Question

Alpha Company had the following information for FY 2017: Work in Process - 1/1/17 100,000 units Units Started into Production 575,000 units Work in Process - 12/31/17 75,000 units Direct Material put into Production $575,000 Direct labor put into production $240,000 Factory overhead put into production $603,750 The beginning work in process was 100% complete as to direct materials and 75% complete as to conversion costs. The ending work in process was 100% complete as to direct materials and 50% complete as to conversion costs. The beginning work in process consisted of direct material $100,000 conversion costs $112, 500. Alpha company uses the weighted average method. use this information to prepare December 31, 2017 summary General Journal Entries, without explanation, to record the direct material, direct labor, and factory overhead into the work in process account for FY 2017. Prepare the December 31, 2017 General Journal entry to transfer completed units to the finished goods inventory

Answer 1

use this information to prepare December 31, 2017 summary General Journal Entries, without explanation, to record the direct material, direct labor, and factory overhead into the work in process account for FY 2017.

Date	account and explantion	debit	credit
	Work in process	575000
	Direct material		575000
	(To record direct material)
	Work in process	240000
	Direct labour		240000
	(To record direct labour)
	Work in process	603750
	Factory overhead		603750
	(To record factory overhead)

Unit transferred out = 100000+575000-75000 = 600000

Equivalent unit of material = 600000+75000 = 675000

Cost per equivalent unit of material = (575000+100000)/675000 = 1

Equivalent unit of conversion = 600000+(75000*50%) = 637500

Cost per equivalent unit of conversion = (240000+603750+112500)/637500 = 1.5

Cost of unit transferred out = 2.5*600000 = 1500000

Journal entry :

Date	account and explanation	debit	credit
	Finished goods	1500000
	Work in process		1500000
	(To record transfer completed units to finished goods)