Reference no: EM133182360

Question - CK Corporation manufactures air-fresheners. The following information relates to April:

Beginning work in process 10,000 units

Units started 20,000 units

Units completed 25,000 units

Beginning work-in-process direct materials $ 6,000

Beginning work-in-process conversion $ 2,600

Direct materials added during month $30,000

Direct manufacturing labour during month $12,000

Factory overhead $ 5,000

Beginning work in process was half converted as to labour and overhead. Direct materials are added at the beginning of the process. All conversion costs are incurred evenly throughout the process. Ending work in process was 60% complete.

Required -

a) Using the weighted-average method determine the assignment of costs to units transferred-out and ending inventory.

b) Prepare journal entries to record transferring of material and conversion costs to work-in-process; and, the cost of the units completed and transferred from processing to finished goods.