Ogden Co. manufactures a single product in one department. All direct materials
ID: 2513704 • Letter: O
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 $99,340 of factory overhead. It has 2,200 units (100% complete with respect to direct materials and 50% complete with respect to direct labor and overhead) in process at month-end. After entries to record direct materials, direct labor, and overhead for October, the company’s Goods in Process Inventory account follows.
21.
Required information
Prepare the company’s process cost summary for October using the weighted-average method. (Due to rounding of cost per unit, the total costs accounted for in the cost summary may not equal to sum of all the costs given in the problem. Round your cost per EUP answers to 2 decimal places and consider the same in the other calculations. Round other answers to the nearest dollar amount. Omit the "$" sign in your response.)
Ogden Co. 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.
Explanation / Answer
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
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 $2,998,080Related Questions
drjack9650@gmail.com
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.