80.2K

Verified Solution

Link Copied!

1. 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.

1. REQUIRED:
2. What is the cost assigned to units completed or the cost of goods manufactured for the year ended December 31, 2016?(2pts)
3. What is the cost assigned to December 31, 2016 work-in-process inventory?(2pts)
4. 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?(2pts)
5. Assuming the use of FIFO method, what is the cost assigned to Dec 31, 2016 work-in-process inventory?(2pts)

Answer & Explanation Solved by verified expert

See Answer