Question - Found Sound Company mass-produces miniature speakers for personal sound systems. The following cost information is available for June 2010:
Beginning inventory direct material cost ..............................$4,133.20
Beginning inventory conversion cost ................................. 873.10
Direct material issued during June ....................................62,928.00
Direct labor incurred during June .....................................13,070.00
Overhead applied during June .........................................10,356.00
On June 1, the company had 1,000 units in process, which were 60 percent complete as to material and 30 percent complete as to conversion. Found Sound started 8,400 units into process during June and had 300 units still in process on June 30. The ending WIP units were 80 percent complete as to material and 70 percent complete as to conversion.
a. Compute the unit costs for June under the weighted average method for direct material and for conversion.
b. Determine the cost transferred out for June using the weighted average method.
c. Determine the cost of June 30 ending inventory using the weighted average method.
d. Compute the unit costs for June under the FIFO method for direct material and for conversion.
e. Determine the total costs transferred to Finished Goods Inventory during June using the FIFO method.
f. Determine the cost of June 30 ending inventory using the FIFO method.
g. Prepare the entries for the direct material, direct labor, and overhead cost assigned to production during June as well as the transfer of the completed goods during June using the weighted average method.