ACCT PROBLEMS-VICTORY COMPANY,FAST CO.,TAMAR CO.

VICTORY COMPANYFor the month of November:Number of units transferred to finished goods700,000Number of units 30% complete as to labor atend of period180,000Beginning inventory:Direct materials$420,000Direct labor$139,000Direct materials cost for period$2,220,000Direct labor cost for period$3,254,000Check figure:(2) Direct labor cost per equivalent unit$4.50(3b)$783,000Instructions:Assume Victory uses the average-cost method to account for its processcosting system.1. Prepare the company’s process cost summary using average cost.2. Prepare the journal entry at the end of the period to transfer the cost of completed units to finished goods.FAST CO.Goods in Process InventoryAcct. No. 133DateExplanationDebitCreditBalanceOct 1Balance335,93031Direct materials102,050437,98031Direct labor408,200846,18031Applied overhead244,9201,091,100Beginning goods in process inventory:Direct materials$59,450Direct labor$172,800Factory overhead$103,680During October:Units started140,000Units transferred to finished goods150,000End of October:Units in goods in process inventory20,000Percent complete80.00%Check figure:(1) Total cost transferred to finished goods$982,500Instructions:Assume Fast uses the average-cost method to account for its processcosting system.1. Prepare the company’s process cost summary using average cost.2. Prepare the journal entry at the end of the period to transfer the cost of completed units to finished goods.TAMAR CO.Goods in Process Inventory Acct. No. 133Date Explanation Debit Credit BalanceOct 1 Balance 241,74031 Direct materials 496,800 738,54031 Direct labor 1,203,300 1,941,84031 Applied overhead 962,640 2,904,480Beginning goods in process inventory: 3,000 units 100% complete as to directmaterials and 40% complete as to direct labor and overhead.Direct materials $19,800Direct labor $123,300Factory overhead $98,640During October: Of the 22,200 units completed, 3,000 were from beginning goods inprocess. The remaining 19,200 were units started and completed during May.Ending goods in process inventory: 2,400 units 100% complete as to directmaterials and 80% complete as to direct labor and overhead.Check figure:Total cost transferred to finished goods $2,667,840Instructions:Note: Data is provided below the forms aswell as on the “Given P20-06A” sheet.Assume Tamar uses the FIFO method to account for its process costing system.1. Prepare the company”s process cost summary using FIFO.2. Prepare the journal entry at the end of the period to transfer the cost of completed units to finished goods.