Question:
(WA cost of production report; journal entries) Delacroix Co. had 800 units of inventory at the beginning of March 2010. Other information about that beginning Work in Process Inventory is as follows:
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Quantity: 800 units
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Percent Complete
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Costs Incurred
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Direct material
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45
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$ 6,748
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Direct labor
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65
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8,680
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Overhead
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40
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5,710
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Total beginning inventory
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$21,138
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Direct labor costs were extremely high during February, because the company had a labor strike and paid a high premium to get production workers that month.
During March, Delacroix Co. started production of 11,400 units of product and incurred $259,012 for material, $58,200 for direct labor, and $188,210 for overhead. At the end of March, the company had 400 units in process (70 percent complete as to material, 90 percent complete as to direct labor, and 80 percent complete as to overhead).
a. Prepare a cost of production report for March using the weighted average method.
b. Journalize the March transactions.
c. Prepare T-accounts to represent the flow of costs for Delacroix Co. for March. Use XXX where amounts are unknown and identify what each unknown amount represents.