totaling $15,000 are requisitioned and placed into production$7,000 for the Fabrication department and $8,000 for the Packaging department.

2. Direct labor costs (wages payable) are incurred by each department as follows

FABRICATION $4,500

PACKAGING $6,700

3. Manufacturing overhead costs are applied to each department as follows

FABRICATION $20,000

PACKAGING $14,000

4. Products with a cost of $22,000 are transferred from the Fabrication department to the Packaging department.

5. Products with a cost of $35,000 are completed and transferred from the Packaging department to the finished goods warehouse.

6. Products with a cost of $31,000 are sold to customers.

Required:

1.Prepare journal entries to record each of the previous transactions.

2.In general, how does the process costing system used here differ from a job costing system?