Question

Un boat Company manufactures small pleasure boats on an assembly-line units are started in the Department A. On July 1 of this year, the Work-in-1 the Department A consisted of 200 units 100% complete as to mat conversion. During the month, 400 units were started and 500 units were compe transferred out. The Work-in-Process on July 31 was 100% complete as to m complete as to conversion. this year, the Work-in-Process inventory of is 100% complete as to materials and 40% complete as to d 500 units were completed and $ 100% complete as to materials and 30% Costs in process at the beginning of the period amounted to $600,000 for materials and for conversion. Costs added during the period were materials costs sadded during the period were materials costs of $1,802,700 and conversion costs of $905,512. Required: Prepare a production cost report using the weighted average method.

Answer 1

Production report using weight Average Method Physical units Units to be accounted for :- Beginning work in process Started into Production Total Units Accounted for 200 400 600 1. Equivalent units for Material and Conversion cost Equivalent Unit Conversion Physical units Material Units to be accounted for:- Units Completed & transferred out Ending work in Process Total Units 500 100 600 500 100 600 500 30 530 Ending Inventory = Beginning Inventory + Started in production - Completed & Transferred Out =200+400-500=100 units Ending WIP = Units in ending WIP X Percentage complete 100 x 100% 100 x 30% 2. Cost Per Equivalent Unit Material Conversion Total cost Cost To be accounted For:- Beginning work in process Cost added during month Total Cost $ $ $ 600,000 1,802,700 2,402,700 $ $ $ 160,000 $ 905,512 $ 1,065,512 $ 760,000 2,708,212 3,468,212 (A) Equivalent Units Cost per unit (B) (A)/(B) 600 4,004.50 $ 530 2,010.40 $ 6,014.90 3. cost of Ending work in Process Ending work in process :- Material Conversion Total Cost of Ending Work in Process 400,450 60,312 100 units x $ 4004.50) (30 units x $ 2010.40) 460,762 4.Cost of goods Transferred out Units Completed & Transferred out:- Material Conversion Total Cost of units completed & Transferred out $ $ 2,002,250 1,005,200 (500 units x $ 4004.50) (500 units x $ 2010.40) 3,007,450 5.Cost Reconcilliation report Total cost $ $ $ 760,000 2,708,212 3,468,212 Cost accounted for :- Cost of beginning work in process cost added to production during the period Total cost to be accounted for Cost accounted for :- Cost of Units Completed & Transferred out Cost of Ending work in process Total cost to be accounted for 3,007,450 calculated above 460,762 calculated above 3,468,212