Direct materials are added at the beginning

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Reference no: EM13909570

Braun Company produces its product through a single processing department. Direct materials are added at the beginning of the process. Direct labor and overhead are added to the product evenly throughout the process. The company uses monthly reporting periods for its weighted average process cost accounting. Its Goods in Process Inventory account follows after entries for direct materials, direct labor, and overhead costs for November.

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The 7,500 units of beginning goods in process consisted of $ 6,800 of direct materials, $ 5,800 of direct labor, and $ 8,700 of factory overhead. During November, the company finished and transferred 100,000 units of its product to finished goods. At the end of the month, the goods in process inventory consisted of 12,000 units that were 100% complete with respect to direct materials and 25% complete with respect to direct labor and factory overhead.

Required: 

1. Prepare the company's process cost summary for November using the weighted average method. 

2. Prepare the journal entry dated November 30 to transfer the cost of the completed units to finished goods inventory.

Reference no: EM13909570

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