Question
Refer to the following information about the Finishing Department in the Davidson Factory for the month of June. Davids on Factory uses the weighted -average
Refer to the following information about the Finishing Department in the Davidson Factory for the month of June. Davids on Factory uses the weighted -average method of inventory costing. Beginning Work in Process inventory: Physical units ....................................................................... 5,000 units % complete for materials ..................................................... 70% % complete for labor and overhead ..................................... 25% Materials co st from May ...................................................... $7,350 Labor and overhead cost from May ...................................... $3,125 Product started and completed: Physical units ....................................................................... 40,000 units Ending Work in Process inventory: Physical units ....................................................................... 4,000 units % complete for mater ials ..................................................... 40% % complete for labor and overhead ...................................... 10% Manufacturing costs for June: Materials ............................................................................... $96,975 Labor and overhead ................................................ $79,470 Required: (1) Compute the total cost of all units that were completed and transferred to finished goods during June. (2) Compute the total cost of the ending Work in Process inventory.
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