Question

Alvin Construction manufactures small tractors on an assembly-line basis. The units are started
in Department Y. On January 1 of this year, the Work-in-Process inventory of Department Y
consisted of 200 units 100% complete as to materials and 20% complete as to conversion.
During the month, 800 units were started and 500 units were completed and transferred out. The
Work-in-Process on January 31 was 100% complete as to materials and 20% complete as to
conversion.
Costs in process at the beginning of the period amounted to $100,000 for materials and $25,000
for conversion. Costs added during the period were materials costs of $200,000 and conversion
costs of $143,000.
Required
1. Prepare a production cost report using the weighted-average method. Round answer to 4
decimal places.
2. Prepare the journal entries.

Answer 1