Maurice Tutor

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Category > Accounting Posted 19 Aug 2017 My Price 11.00

Delacroix Co

48.     LO.2 (WA cost of production report; journal entries) Delacroix Co. had 800 units of inventory at the beginning of March 2010. Other information about that beginning Work in Process Inventory is as follows:

 

 

 

 

 

Quantity: 800 units                           Percent Complete                    Costs Incurred

 

Direct material

45

$ 6,748

 

Direct labor

65

8,680

 

Overhead

40

5,710

 

Total beginning inventory

 

$21,138

 

 

Direct labor costs were extremely high during February, because the company had a labor strike and paid a high premium to get production workers that month.

During March, Delacroix Co. started production of 11,400 units of product and incurred $259,012 for material, $58,200 for direct labor, and $188,210 for overhead. At the end of March, the company had 400 units in process (70 percent complete as to material, 90 percent complete as to direct labor, and 80 percent complete as to overhead).

a.     Prepare a cost of production report for March using the weighted average method.

b.    Journalize the March transactions.

c.     Prepare T-accounts to represent the flow of costs for Delacroix Co. for March. Use XXX where amounts are unknown and identify what each unknown amount represents.

 

Answers

Maurice Tutor
(5)
Status NEW Posted 19 Aug 2017 12:08 AM My Price 11.00

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