Old MathJax webview

his manner ofcult with the company's cher financial officer is wow they of the ring work in press and finishesgos inventories the the You have been asked to as in this verification The weaknesshown on th companyies are as follows www (complete 2,04000 what 000 1000000 Nereito westion at the beginning of the manufacturing process and overhead is applied to each product at the rate o that there was to finished goots inventory at the beginning of the year. A review of Earth company's inventory sta se the following data allor which are acurate: Cost Units Materials Labour 100000S 300.000 315.000 11804 complete astolakoverhed started in 2000 cast added 13.00000 19 85.000 The comny uses the weighted average cost method 1. Detenine the let us and costs per equivalent unit for materials labour and overhead for the year 2. Denne the amount of eest that should be assigned to the ending work in process and finished goods inventories Precure the many calenty to adjust the work in process and finished goods inventories to the contextes somber 31 Determine the costosos sold for the year assuming there is no under or overapplied overhead Earth Company is a manufacturer of circuit boards. The company's chief financial officer is trying to verify the accuracy of the ending work-in-process and finished goods inventories prior to closing the books for the year. You have been asked to assist in this verification. The year-end balances shown on Earth Company's books are as follows: Units Costs Work in process, December 31 (50% complete 2,50,000 7,00,000 as to labour and overhead Finished goods, December 31 1,50,000 10,00,000 Materials are added to production at the beginning of the manufacturing process, and overhead is applied to each product at the rate of 70% of direct labour cost. There was no finished goods inventory at the beginning of the year. A review of Earth Company's inventory and cost records has disclosed the following data, all of which are accurate: Cost Labour Units Materials 1,00,000 $2,00,000 3,15,000 9,00,000 Work in process, January 1 (80% complete as to labour and overhead) Units started into production 900,000 Cost added during the year Materials cost Labour cost Units completed during the year 13,00,000 19,85,000 7,50,000 Required: The company uses the weighted average cost method 1. Determine the equivalent units and costs per equivalent unit for materials, labour, and overhead for the year 2. Determine the amount of cost that should be assigned to the ending work-in-process and finished goods inventories 3. Prepare the necessary correcting journal entry to adjust the work-in-process and finished goods inventories to the correct balances as of December 31 4. Determine the cost of goods sold for the year assuming there is no under-or overapplied overhead