Question

Weighted Average Process Costing Minot Processing Company manufactures one product on a continuous basis in two departments, Processing and Finishing. All materials are added at the beginning of work on the product in the Processing Department. During November 2017, the following events occurred in the Processing Department: Units started 17,000 units Units completed and transferred to Finishing Department 14,500 units Costs assigned to processing Raw materials (one unit of raw materials for each unit of product started) $296,200 Manufacturing supplies used 18,000 Direct labor costs incurred 103,000 Supervisors' salaries 12,000 Other production labor costs 14,000 Depreciation on equipment 6,000 Other production costs 18,000 Additional information follows: • Minot uses weighted average costing and applies manufacturing overhead to Work-in-Process at the rate of 100 percent of direct labor cost. • Ending inventory in the Processing Department consists of 4,500 units that are one-third converted. • Beginning inventory contained 2,000 units, one-half converted, with a cost of $27,300 ($17,300 for materials and $10,000 for conversion).

Answer 1

Cost of Production Report For the Month Ending November 30, 2017 3 Summary of units in process: 4 Beginning 2000 5 Units started 17000 6 In process 19000 7 Completed 14500 8 Ending 4500 9 Equivalent units in process: Materials Conversion Total 10 Units completed 14500 14500 11 Plus equivalent units in ending inventory 4500 1500 12 Equivalent units in process 19000 16000 Total cost to be accounted for and cost per 13 equivalent unit in process: 14 Beginning work-in-process $ 17,300 $ 10,000 $ 27,300 15 Current costs* $ 296,200 $ 206,000 $502,200 16 Total cost in process $ 313,500 $ 216,000 $529,500 17 Equivalent units in process 19000 16000 18 Cost per equivalent unit in process $ 16.50 $ 13.50 $ 30.00 19 Accounting for total costs: 20 Transferred out $435,000 21 Ending work-in-process: 22 Materials $ 74,250 23 Conversion $ 20,250 $ 94,500 24 Total cost accounted for $ 529,500

$ 27,300 27 Work-in-process: 28 Beginning 29 Current manufacturing costs: 30 Direct materials 31 Direct labor 32 Applied overhead 33 Total 34 Cost of goods manufactured 35 Ending $ 296, 200 $ 103,000 $ 103,000 $502,200 $ 529,500 $ 435,000 $ 94,500

Total Ε 1 Cost of Production Report 2 For the Month Ending November 30, 2017 3 Summary of units in process: 4 Beginning 2000 5 Units started 17000 6 In process =+B4+B5 7 Completed 14500 8 Ending =+B6-B7 9 Equivalent units in process: Materials Conversion 10 Units completed =+B7*100% =+B7*100% 11 Plus equivalent units in ending inventory =+B8*100% =+B8*1/3 12 Equivalent units in process =+C10+C11 =+D10+D11 Total cost to be accounted for and cost per 13 equivalent unit in process: 14 Beginning work-in-process 17300 10000 =+C14+D14 15 Current costs* 296200 =103000+(103000*100%) =+C15+D15 16 Total cost in process =+C14+C15 =+D14+D15 =+E14+E15 17 Equivalent units in process =+C12 =+D12 18 Cost per equivalent unit in process =+C16/C17 =+D16/017 =+C18+D18 19 Accounting for total costs: 20 Transferred out =+B7*E18 21 Ending work-in-process: 22 Materials =+C11*C18 23 Conversion =+D11*D18 =+D22+D23 24 Total cost accounted for =+E20+E23

27300 27 Work-in-process: 28 Beginning 29 Current manufacturing costs: 30 Direct materials 31 Direct labor 32 Applied overhead 33 Total 34 Cost of goods manufactured 35 Ending 296200 103000 =+B31*100% =+B30+B31+B32 =+C28+C32 435000 =+C33-C34