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 laborIndirect materialsDirect materialsFactory overheadDirect labor	$
(Click to select)Factory overheadIndirect materialsDirect materialsIndirect laborDirect labor
(Click to select)Direct materialsDirect laborIndirect laborIndirect materialsFactory overhead
		$
Costs incurred this period
(Click to select)Direct laborIndirect laborDirect materialsFactory overheadIndirect materials	$
(Click to select)Direct laborIndirect materialsFactory overheadIndirect laborDirect materials
(Click to select)Direct laborIndirect laborDirect materialsFactory overheadIndirect materials
Total costs to account for		$

  

Unit cost information
Units to account for		Units accounted for
(Click to select)Units started this periodBeginning goods in processEnding goods in processCompleted & transferred outDirect labor		(Click to select)Units started this periodDirect laborEnding goods in processBeginning goods in processCompleted & transferred out
(Click to select)Beginning goods in processUnits started this periodEnding goods in processDirect laborCompleted & transferred out		(Click to select)Beginning goods in processUnits started this periodDirect laborCompleted & transferred outEnding goods in process
Total units to account for		Total units accounted for

   

Equivalent units of production	Direct Materials	Direct Labor	Factory Overhead
(Click to select)Units completed & transferred outEnding goods in processBeginning goods in processDirect LaborIndirect labor	EUP	EUP	EUP
(Click to select)Direct laborUnits of ending goods in processUnits of beginning goods in processBeginning goods in processDirect materials	EUP	EUP	EUP
Equivalent units of production	EUP	EUP	EUP

  

Cost per EUP	Direct Materials	Direct Labor	Factory Overhead
(Click to select)Cost of beginning goods in processCost of ending goods in processUnits of ending goods in processUnits of beginning goods in processFactory overhead	$	$	$
(Click to select)Indirect materialsUnits of ending goods in processDirect materialsUnits of beginning goods in processCosts incurred this period
Total costs	$	$	$
(Click to select)Units of beginning goods in processEquivalent units of productionDirect laborUnits started this periodUnits of ending goods in process	EUP	EUP	EUP
Cost per EUP	$  per EUP	$  per EUP	$  per EUP

  

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

Answer 1

Solution:

Preparing the company’s process cost summary for October using the weighted-average method:

OGDEN CO. Process Cost Summary For Month Ended October 31
Costs Charged to Production
Costs of beginning goods in process
Direct Materials	$21,300
Direct Labor	$143,300
Factory Overhead	$99,340	$263,940
Costs incurred during this period
Direct Materials	$511,600
Direct Labor	$1,240,300
Factory Overhead	$982,240	$2,734,140
Total costs to account for		$2,998,080

Unit cost information
Units to account for		Units accounted for
Beginning goods in process	3,800	Completed & transferred out	23,400
Units started this period	21,800	Ending goods in process	2,200
Total units to account for	25,600	Total units accounted for	25,600

Equivalent units of production	Direct Materials	Direct Labor	Factory Overhead
Units completed & transferred out	23,400 EUP	23,400 EUP	23,400 EUP
Units of ending goods in process
Direct materials (2,200 * 100%)	2,200 EUP
Direct labor (2,200 * 50%)		1,100 EUP
Factory overhead (2,200 * 50%)			1,100 EUP
Equivalent units of production	25,600 EUP	24,500 EUP	24,500 EUP

Cost per EUP	Direct Materials	Direct Labor	Factory Overhead
Cost Per EUP
Cost of beginning goods in process	$21,300	$143,300	$99,340
Costs incurred this period	$511,600	$1,240,300	$982,240
Total Costs	$532,900	$1,383,600	$1,081,580
/ EUP	25,600 EUP	24,500 EUP	24,500 EUP
Cost Per EUP	$20.81 per EUP	$56.47 per EUP	$44.15 per EUP

  

Cost assignment and reconciliation
Costs transferred out
Direct materials (23,400 EUP * $20.81 per EUP)	$487,188
Direct labor (23,400 EUP * $56.47 per EUP)	$1,321,398
Factory overhead (23,400 EUP * $44.15 per EUP)	$1,033,110	$2,841,696
Costs of ending goods in process
Direct materials (2,200 EUP * $20.82 per EUP)	$45,804
Direct labor (1,100 EUP * $56.47 per EUP)	$62,117
Factory overhead (1,100 EUP * $44.15 per EUP)	$48,565	$156,486
Total costs accounted for		$2,998,182