Porter Company manufactures its one product by a process that requires two departments. The production starts in department A and is completed in department B. Materials are added at the beginning of the process in department A. Additional materials are added when the process is 50 percent complete in department B. Conversion costs are incurred proportionally throughout the production processes in both departments.

On April 1, department A had 500 units in work-in-process estimated to be 30 percent complete for conversion; department B had 300 units in work-in-process estimated to be 40 percent complete. During April, department A started 1,500 units and completed 1,600 units; department B completed 1,400 units. The work-in-process ending inventory on April 30 in department A is estimated to be 20 percent complete, and the work-in-process ending inventory in department B is estimated to be 70 percent complete.

The cost sheet for department A shows that the units in the work-in-process beginning inventory had $3,000 in direct materials costs and $1,530 in conversion costs. The production costs incurred in April were $12,000 for direct materials and $10,710 for conversion. Department B's work-in-process beginning inventory on April 1 was $6,100, of which $4,200 was transferred-in costs; it incurred $38,000 in direct materials costs and $24,350 in conversion costs in April.

Porter Company uses the weighted-average method for departments A and B.

 

Materials are added in Department B when processing =

50%

Materials are added in Department B when processing =

50%

Beg WIP Inventory--Department A:

Beg WIP Inventory--Department A:

Number of units =

500

Number of units =

500

% complete as to direct materials =

100%

% complete as to direct materials =

100%

% complete as to conversion costs =

30%

% complete as to conversion costs =

30%

Direct materials content =

$3,000

Direct materials content =

$3,000

Conversion cost content =

$1,530

Conversion cost content =

$1,530

Beg WIP Inventory--Department B:

Beg WIP Inventory--Department B:

Number of units =

300

Number of units =

300

% complete as to direct materials =

0%

% complete as to direct materials =

0%

% complete as to conversion costs =

40%

% complete as to conversion costs =

40%

Direct materials content =

$0

Direct materials content =

$0

Conversion cost content =

$6,100

Total cost (all mfg costs) =

$6,100

Costs added during the month:

Costs added during the month:

Department A:

Department A:

Direct materials =

$12,000

Direct materials =

$12,000

Conversion costs =

$10,710

Conversion costs =

$10,710

Department B:

Department B:

Direct materials =

$38,000

Direct materials =

$38,000

Conversion costs =

$24,350

Conversion costs =

$24,350

Production activity during the month:

Production activity during the month:

Department A:

Department A:

Units started into production =

1,500

Units started into production =

1,500

Units completed =

1,600

Units completed =

1,600

Department B:

Department B:

Units started into production =

?

Units started into production =

?

Units completed =

$1,400

Units completed =

1,400

Ending WIP inventory:

Ending WIP inventory:

Department A: % complete as to conversion costs

20%

Department A: % complete as to conversion costs

20%

Department B: % complete as to conversion costs

70%

Department B: % complete as to conversion costs

70%

Required

1. Prepare a production cost report for department A.

2. Prepare a production cost report for department B.