Corona Ltd. provides the costs for its single product using process costing. Direct material is added at the beginning of the production process, and conversion activity occurs uniformly throughout the process.

Percent Complete

Physical units Materials Conversion

Work in process, August 1 30,000 40% 80%

Units started during August 80,000

Units completed and transferred

out during August 90,000

Work in process, August 31 20,000 50% 30%

Total DirectMaterials Conversion

Work in process, August 1 $328,000 $200,000 $128,000

Costs incurred during August $410,000 $250,000 $160,000

Total costs to account for $738,000 $450,000 $288,000

Required (show your working in a tabular format):

Using weighted-average process costing in completing the following requirements:

(a) Determine the equivalent units for August. (3 marks)

(b) Compute the costs per equivalent unit. (3 marks)

(c) Compute the cost of goods completed and transferred out during August (3 marks)

(d) Compute the cost remaining in the work in process inventory on August 31. (3 marks)

(e) Prepare a journal entry to record the transfer of the cost of goods completed and transferred out. (3 marks)