Browning Company Had 8,700 Units in Beginning Inventory with Accumulated

question 5

Essay

Browning Company had 8,700 units in beginning inventory with accumulated costs for direct materials of $17,900, $16,500 direct labor, and $13,200 of overhead. During July, the company completed and transferred 50,000 units to finished goods. Costs incurred in the current period included $45,000 of direct materials, $58,500 of direct labor, and $46,800 of factory overhead. Ending inventory consisted of 12,000 units which were 80% complete with respect to materials and 50% complete with respect to labor and overhead. Compute the value assigned to ending inventory based on the weighted average method of inventory costing.

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Definitions:

Accounting Equation

A fundamental principle in finance that states assets equal liabilities plus equity.

Note Settlement

The process of fulfilling the obligations of a promissory note, typically involving the payment of the principal and accrued interest.

Past Due Account

An account receivable that has not been paid by the due date, typically subject to late fees or other penalties until settled.

Accounting Equation

A fundamental principle of accounting representing the relationship between assets, liabilities, and owner's equity: Assets = Liabilities + Owner's Equity.