Comprehensive Problem (Continued)
(Using weighted-average)
Cost assignment and reconciliation
Costs transferred out
Direct materials (11,000 EUP x $2.90 per EUP)...................$ 31,900
Conversion (11,000 EUP x $21.75 per EUP)………………….... 239,250 $271,150
Costs of ending Work in Process
Part 3 — Journal entries (Using weighted-average)
g. Finished Goods Inventory ………………………….……….…271,150
Work in Process Inventory……………………..….…….. 271,150
Transferred goods to Finished Goods.
h. Cash………………………………………………………………………625,000
Comprehensive Problem (Continued)
Part 4 (Using weighted-average)
General ledger accounts
Raw Materials Inventory Acct. No. 132
Date Explanation Debit Credit Balance
Work in Process Inventory Acct. No. 133
Date Explanation Debit Credit Balance
June 30 Balance 8,135
(b) Direct materials 52,440 60,575
Finished Goods Inventory Acct. No. 135
Date Explanation Debit Credit Balance
June 30 Balance 110,000
Financial and Managerial Accounting, 6th Edition
Comprehensive Problem (Concluded)
Part 4 (Using weighted-average)
Factory Payroll Payable Acct. No. 212
Date Explanation Debit Credit Balance
Sales Acct. No. 413
Date Explanation Debit Credit Balance
(h) July sales 625,000 625,000
Cost of Goods Sold Acct. No. 502
Date Explanation Debit Credit Balance
(h) July sales 265,700 265,700
Factory Overhead Acct. No. 540
Date Explanation Debit Credit Balance
Part 5 (Using weighted-average)
Computation of gross profit for July
Sales……………..………………………..………………….…………………….…....$ 625,000
Comprehensive Problem (Continued)
Part 2 (Using FIFO)
MAJOR LEAGUE BAT CO.
Process Cost Summary (FIFO)
For Month Ended July 31
Costs Charged to Production
Costs of beginning work in process
Direct materials……..…………………………………….………….. $ 2,660
Conversion………..……………………….………………………….… 5,475 $ 8,135
Costs incurred this period
Unit cost information
Units to account for Units accounted for
Beginning work in process………..………….….………5,000 Complete & transferred out……..…..11,000
Equivalent units of production
Direct
Materials Conversion
Units to complete beginning WIP
Direct materials (5,000 x 25%).......... 0 EUP
Conversion (5,000 x 25%)……………... 1,250 EUP
Conversion (8,000 x 40%)……………... _________ 3,200 EUP
Equivalent units of production........... 14,000 EUP 10,450 EUP
[Continued on next page]
Financial and Managerial Accounting, 6th Edition
Comprehensive Problem (Continued)
(Using FIFO)
Cost per EUP
Direct
Materials Conversion
Costs incurred this period…............... $ 52,440 $ 303,375
EUP
EUP
Cost assignment and reconciliation
Costs transferred out
Cost of beginning work in process……………….……….……….. $ 8,135
Cost to complete beginning work in process
Direct materials (0 EUP x $3.75 per EUP)………………………..$ 0
Conversion (1,250 EUP x $29.03 per EUP)……………………… 36,288 36,288
Costs of units started and completed this period
Total costs accounted for………………..……………………………… $363,999*
*Equals $363,950 costs to account for with $49 rounding difference
Part 3 — Journal entries (Using FIFO)
g. Finished Goods Inventory ………………………….……….…241,103
Work in Process Inventory……………………..….…….. 241,103
Transferred goods to Finished Goods.
h. Cash………………………………………………………………………625,000
Comprehensive Problem (Continued)
Part 4 (Using FIFO)
General ledger accounts
Raw Materials Inventory Acct. No. 132
Date Explanation Debit Credit Balance
June 30 Balance 25,000
Work in Process Inventory Acct. No. 133
Date Explanation Debit Credit Balance
June 30 Balance 8,135
(b) Direct materials 52,440 60,575
*Agrees with $122,896 from process cost summary with $49 rounding difference
Finished Goods Inventory Acct. No. 135
Date Explanation Debit Credit Balance
June 30 Balance 110,000
(g) Transfer in from prod. 241,103 351,103
Financial and Managerial Accounting, 6th Edition
Comprehensive Problem (Continued)
Part 4—(Using FIFO) concluded
Factory Payroll Payable Acct. No. 212
Date Explanation Debit Credit Balance
Sales Acct. No. 413
Date Explanation Debit Credit Balance
(h) July sales 625,000 625,000
Cost of Goods Sold Acct. No. 502
Date Explanation Debit Credit Balance
(h) July sales 265,700 265,700
Factory Overhead Acct. No. 540
Date Explanation Debit Credit Balance
(b) Indirect materials 10,000 10,000
Comprehensive Problem (Concluded)
Part 5 (Using FIFO)
Computation of gross profit for July
Sales……………..………………………..………………….…………………….…....$ 625,000
Financial and Managerial Accounting, 6th Edition