Indy, Inc Uses a Process Costing System

question 65

Essay

Indy, Inc. uses a process costing system. At the beginning of the month there were 7,000 units in process, 30% complete. During the month 90,000 units were transferred in and 86,000 were completed and transferred to finished goods. The ending work in process was 11,000 units, 60% complete.
Materials are added at the beginning of the process, and labour at the 50% point. Overhead costs are incurred uniformly. The cost of beginning work in process was $14,080 for materials, $3,272 for overhead, and $28,700 for transferred-in costs. Current costs are $193,500 for materials, $131,920 for labour, $220,820 for overhead, and $369,000 for transferred-in costs. Indy uses the FIFO method.
a)Determine the cost of the goods completed and transferred out.
b)Write out the journal entry to record the units transferred to finished goods.
c)Determine the cost of the ending work in process.

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Definitions:

Socioeconomic Status

An assessment of where a person or family stands in terms of economic and social hierarchy, judged by factors like their income, educational background, and profession.

Redundancy

The inclusion or presence of additional or duplicate elements or information that can serve as a backup or safety feature.

Social Development

The process by which individuals acquire the values, behaviors, and skills necessary to interact effectively with others.

Physical Activity

Any bodily movement produced by skeletal muscles that requires energy expenditure and promotes health.