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Assignment Chapter 20 GQ Company produces its product in a single processing department. Direct materials are added at the start of the process, while direct
Assignment | |||||||||||
Chapter 20 | |||||||||||
GQ Company produces its product in a single processing department. Direct materials are added at the start of | |||||||||||
the process, while direct labor, and overhead are added evenly throughout the process. The company uses | |||||||||||
monthly reporting periods for its weighted-average process cost accounting system. Its Goods in Process | |||||||||||
Inventory account follows after entries for direct materials, direct labor, and overhead costs for November: | |||||||||||
Date | Explanation | Debit | Credit | Balance | |||||||
Nov. 1 | Beg. Balance | 40,870 | |||||||||
Nov. 31 | Direct Material | 10,200 | 51,070 | ||||||||
Nov. 31 | Direct Labor | 40,400 | 91,470 | ||||||||
Nov. 31 | Factory Overhead | 123,000 | 214,470 | ||||||||
Its beginning goods in process consisted of $2,550 of direct materials, $9,620 of direct labor, and $28,700 of factory | |||||||||||
overhead. The equivalent units of production for material is 8,500 and for labor and overhead is 8,200 calculated as | |||||||||||
follows: | Materials | Labor and FO | |||||||||
Transferred out | 7,000 | 7,000 | |||||||||
Ending Inventory | 1,500 | 1,200 | |||||||||
Total | 8,500 | 8,200 | |||||||||
1. Calculate the weighted average cost per unit for materials, labor, and overhead | |||||||||||
Materials: | |||||||||||
Labor: | |||||||||||
Overhead: | |||||||||||
2. Complete the following: | |||||||||||
Cost Assignment and Reconciliation | |||||||||||
Costs Transferred Out | COST/EUP | EUP | |||||||||
Direct materials | |||||||||||
Direct labor | |||||||||||
Factory Overhead | |||||||||||
Costs of goods completed and transferred out | |||||||||||
GOODS IN PROCESS, NOVEMBER 30: | |||||||||||
Direct materials | |||||||||||
Direct labor | |||||||||||
Factory Overhead | |||||||||||
Cost of ending goods in process | |||||||||||
TOTAL COSTS ACCOUNTED FOR: | |||||||||||
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