Rovex Company uses a process costing system and manufactures a single product. Activity for July has just been completed. Materials are added during processing in the first department. Although overhead is applied on the basis of direct labor, labor and manufacturing overhead cost are determined separately due to the fact that manufacturing overhead represents a significant element of product cost. A partially completed production report for July using the weighted average method for the first processing department is on the template for this assignment.

REQUIRED:

Record your answers to the following in the appropriate boxes on the template provided. Your answers to #1-3 should contain formulas that include cell references only.

Calculate July equivalent units of production for Department #1 for materials, labor and overhead.

Calculate July cost per equivalent unit of production for Department #1 for materials, labor and overhead.

Allocate July cost of Department #1 to units completed and transferred and units in ending inventory.

Prepare the journal entry required to record the transfer of completed units from Department #1.

Units to be accounted for:

Work in process, July 1 10000

Materials 100%

Labor 80%

Overhead 80%

Units started into production 100000

Total units to account for 110000

1. Calculate EUP

EUP

Materials Labor Overhead

Transferred to Department #2

Units 100% 95000

Work in process, July 31 15000

Materials 60%

Labor 20%

Overhead 20%

Total EUP

2. Determine Cost/EUP Total Cost Materials Labor Overhead

Work in process, July 1 $8,700 $1,500 $1,800 $5,400

Costs added by department 245,300 154,500 22,700 68,100

Total cost $254,000 $156,000 $24,500 $73,500

Cost/EUP

3. Allocate total department cost

Units completed and transferred:

Materials

Labor

Overhead

Total cost transferred

Ending inventory:

Materials

Labor

Overhead

Total cost of ending inventory

4. Journal entry

Post journal entry here.