Question
Direct materials are added at the start of the process. Conversion costs are added evenly during the process. We use the weighted average-method of process
Direct materials are added at the start of the process. Conversion costs are added evenly during the process. We use the weighted average-method of process costing. The following information for March 2013 is available.
Work in process, Mar. 1: 10,000 units (70% converted)
Started during March: 40,000 units
Completed and transferred during March: 34,000 units
**Ending working in process is 50% converted as direct labor and overhead**
Total costs for March:
Working in process beginning:
Direct Materials $60,000
Direct Labor: $50,000
Overhead Applied: $20,000
direct materials added during March: $280,000
Direct labor added during March: $265,000
Overhead applied during March: $106,000
***Questions***
1. Calculate cost per unit for materials, labor and overhead.
2. Prepare the journal entries for the costs used in work in process plus the cost transferred from work-in-process to finished goods.
3. If the actual manufacturing overhead was $100,000 during March what is the balance in manufacturing overhead at March 31, 2013.
4. What is the journal entry to account for the over or under-applied overhead?
5. What is the March 31, 2013 balance in work in process?
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