Question

Ogden Co. manufactures a single product in one department. All direct materials are added at the beginning of the manufacturing process. Direct labor and overhead are added evenly throughout the process. The company uses monthly reporting periods for its weighted-average process cost accounting. During October, the company completed and transferred 23,400 units of product to finished goods inventory. Its 3,800 units of beginning goods in process consisted of $21,300 of direct materials, $143,300 of direct labor, and $99,340 of factory overhead. It has 2,200 units (100% complete with respect to direct materials and 50% complete with respect to direct labor and overhead) in process at month-end. After entries to record direct materials, direct labor, and overhead for October, the company’s Goods in Process Inventory account follows.

  

	Goods in Process Inventory			Acct. No.133
Date	Explanation	Debit	Credit	Balance
Oct. 1	Balance			263,940
31	Direct materials	511,600		775,540
31	Direct labor	1,240,300		2,015,840
31	Applied overhead	982,240		2,998,080

21.

Required information

1.

Prepare the company’s process cost summary for October using the weighted-average method. (Due to rounding of cost per unit, the total costs accounted for in the cost summary may not equal to sum of all the costs given in the problem. Round your cost per EUP answers to 2 decimal places and consider the same in the other calculations. Round other answers to the nearest dollar amount. Omit the "$" sign in your response.)

  

OGDEN CO.
Process Cost Summary
For Month Ended October 31
Costs Charged to Production
Costs of beginning goods in process
(Click to select)Indirect materialsFactory overheadDirect laborIndirect laborDirect materials	$
(Click to select)Direct laborIndirect laborFactory overheadDirect materialsIndirect materials
(Click to select)Indirect laborDirect materialsIndirect materialsFactory overheadDirect labor
		$
Costs incurred this period
(Click to select)Direct materialsFactory overheadIndirect materialsIndirect laborDirect labor	$
(Click to select)Factory overheadIndirect materialsDirect materialsDirect laborIndirect labor
(Click to select)Factory overheadDirect materialsDirect laborIndirect materialsIndirect labor
Total costs to account for		$

  

Unit cost information
Units to account for		Units accounted for
(Click to select)Beginning goods in processDirect laborCompleted & transferred outUnits started this periodEnding goods in process		(Click to select)Completed & transferred outBeginning goods in processEnding goods in processUnits started this periodDirect labor
(Click to select)Ending goods in processUnits started this periodDirect laborCompleted & transferred outBeginning goods in process		(Click to select)Beginning goods in processEnding goods in processDirect laborUnits started this periodCompleted & transferred out
Total units to account for		Total units accounted for

   

Equivalent units of production	Direct Materials	Direct Labor	Factory Overhead
(Click to select)Indirect laborEnding goods in processBeginning goods in processUnits completed & transferred outDirect Labor	EUP	EUP	EUP
(Click to select)Beginning goods in processDirect laborDirect materialsUnits of ending goods in processUnits of beginning goods in process	EUP	EUP	EUP
Equivalent units of production	EUP	EUP	EUP

  

Cost per EUP	Direct Materials	Direct Labor	Factory Overhead
(Click to select)Factory overheadCost of beginning goods in processUnits of beginning goods in processUnits of ending goods in processCost of ending goods in process	$	$	$
(Click to select)Indirect materialsDirect materialsCosts incurred this periodUnits of ending goods in processUnits of beginning goods in process
Total costs	$	$	$
(Click to select)Units of ending goods in processUnits of beginning goods in processDirect laborUnits started this periodEquivalent units of production	EUP	EUP	EUP
Cost per EUP	$  per EUP	$  per EUP	$  per EUP

  

Cost assignment and reconciliation
Costs transferred out
(Click to select)Direct laborIndirect materialsFactory overheadIndirect laborDirect materials	$
(Click to select)Direct materialsFactory overheadIndirect laborDirect laborIndirect materials
(Click to select)Factory overheadIndirect materialsDirect laborIndirect laborDirect materials
		$
Costs of ending goods in process
(Click to select)Direct laborDirect materialsIndirect laborIndirect materialsFactory overhead	$
(Click to select)Direct materialsIndirect materialsDirect laborFactory overheadIndirect labor
(Click to select)Direct laborIndirect laborDirect materialsIndirect materialsFactory overhead
Total costs to account for		$

Answer 1

	Total units accounted for:
	Units completed and transferred out				23400
	Ending goods in process units				2200
	Total units accounted for				25600
	Units to account for:
	Beginning goods in process units				3800
	Units started this period			(25600-3800)	21800
	Total units to account for				25600
	Equivalent units of production				Units	Material %	Eq.units- Material	Labor %	Eq.units- Labor	Overhead %	Eq.units- Overhead
	Units completed and transferred out				23400	100%	23400	100%	23400	100%	23400
	Ending goods in process units				2200	100%	2200	50%	1100	50%	1100
	Total units				25600		25600		24500		24500
	Cost per equivalent units:					Material	Labor	Overhead
	Cost of beginning goods in process units					21300	143300	99340
	Cost incurred during the period					511600	1240300	982240
	Total costs……… (a)					532900	1383600	1081580
	Equivalent units….. (b)					25600	24500	24500
	Cost per equivalent units (a)/(b)					20.82	56.47	44.15
		Cost assignment and reconcilation
					Eq. Units	Cost per Eq.unit	Total Cost
	Cost of units transferred out:
	Direct material				23400	20.82	487188
	Direct labor				23400	56.47	1321398
	Factory overhead				23400	44.15	1033110
	Total cost of units transferred out							2841696
	Cost of ending goods in process:
	Direct material				2200	20.82	45804
	Direct labor				1100	56.47	62117
	Factory overhead				1100	44.15	48565
	Total cost of ending goods in process							156486
	Total cost to account for:							2998182
	Goods in process inventory balance=2998080
	Difference of $2 is due to round off