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Unformatted text preview: conversion costs. 860,000 tons of material were put into production, and 875,000 tons exited production. There is no spoilage or loss of tonnage in the production process. Beginning work in process carried a total cost of $265,000, divided 40/20/40 with respect to direct material/direct labor/factory overhead. Additional costs incurred during the month were $3,000,000, divided 50% to direct material and the remainder on a 1:2 ratio between direct labor and factory overhead. (a) Prepare a cost of production report for September. (b) Prepare journal entries to reflect the introduction of additional costs during September, as well as the transfer of completed units to finished goods....
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- Spring '11