Problem 4-30
Albany Company accumulates costs for its product using process costing. Direct material is added at the beginning of the production process, and conversion activity occurs uniformly throughout the process.
Production Report on image below
Required: Use weighted-average process costing in completing the following requirements.
1. Prepare a schedule of equivalent units.
2. Compute the costs per equivalent unit.
3. Compute the cost of goods completed and transferred out during August.
4. Compute the cost remaining in the work-in-process inventory on August 31.
5. Prepare a journal entry to record the transfer of the cost of goods completed and transferred out during August.
Extracted text: Problem 4-30 Albany Company accumulates costs for its product using process costing. Direct material is added at the beginning of the production process, and conversion activity occurs uniformly throughout the process. Partial Production Report; Journal Entries; Weighted- Average Method (LO 4-2, 4-3, 4-4, 4-5) Production Report For August 20x1 2. Cost per equivalent unit, total: $11.43 Equivalent Units Percentage of Completion with Respect to Conversion 5. Work-in-Process Inventory (credit): $1,143,000 Physical Units Direct Materlal Conversion Work in process, August 1 Units started during August 40,000 80% 80,000 Total units to account for. 120,000 Units completed and transferred out during August 100,000 100,000 100,000 Work In process, August 31 20,000 30% 20,000 6,000 Total units accounted for. 120,000 contirued) 162 Chapter 4 Process Costing and Hybrid Product-Costing Systems Direct Materlal Conversion Total $ 305,280 Work In process, August 1. Casts Incurred during August. $ 42,000 96,000 $ 347,280 784,400 880,400 Total costs to account for. $138,000 $1.089,680 $1,227,680 Required: Use weighted-average process costing in completing the following requirements. 1. Prepare a schedule of equivalent units. 2. Compute the costs per equivalent unit. 3. Compute the cost of goods completed and transferred out during August. 4. Compute the cost remaining in the work-in-process inventory on August 31. 5. Prepare a journal entry to record the transfer of the cost of goods completed and transferred out during August.