QUESTION - Agrava Ltd. provides the costs for its single product using process costing. Direct material is added at the beginning of the production process, and conversion activity occurs uniformly throughout the process.
Required: Using weighted-average process costing to complete the following requirements:
(a) Determine the equivalent units for August.
(b) Compute the costs per equivalent unit.
(c) Compute the cost of goods completed and transferred out during August
(d) Compute the cost remaining in the work in process inventory on August 31.
(e) Prepare a journal entry to record the transfer of the cost of goods completed and transferred out.