Problem:
(Weighted average)Frankfurt Products manufactures an electronic language translator. The device can translate seven languages in either direction. Analysis of beginning Work in Process Inventory for February 2001 revealed the following:
|
800 Units
|
Percent Complete
|
Cost Incurred
|
|
Material
|
45
|
$ 8,700
|
|
Direct labor
|
65
|
3,800
|
|
Overhead
|
40
|
6,600
|
|
Total beginning WIP
|
$19,100
|
During February, Frankfurt Products started production of another 3,800 translators and incurred $85,380 for material, $23,560 for direct labor, and $65,720for overhead. On February 28, 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 February using the weighted average method.
b. Journalize the February transactions.
c. Prepare T-accounts to represent the flow of costs for Frankfurt Products for February. Use "XXX" where amounts are unknown and identify what each unknown amount represents.