The Rainbow Paint Co. uses a processcost system. Materials are added at the beginning of a particular process, and conversion costs are incurred uniformly. Work-in-process at the beginning of the month is 40 percent complete; at the end, 20 percent. One litre of material makes one litre of product. Data are as follows:

1. Use the weighted-average method. Prepare a schedule of output in equivalent units and a schedule of application of costs to products.
Show the cost of goods completed and of ending work in process.
2. Prepare summary journal entries for the use of direct materials and conversion costs. Also prepare a journal entry for the transfer of goods completed, assuming that the goods are transferred to another department.

Beginning inventory Direct material added Ending inventory Conversion costs incurred Cost of direct materials added Conversion costs, beginning inventory Cost of direct materials, beginning inventory 550 litres 7,150 litres 400 litres $34,986 $65,340 $ 1,914 $ 3,190