Question

Assume Victory uses the average-cost method to account for its process costing system.
VICTORY COMPANY
For the month of November:
Number of units transferred to finished goods....... 700,000
Number of units 30% complete as to labor at
end of period ..................... 180,000
Beginning inventory:
Direct materials.................... $420,000
Direct labor..................... $139,000
Direct materials cost for period............. $2,220,000
Direct labor cost for period................ $3,254,000
Check figure:
(2) Direct labor cost per equivalent unit........... $4.50
(3b) ........................ $783,000

Instructions:
Assume Victory uses the average-cost method to account for its process costing system.
1. Prepare the company's process cost summary using average cost.
2. Prepare the journal entry at the end of the period to transfer the cost of completed units to finished goods.



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  • CreatedJuly 26, 2013
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