Question

Easton Co. produces its product through a single processing department. Direct materials are added at the start of production, and direct labor and overhead are added evenly throughout the process. The company uses monthly reporting periods for its weighted-average process cost accounting system. Its Goods in Process Inventory account follows after entries for direct materials, direct labor, and overhead costs for October.

  

	Goods in Process Inventory			Acct. No.133
Date	Explanation	Debit	Credit	Balance
Oct. 1	Balance			181,440
31	Direct materials	104,000		285,440
31	Direct labor	413,000		698,440
31	Applied overhead	249,000		947,440

  

Its beginning goods in process consisted of $51,320 of direct materials, $103,600 of direct labor, and $26,520 of factory overhead. During October, the company started 144,000 units and transferred 155,000 units to finished goods. At the end of the month, the goods in process inventory consisted of 21,500 units that were 80% complete with respect to direct labor and factory overhead.

   

Required:

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.)

   

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

     

Unit cost information
Units to account for		Units accounted for
(Click to select)Direct laborEnding goods in processUnits started this periodCompleted & transferred outBeginning goods in process		(Click to select)Direct laborBeginning goods in processUnits started this periodEnding goods in processCompleted & transferred out
(Click to select)Beginning goods in processUnits started this periodDirect laborEnding goods in processCompleted & transferred out		(Click to select)Units started this periodCompleted & transferred outDirect laborEnding goods in processBeginning 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)Beginning goods in processIndirect laborEnding goods in processDirect LaborUnits completed & transferred out	EUP	EUP	EUP
(Click to select)Direct materialsUnits of beginning goods in processDirect laborUnits of ending goods in processBeginning 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)Cost of ending goods in processFactory overheadCost of beginning goods in processUnits of beginning goods in processUnits of ending goods in process	$			$			$
(Click to select)Units of ending goods in processDirect materialsIndirect materialsCosts incurred this periodUnits of beginning goods in process
Total costs	$			$			$
(Click to select)Equivalent units of productionDirect laborUnits of ending goods in processUnits of beginning goods in processUnits started this period			EUP			EUP			EUP
Cost per EUP	$		per EUP	$		per EUP	$		per EUP

   

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

   

2.	Prepare the journal entry dated October 31 to transfer the cost of the completed units to finished goods inventory. (Omit the "$" sign in your response.)

  

Date	General Journal	Debit	Credit
Oct. 31	(Click to select)Merchandise inventoryGoods in process inventoryWages payableSalesWages expenseFinished goods inventoryFactory overheadCash
	(Click to select)Factory overheadWages payableFinished goods inventoryMerchandise inventorySalesGoods in process inventoryWages expenseCash

Answer 1

1)

cost charged to production
Direct material	51320
Direct labor	103600
Factory overhead	26520
cost incurred this period
Direct material	104000
Direct labor	413000
Factory overhead	249000
Total cost to account for	947440

2)

Unit INformation
Beginning work in process [176500-144000]	32500	Units completed and transfered out	155000
Units started in current period	144000	Ending WIP	21500
Unit to account for	176500	uNIts accounted for	176500

3)

Equivalent unit of production	Direct material	Direct labor	Factory overhead
Units completed and transfered out	155000	155000	155000
Ending work in process	21500	17200 [21500*.80]	17200
Equivalent unit	176500	172200	172200

4)

cost per EUP	Direct material	Direct labor	Factory overhead
Beginning cost	51320	103600	26520
Cost incurred this period	104000	413000	249000
Total cost	155320	516600	275520
Equivalent unit	176500	172200	172200
cost per Equivalent unit	.88   [155320/176500]	3	1.6

cost reconcilation
cost transfered out
Direct material [155000*.88]	136400
Direct labor [155000*3]	465000
Facotry overhead [155000*1.6]	248000
Ending WIP
Direct material [21500*.88]	18920
Direct labor [17200*3]	51600
Factory overhead[17200*1.6]	27520
Total cost account for	947440

2).

Date	Account	Debit	credit
oct 31	Finished goods inventory	849400
	Goods in process inventory		849400
	[being cost of units transfered out 136400+465000+248000]