Chico Company produces its product through a single processing department. Direct materials are added at the beginning of the process. Direct labor and overhead are added to the product evenly throughout the process. The company uses monthly reporting periods for its weighted average process cost accounting. Following is the general ledger account detail for November showing the entries that were made for the Work in Process account. 2 3 Work in Process Inventory Acct. No. 133 4 Date Explanation Debit Credit Balance 1-Nov Balance $ 40,600 30-Nov Direct Materials 52,000 92,600 30-Nov Direct Labor 227,000 319,600 3 30-Nov Applied Overhead 90,800 410,400 5 5 3 The 4,750 units of beginning goods in process consisted of $14,000 of direct materials, $19,000 of direct 1 labor, and $7,600 of factory overhead. This makes up the $40,600 beginning balance. During November, the 2 company finished and transferred 51,250 units of its product to finished goods. At the end of the month, the 3 goods in process inventory consisted of 6,000 units that were 100% complete with respect to direct materials 4 and 25% complete with respect to direct labor and factory overhead. 5 6 7 Required (All three are part of this problem.) & A. Prepare the company's process cost summary for November using the welghted average method Sea ranarth 9 27 Required (All three are part of this problem.) 28 A Prepare the company's process cost summary for November using the weighted average method. See report below. BO 29 31 B. 32 Prepare the journal entry dated November 30 to transfer the cost of the completed units to finished goods inventory. 33 34 C. Record sale of all completed units on account for $650,000. 35 36 37 Physical Units 38 Equivalent Units (EU) Conversion Costs Materials Direct Labor Factory Overhead 39 40 41 42 43 Quantities Units to be accounted for: Work in process, beginning Started into production Total units Units accounted for Transferred out Work in process, ending Production Cost Report 44 45 46 DO OS EX PR BYN Class Notes In-class Problem A H Physical Units D Equivalent Units (EU) Conversion Costs Materials Direct Labor Factory Overhead 37 38 39 40 41 42 43 Quantities Units to be accounted for Work in process, beginning Started into production Total units Units accounted for Transferred out Work in process, ending Total units 44 45 46 Materials Direct Labor Factory Overhead Totals + 48 49 50 51 52 53 54 55 Costs Costs to be accounted for Beginning WIP Costs added during month Total costs to be accounted for Equivalent units Unit costs 56 57 58 59 60 Cost Reconciliation Costs accounted for: Transferred out Work in process, ending Production Cost Report DQ QS EX PR BYN Class Notes In-class Problem H 4A B Costs to be accounted for 7 Beginning WP 2 Costs added during month 3 Total costs to be accounted for 4 Equivalent units 5 Unt costs 6 7 Cost Reconciliation 3 Costs accounted for: 9 Transferred out 0 Work in process, ending 1 Direct Materials 2 Direct Labor 3 Factory Overhead 4 Total costs 5 6 Additional support computations: 7 8 9 0 1 2 3 Production Cost Report DO QS EX PR BYN Class Notes in-class Problem Type here to search