Reference no: EM133013234

Question - Ronda Company employs weighted average process costing system concerning its sole product. The following data were provided by the cost accountant for the year ended Dec 31, 2016:

-There are 15,000 units on Jan 1, 2016 with following costs: 500,000 - direct material; 1,200,000 - direct labor, and 300,000 - factory overhead. The beginning inventory is 30% complete as to conversion cost.

-There are 35,000 units started during 2016 and the total manufacturing cost added during 2016 consists of P4M - direct material; P3M - direct labor; and P1M - factory overhead.

-There are 20,000 units on Dec 31, 2016 which are 80% incomplete as to conversion cost.

-There is no spoilage during the year.

-It is the company's policy to add direct labor and factory overhead evenly throughout the period when all direct materials are added at the beginning of the process.

REQUIRED -

-What is the cost assigned to units completed or the cost of goods manufactured for the year ended December 31, 2016?

-What is the cost assigned to December 31, 2016 work-in-process inventory?

-Assuming the use of FIFO method, what is the cost assigned to units completed or the cost of goods manufactured for the year ended December 31, 2016?

-Assuming the use of FIFO method, what is the cost assigned to Dec 31, 2016 work-in-process inventory?