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149. Browning Company had 8,700 units in beginning inventory with accumulated costs for
direct materials of $17,900, $16,500 direct labor, and $13,200 of overhead. During July, the
company completed and transferred 50,000 units to finished goods. Costs incurred in the
current period included $45,000 of direct materials, $58,500 of direct labor, and $46,800 of
factory overhead. Ending inventory consisted of 12,000 units which were 80% complete with
respect to materials and 50% complete with respect to labor and overhead. Compute the value
assigned to ending inventory based on the weighted average method of inventory costing.
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150. During the year, RB Corp. introduced 132,000 units into production and 144,000 units
were completed and transferred to finished goods. At the end of the year, the company had
13,600 units in process that were 80% complete. Determine how many units the company had
in goods in process at the beginning of the year.
151. The following table of cost information is available for the Messier Company for the
month of November:
Goods in
Process
Inventory—
Mixing Goods in
Process
Inventory—
Molding Finished
Goods
Inventory
Beginning Inventory $12,000 $15,000 $24,000
Costs incurred:
Direct materials 22,000 14,000
Direct labor 32,000 17,000
Overhead applied 47,000 24,500
Costs transferred out (100,000) (152,000)
Costs transferred in 100,000 152,000
Cost of goods sold (149,000)
Ending inventory 13,000 18,500 27,000
Based on the table of cost information above, prepare the general journal entry required to
record the:
a. Transfer of goods from the molding department to the finished goods inventory.
b. Cost of goods sold for November.
152. Prepare general journal entries to record the following production activities for Sherman
Manufacturing.
a. Purchased $82,000 of raw materials on credit.
b. Used $63,500 of direct materials in production.
c. Used $12,800 of indirect materials.
153. Prepare journal entries to record the following production activities for Sherman
Manufacturing.
a. Incurred $105,100 of factory labor cost which is paid in cash.
b. Used $93,900 of direct labor in the production department.
c. Used $11,200 of indirect labor.
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154. Prepare journal entries to record the following production activities for Sherman
Manufacturing.
a. Incurred overhead costs of $79,000 (paid in cash).
b. Applied overhead at 110% of direct labor costs which are $93,900.
c. Transferred completed products with a cost of $258,200 to finished goods inventory.
d. Sold $602,000 of product on credit. Cost is $271,000.
155. Harbor Manufacturing Company uses a process cost accounting system. Materials are
added at the beginning of the process. Direct labor and overhead are added evenly throughout
the process. The company uses monthly reporting periods for its weighted-average process
cost accounting. The following are the operating and cost data information for October.
The October 1 beginning Goods in Process Inventory consisted of 20,000 units. The costs for
this inventory are $82,500 of direct materials, $24,400 of direct labor, and $48,800 of factory
overhead. Factory overhead is applied at 200% of direct labor cost.
In addition to the beginning inventory costs, the company issued the following costs into
Goods in Process Inventory; direct materials, $240,000; direct labor, $68,000; factory
overhead, $136,000.
During October, the company completed and transferred 60,000 units of its product to
finished goods. At the end of the month, the goods in process inventory consisted of 15,000
units that were 40% complete with respect to direct labor and factory overhead and 100%
complete with respect to materials.
Prepare the company’s process cost summary for October using the weighted average method.
Fill in the Blank Questions
156. Process manufacturing, also called process operations or process production, is the
___________ production of products in a _____________________ flow of steps.
157. An equivalent unit of production is an estimate of efforts that is used to calculate the
______________ of each production component.
158. If a process has _______________ or _______________ inventory of partially
completed production, equivalent units must be calculated so that total costs incurred during
the period are assigned to all units worked on.
159. The second step in accounting for production activity in a period is to compute
______________________.
160. The third step in accounting for production activity in a period is to compute the
______________________.
161. The fourth step in accounting for production activity in a period is to prepare a cost
reconciliation, which reconciles __________________ with the ___________________.
162. Materials and labor costs that are clearly associated with a specific process are known as
___________________. Those costs that are not clearly associated with a specific process are
called ________________.
163. A ____________________ contains features of both process and job order operations.
164. In a process costing accounting system, direct materials used are debited to the
__________ account, and indirect materials used are debited to the ____________ account.
165. In a manufacturing operation with two process departments (1 and 2), the flow of costs
would proceed from Goods in Process, Department #1 to ________________.
166. In a process costing accounting system, factory wages are debited to ___________, and
when direct labor is used, that account is credited and ______________ is debited. When
indirect labor is used, the ____________ account is debited and _____________ is credited.
167. In process costing, factory overhead incurred does not usually equal that applied, which
yields either ____________________ or ___________________ overhead.
168. A process cost summary involves computations and analysis at four sequential steps.
These are (1) _________ (2) _____________, (3) _______________, and (4)
______________.
169. On a process cost summary, the total costs to account for (the processing costs for the
period plus the goods in process at the end of the period) should equal ___________________
(____________________ plus _____________________).
170. When the final production department completes goods, the cost of the completed goods
are transferred to ____________________ .
171. When the completed goods are sold, the cost of the completed goods are transferred to
____________________ .
