Lemmons Company manufactures a product that passes through three departments: Mix ing, Cooking, and Bottling. In the

Question:

Lemmons Company manufactures a product that passes through three departments: Mix¬

ing, Cooking, and Bottling. In the Cooking Department, materials are added at the end of the process. Conversion costs are incurred uniformly throughout the process. During the month of December, the Cooking Department received 30,000 units from the Mixing De¬

partment. The transferred-in cost of the 30,000 units was $69,900.

Costs added by Cooking during December included the following:

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On December 1, the Cooking Department had 5,000 units in inventory that were 30% complete with respect to conversion costs. On December 31, 6,000 units were in inventory, one-third complete with respect to conversion costs. The costs associated with the 5,000 units in beginning inventory were as follows:

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Required:
Prepare a cost of production report using the weighted average method. Use the five steps outlined in the chapter to produce the information required by the report.
-in Goods

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Cost Management Accounting And Control

ISBN: 9780324002324

3rd Edition

Authors: Don R. Hansen, Maryanne M. Mowen

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