Reference no: EM132528996
Rigby Ltd accumulates costs for its single product using process costing. Direct material is added at the beginning of the production process, and conversion activity occurs uniformly throughout the process. The following is a partially completed production report for May.
Production report, May Physical units Percentage of completion with respect to conversion Equivalent units
Direct materials Conversion Work in process, 1 May 25,000 40%
Units started during May 30,000 55,000
Units completed and transferred out during May 35,000 35,000 35,000
Work in process, 31 May 20,000 80% 20,000 16,000
Total units accounted for 55,000
Direct material Conversion
Total Work in process, 1 May $143,000 $474,700 $617,700
Costs incurred during May $165,000 $2,009,000 $2,174,000
Total costs to account for $308,000 $2,483,700 $2,791,700
Required:
Question a) Complete the following process costing steps using the weighted average method:
i Calculation of equivalent units.
ii Calculation of unit costs.
iii Analysis of total costs.
Question b) Required journal entry to record the transfer of the cost of goods completed and transferred out during May