Question
Davids company uses a process costing system in the manufacture of chairs. Davids worked on 2,600 chairs the past month, 2,200 of which were completed
Davids company uses a process costing system in the manufacture of chairs. Davids worked on 2,600 chairs the past month, 2,200 of which were completed during the period. The remaining chairs were 40% complete. Each chair requires $15 in direct materials that are included in the process when a chair is started. During the month the direct labor and manufacturing overhead for the period was $70,000 and there were $600 direct labor and manufacturing overhead at the beginning of the period in the works in process account. Using the weighted average method, what was the total cost of chairs transferred to finished goods at the end of the month? What was the total cost of baskets still in process at the end of the month?
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