Kao Tiles, Inc. is a specialized producer of ceramic tiles. Its production process involves highly skilled workers and top-quality ceramic craftsmen. Work in process is relatively large because each tils is in process for up to three weeks because of art, mold work, and drying time. The following information relates to the month of October:
|
|
Completion |
|
| Data |
Units |
Direct Materials |
Conversion Costs |
| Beginning |
5,000 |
65% |
35% |
| Started & Completed |
6,000 |
|
|
| Ending |
7,000 |
75% |
50% |
| Cost Information |
Beginning Work In Process |
Cost Added in October |
| Direct Materials |
$170,000 |
$422,000 |
| Direct Labor |
$160,000 |
$1,055,000 |
| Manufacturing Overhead |
$50,000 |
$107,500 |
Perform the following tasks:
1. Prepare a production cost report for the month of October
2. Prepare the journal entries to recognize the transfer of the units completed and transferred to Finished goods in October.