Bonavista Quality Ltd. manufactures granite countertops for residential and commercial markets. The company operates two departments, mixing and packaging. This problem focuses strictly on the packaging department. The process-costing system at Bonavista has a single direct-cost category (direct materials) and a single indirect-cost category (conversion costs). The packaging department introduces all direct materials at the start of production. In contrast, con- version costs are added evenly during the packaging department's process.

The company relies on the weighted average method of process costing and reported the following production information pertaining to the packaging department for June:

The work-in-process inventory at June 1 is 100 percent complete for direct materials and 25 percent complete for conversion costs. The work-in-process inventory at June 30 is 100 percent complete for direct materials and 40 percent complete for conversion costs.
Required:
1. Prepare a physical flow analysis for the packaging department for June.
2. Calculate equivalent units of production for the packaging department for June.
3. Calculate the unit cost for the packaging department for June.
4. Calculate the cost of units transferred out and the cost of EWIP inventory.
5. Prepare a cost reconciliation for the packaging department for June.

Transcribed Image Text:

Physical Conversion Transferred-In Costs Direct Units Materials Costs Work in process, June 1 Transferred in during June Completed and transferred out during June Work in process at June 30 Total costs added during June S 270 $ 135 75 S 1,775 550 500 125 17,600 10,450 10,890