Problem:
Toronto Titanium Corporation manufactures a highly specialized titanium sheathing material that is used extensively in the aircraft industry. The following data have been compiled for the month of June.
Conversion activity occurs uniformly throughout the production process.
Work in process, June - 40,000 units:
Direct material: 100% complete, cost of ................................................................................................ $110,500
Conversion: 38% complete, cost of ....................................................................................................... 22,375
Balance in work in process, June 1 ........................................................................................................ $132,875
Units started during June ........................................................................................................................ 190,000
Units completed during June and transferred out to finished-goods inventory .............................................. 180,000
Work in process, June 30:
Direct material: 100% complete
Conversion: 55% complete
Costs incurred during June:
Direct material ............................................................................................................................... $430,000
Conversion costs:
Direct labor .................................................................................................................................... $128,000
Applied manufacturing overhead ... .................................................................................................... 192,000
Total conversion costs ...................................................................................................................... $320,000
Required:
Prepare schedules to accomplish each of the following process-costing steps for the month of June. Use the weighted-average method of process costing.