Maha Industries

Cost of Production Summary

For the Month Ended May 31, 20--

Cost of production for month:

Materials $ 8,000

Labor 4,000

Factory overhead 3,000

Total costs to be accounted for $15,000

Unit output for month:

Finished and transferred to Finished goods

during month 3,500

Equivalent units of work in process, end of

month (2,000 units, 25% completed) 500

Total equivalent production 4,000

Unit cost for month:

Materials ($8,000 / 4,000) $2.00

Labor ($4,000 / 4,000) 1.00

Factory overhead ($3,000 / 4,000) .75

Total $3.75

Inventory costs:

Cost of goods finished and transferred to

Finished goods during month: (3,500 $3.75) $13,125

Cost of work in process, end of month:

Materials (2,000 .25 $2.00) $1,000

Labor (2,000 .25 $1.00) 500

Factory overhead (1,000 .25 $.75) 375 1,875

Total production costs accounted for $15,000

what is the journal entry to record production and transfer to the wherehouse