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136. Refer to the following information about the Painting Department in the Richardson
Factory for the month of June. Richardson Factory uses the weighted-average method of
inventory costing.
Beginning goods in process inventory:
Physical units……………………………………………………………… 5,000 units
% complete for materials …………………………………………….. 70%
% complete for labor and overhead …………………………..….. 25%
Materials cost from May ……………………………………………… $7,350
Labor and overhead cost from May ……………………………….. $3,125
Product started and completed:
Physical units……………………………………………………………… 40,000 units
Ending goods in process inventory:
Physical units……………………………………………………………… 4,000 units
% complete for materials …………………………………………….. 40%
% complete for labor and overhead ……………………………….. 10%
Manufacturing costs for June:
Materials ……………………………………………………………………. $96,975
Labor and overhead………………………………………… $79,470
Compute the total cost of all units that were completed and transferred to finished goods
during June. Compute the total cost of the ending goods in process inventory.
137. A company’s January 1 goods in process inventory contained 30,000 units that were 25%
complete with respect to direct labor. The beginning inventory was completed this year and
another 120,000 units were started. Of those started, 80,000 were finished and the remaining
40,000 were 20% complete. Calculate the equivalent units of production for the year using the
FIFO method.
138. Prepare the required general journal entries to record the following transactions for the
Bell Company.
a. Purchased $40,000 of raw materials on account.
b. Used $12,000 of direct materials in the production department.
c. Used $5,000 of indirect materials.
139. Prepare the required general journal entry to record the following transactions for the
Flaherty Company.
a. Incurred $95,000 of factory labor cost which is paid in cash.
b. Used $78,000 of direct labor in the production department.
c. Used $17,000 of indirect labor.
140. Iolaus Company provides the following data for the current year:
Estimated Factory Overhead 7,800
Factory Overhead Incurred $11,400
Factory Overhead Applied ?
Estimated Direct Labor Cost 12,000
Direct Labor Cost Incurred 11,800
Required:
a. Calculate the predetermined overhead allocation rate based on direct labor.
b. Determine the amount of overhead applied to production.
c. Prepare the journal entry to apply factory overhead to goods in process.
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141. Refer to the following information about the Dipping Department of the Indiana Factory
for the month of August. Indiana Factory uses the FIFO method of inventory costing.
Equivalent
Units Total
Cost
Beginning goods in process:
Costs from prior month $ 7,000
Materials added 300
Labor and overhead added 375
Started and completed goods:
Materials added 2,000
Labor and overhead added 2,000
Ending goods in process:
Materials added 320
Labor and overhead added 360
The cost per equivalent unit of materials is $10.00, and the cost per equivalent unit of labor
and overhead is $22.00. Compute the cost that should be assigned to the beginning units that
were completed and transferred during August.
142. Refer to the following information about the Dipping Department of the Indiana Factory
for the month of August. Indiana Factory uses the weighted average method of inventory
costing.
Equivalent
Units Total
Cost
20–67
Beginning goods in process:
Costs from prior month $ 7,000
Materials added 300
Labor and overhead added 375
Started and completed goods:
Materials added 2,000
Labor and overhead added 2,000
Ending goods in process:
Materials added 320
Labor and overhead added 360
The cost per equivalent unit of materials is $10.00, and the cost per equivalent unit of labor
and overhead is $22.00. Compute the cost that should be assigned to the units that were
started and completed during August.
143. Refer to the following information about the Dipping Department of the Indiana Factory
for the month of August. Indiana Factory uses the FIFO method of inventory costing.
Equivalent
Units Total
Cost
Beginning goods in process:
Costs from prior month $ 7,000
Materials added 300
Labor and overhead added 375
Started and completed goods:
Materials added 2,000
Labor and overhead added 2,000
Ending goods in process:
Materials added 320
Labor and overhead added 360
20–68
The cost per equivalent unit of materials is $10.00, and the cost per equivalent unit of labor
and overhead is $22.00. Compute the cost that should be assigned all units that were
completed and transferred during August.
144. Refer to the following information about the Dipping Department of the Indiana Factory
for the month of August. Indiana Factory uses the FIFO method of inventory costing.
Equivalent
Units Total
Cost
Beginning goods in process:
Costs from prior month $ 7,000
Materials added 300
Labor and overhead added 375
Started and completed goods:
Materials added 2,000
Labor and overhead added 2,000
Ending goods in process:
Materials added 320
Labor and overhead added 360
The cost per equivalent unit of materials is $10.00, and the cost per equivalent unit of labor
and overhead is $22.00. Compute the cost that should be assigned to the ending goods in
process inventory for August.
145. Refer to the following information about the Dipping Department of the Indiana Factory
for the month of August. Indiana Factory uses the FIFO method of inventory costing.
Equivalent
Units Total
Cost
Beginning goods in process:
Costs from prior month $ 7,000
Materials added 300
Labor and overhead added 375
Started and completed goods:
Materials added 2,000
Labor and overhead added 2,000
Ending goods in process:
Materials added 320
Labor and overhead added 360
The cost per equivalent unit of materials is $10.00, and the cost per equivalent unit of labor
and overhead is $22.00. Prepare a cost reconciliation for the month of August.
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146. Nano Company uses a weighted average process cost system. The department started and
finished 149,000 units during the current period. The ending inventory consists of 60,000
units that are 75% complete with respect to direct labor and overhead. All direct materials are
added at the beginning of the process. The department incurred direct labor costs of $262,500
and overhead costs of $126,000.
(a) Compute the equivalent cost per unit for direct labor.
(b) Compute the equivalent cost per unit for overhead.
147. Heesacker, Inc. uses a process cost accounting system. The following operating and cost
data occurred during October:
October 1, Inventory: 30,000 units
100% complete for materials
($60,000) and 50% complete
for direct labor ($7,500) and
overhead ($15,000)
October 31, Inventory: 20,000 units
100% complete for materials
and 30% complete for
direct labor and overhead
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Units started during Oct.: 40,000 units
October production costs: Direct materials $110,100
Direct labor 28,900
Overhead 57,800
Materials are added at the beginning of the process. Direct labor and overhead are incurred
evenly throughout the process. Prepare the October process cost summary assuming the
weighted average method of inventory costing.
148. Lipinski Company completed and transferred 90,000 units during the current period.
Based on the following information, determine the cost of the goods completed during the
current reporting period and journalize the transfer.
Direct
Materials Direct
Labor/OH
Costs of Beginning goods in process: $576,000 $400,000
Costs incurred this period 2,400,000 5,120,000
Equivalent units of production 96,000 92,000