Zap Rap Inc. is a manufacturer of audio CDs. The companys chief financial officer is trying to
Question:
There were no finished goods inventories at the beginning of the year. The company uses the weighted-average method of process costing. There is only one processing department. A review of the companys inventory and cost records has disclosed the following data:
Required:
1. Determine the equivalent units and the costs per equivalent unit for materials and con- version for the year.
2. Determine the amount of cost that should be assigned to the ending work in process and finished goods inventories.
3. Prepare the necessary correcting journal entry to adjust the work in process and finished goods inventories to the correct balances as of December 31.
4. Determine the cost of goods sold for the year, assuming that there is no underapplied or overapplied overhead.
Step by Step Answer:
Managerial Accounting
ISBN: 978-1259024900
9th canadian edition
Authors: Ray Garrison, Theresa Libby, Alan Webb