Question

Bear Printing prints one brochure in two departments on a continuous basis and uses the average cost method of process cost accounting.  The following information was reported for the month of April, 20--:

Production Costs
	Printing Department	Binding Department
Work in process, beginning of month:
Cost in Printing Department				$18,000
Materials	$ 9,500		$ 1,000
Labor	8,000		3,000
Factory overhead	7,000	$24,500	2,000	6,000
Costs incurred during month:
Materials	$23,000		$11,000
Labor	13,000		25,000
Factory overhead	36,000	72,000	16,000	52,000
Total		$96,500

In addition, the cost of production summary for the Binding Department follows:

Bear Printing Cost of Production Summary--Binding Department For the Month Ended April 30, 20--
Cost of work in process, beginning of month:
Cost in Printing Department		$18,000
Cost in Binding Department:
Materials	$1,000
Labor	3,000
Factory overhead	2,000	6,000	$ 24,000
Cost of goods received from Printing
Department during month			67,500
Cost of production for month:
Materials		$11,000
Labor		25,000
Factory overhead		16,000	52,000
Total costs to be accounted for			$143,500
Unit output for month:
Finished and transferred to stockroom    during month			7,500
Equivalent units of work in process, end
of month (2,000 units, 25% completed)			500
Total equivalent production			8,000
Unit cost for month:
Materials [($1,000 + $11,000) / 8,000]			$   1.50
Labor [($3,000 + $25,000) / 8,000]			3.50
Factory overhead [($2,000 + $25,000) / 8,000]		2.25
Total			$   7.25
Inventory costs:
Cost of goods finished and transferred
to stockroom during month:
Cost in Printing Dept.	(7,500 x $ 9.00)	$ 67,500
Cost in Binding Dept.	(7,500 x $ 7.25)	54,375
Total	(7,500 x $16.25)		$121,825
Cost of work in process, end of month:
Cost in Printing Dept. (600 ×$14.50)		$ 18,000
Cost in Binding Dept.:
Materials (2,000 × 25% × $1.50)	$  750
Labor (2,000 × 25% × $3.50)	1,750
Factory overhead (2,000 × 25% × $2.25)	1,125	3,625	21,625
Total production costs accounted for			$143,500

Prepare the Statement of Cost of Goods Manufactured.

Answer 1

Statement of Cost of Gooda Manufactured Printing Department Binding Departemnt Direct Materials Beginning Raw Material Inventory Add: Purchases of Raw Materials Add: Cost of Good Recievd from Printing dep Deduct: Ending Raw Materail Inventory 11000 67500 0 23000 0 Direct mAterial used in Production Direct Labour Manufacturing Overhead 23000 13000 36000 78500 25000 16000 Total Manufacturing Cost 72000 119500 Add: Beginning Wip Inventory Deduct: Ending WIP Inventory 42500 18000 6000 3625 Cost of Good Manufactured 96500 121875