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Atlantic City Taffy Company produces various kinds of candy, but salt-water taffy is by far its most important product. The company accumulates costs for its product using process costing. Direct material is added at the beginning of the production process, and conversion activity occurs uniformly throughout the process.

Production Report For August 20x1
		Percentage of Completion with Respect to Conversion			Equivalent Units
	Physical Units				Direct Material	Conversion
Work in process, August 1	40,000		80%
Units started during August	80,000
Total units to account for	120,000
Units completed and transferred out during August	100,000				100,000	100,000
Work in process, August 31	20,000		30%		20,000	6,000
Total units accounted for	120,000

	Direct Material			Conversion			Total
Work in process, August 1	$	42,000		$	305,280		$	347,280
Costs incurred during August		96,000			784,400			880,400
Total costs to account for	$	138,000		$	1,089,680		$	1,227,680

1. Use weighted-average process costing to prepare a schedule of equivalent units.

	Equivalent Units Physical Units Direct Material Conversion Units completed and transferred out during August Work in process, August 31 Total units accounted for 0 Total equivalent units 0 0

2.Use weighted-average process costing to compute the costs per equivalent unit.

Direct Material Conversion Total Total costs to account for $0 Equivalent units Costs per equivalent unit $0.00 3. Use weighted-average process costing to compute the cost of goods completed and transferred out during August. 4. Use weighted-average process costing to compute the cost remaining in the work-in-process inventory on August 31. Cost Direct material Conversion Total cost of August 31 work in process $0 5. Prepare a journal entry to record the transfer of the cost of goods completed and transferred out during August. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)