Three Accounting Problems Assignment

VICTORY COMPANY

For the month of November:

Number of units transferred
to finished goods
700,000

Number of units 30% complete
as to labor at

end of period
180,000

Beginning inventory:

Direct materials
$420,000

Direct labor
$139,000

Direct materials cost for
period
$2,220,000

Direct labor cost for period
$3,254,000

Check figure:

(2) Direct labor cost per
equivalent unit
$4.50

(3b)
$783,000

Instructions:

Assume
Victory uses the average-cost method to account for its process

costing system.

1. Prepare the company’s process cost summary
using average cost.

2. Prepare the journal entry at the end of the
period to transfer the cost of completed units to finished goods.

FAST CO.

Goods
in Process Inventory
Acct. No. 133

Date
Explanation
Debit
Credit
Balance

Oct 1
Balance

335,930

31
Direct materials
102,050

437,980

31
Direct labor
408,200

846,180

31
Applied overhead
244,920

1,091,100

Beginning
goods in process inventory:

Direct materials

$59,450

Direct labor

$172,800

Factory overhead

$103,680

During
October:

Units
started

140,000

Units
transferred to finished goods

150,000

End
of October:

Units
in goods in process inventory

20,000

Percent
complete

80.00%

Check
figure:

(1)
Total cost transferred to finished goods
$982,500

Instructions:

Assume Fast
uses the average-cost method to account for its process

costing
system.

1. Prepare the company’s process cost summary
using average cost.

2. Prepare the journal entry at the end of the
period to transfer the cost of completed units to finished goods.TAMAR CO. Goods in Process Inventory Acct. No. 133 Date Explanation Debit Credit BalanceOct 1 Balance 241,74031 Direct materials 496,800 738,54031 Direct labor 1,203,300 1,941,84031 Applied overhead 962,640 2,904,480 Beginning goods in process inventory: 3,000 units 100% complete as to direct materials and 40% complete as to direct labor and overhead. Direct materials $19,800 Direct labor $123,300 Factory overhead $98,640 During October: Of the 22,200 units completed, 3,000 were from beginning goods in process. The remaining 19,200 were units started and completed during May. Ending goods in process inventory: 2,400 units 100% complete as to direct materials and 80% complete as to direct labor and overhead. Check figure: Total cost transferred to finished goods $2,667,840Instructions:Note: Data is provided below the forms aswell as on the “Given P20-06A” sheet.Assume Tamar uses the FIFO method to account for its process costing system.1. Prepare the company”s process cost summary using FIFO.2. Prepare the journal entry at the end of the period to transfer the cost of completed units to finished goods.