Reference no: EM132530594

Rigby Ltd accumulates costs for its single product using process costing. Direct material is added at the beginning of the production process, and conversion activity occurs uniformly throughout the process.

The following is a partially completed production report for May

Production report, May

                      Physical units Percentage of   completion with respect to conversion Equivalent units

                                                         Direct materials Conversion

                                                        

Work in process, 1 May 25,000                          40%

Units started during May                                                      30,000                     55,000

Units completed and

transferred out during May                                                 35,000                        35,000               35,000

Work in process, 31 May 20,000              80%                      20,000                          16,000

Total units accounted for                                                     55,000

Direct material Conversion Total

Work in process, 1 May                                                      $143,000                    $474,700              $617,700

Costs incurred during May                                                  $165,000                    $2,009,000            $2,174,000

Total costs to account for                                       $308,000                                $2,483,700                 $2,791,700

Required:

Question a) Complete the following process costing steps using the weighted average method:

i Calculation of equivalent units.

ii Calculation of unit costs.

iii Analysis of total costs.

Question b) Prepare journal entry to record the transfer of the cost of goods completed and transferred out during May.