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Question - The Joan Company uses the process cost system and average cost method. The following production data are for the month of July, 20.
Production Costs:
Work in process, beginning of month:
Materials $18,500
Labor 8,750
Factory overhead 4,850
Cost incurred during month:
Materials $93,500
Labor 42,450
Factory overhead 33,500
Production Report
In process, beginning of month 4,000 units
Finished and transferred during month 28,000 units
Work in process, end of month 10,000 units
Stage of completion 40%
a) Prepare a cost of production summary for the month.
b) Prepare the journal entries to record production for the month.
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