WEIGHTED AVERAGE METHOD, JOURNAL ENTRIES

Seacrest Company uses a process-costing system. The company manufactures a product that is processed in two departments, A and B. As work is completed, it is transferred out. The following summarizes the production activity and costs for November:

Department ADepartment B

Beginning inventories:

Physical unit'5,0008,000

Costs:

Transferred in-$45,320

Direct materials$10,000-

Conversion costs$6,900$16,800

Current production:

Units started25,000?

Units transferred out28,00033,000

Costs:

Transferred in-?

Direct materials$57,800$37,950

Conversion costs$95,220$128,100

Percentage completion:

Beginning inventory40%50%

Ending inventory80%50%

Required:

1. Using the weighted average method, prepare the following for Department A:

a. A physical flow schedule.

b. An equivalent unit calculation.

c. Calculation of unit costs. Round to two decimal places.

d. Cost of EWIP and cost of goods transferred out.

e. A cost reconciliation.

2. Prepare journal entries that show the flow of manufacturing costs for Department A. Use a conversion cost control account for conversion costs. Many firms are now combining direct labour and manufacturing overhead costs into one category. They are not tracking direct labour separately. Offer some reasons for this practice.