Question: Weatherguard manufactures mailboxes. The following data represent transactions and balances for December 2016, the company's first month of operations.
Purchased direct material on account $248,000
Issued direct material to production 186,000
Accrued direct labor to payroll 134,000
Paid factory rent 3,600
Accrued factory utilities 16,200
Recorded factory equipment depreciation 15,800
Paid supervisor salary 6,400
Ending work in process inventory (6,000 units) 35,000
Ending finished goods inventory (3,000 units) ?
Sales on account ($24 per unit) 648,000
Requirements:
a. How many units were sold in December? How many units were completed in December?
b. What was the total cost of goods manufactured in December?
c. What was the per-unit cost of goods manufactured in December?
d. Prepare the journal entries to record the flow of costs for December. Weatherguard uses a perpetual inventory system and a single Manufacturing Overhead Control account. Assume that actual overhead is included in WIP inventory.