Cost Management: A Strategic Emphasis 7th Edition by Edward Blocher,David Stout ,Paul Juras,Gary Cokins

Exercise 20

Weighted-Average Method; Transferred-in Costs McCallum Tool Company has two departments, assembly and finishing. The assembly department takes purchased parts and assembles the final product. The finishing department performs testing and adds other materials and packages the product. Direct materials are added at the end of the process in the finishing department. The following summarizes the finishing department's operations for the month of July.

Required Calculate each of the following amounts for the finishing department using the weighted-average process costing method:
1. Equivalent units of transferred-in, direct materials, and conversion.
2. Unit costs of transferred-in, direct materials, and conversion.
3. Cost of goods completed and transferred out during July.
4. Cost of work-in-process inventory at July 31.
5. Show the journal entries for materials, labor, overhead, and finished product for July, assuming that labor is 50% of conversion cost.