Cost of Production Report; Originating Department; Average Costing. Sonora Manufacturing Company pro duces a product in two
Question:
Cost of Production Report; Originating Department; Average Costing. Sonora Manufacturing Company pro¬ duces a product in two manufacturing departments, Molding and Finishing. The product is molded out of plastic in the Molding Department and then transferred to the Finishing Department, where parts are added to the molded plastic unit. Since only one product is manufactured by the company, a process cost system is used with an average cost flow assumption.
Data related to August operations in the Molding Department are: LO3 Beginning Added Inventory This Period Costs charged to the department Materials.
Directlabor.
Factory overhead.
$4,120 $44,880 522 12,638 961 18,779 During the period, 9,200 units were transferred from the Molding Department to the Finishing Department. The Molding Department had 1,000 units still in process at the end of July (100% complete as to materials and 40% complete as to conversion cost) and 800 units still in process at the end of August (75% complete as to materials and 25% complete as to conversion cost).
Required: Prepare an August cost of production report for the Molding Department.
Step by Step Answer:
Cost Accounting
ISBN: 9780538828079
11th Edition
Authors: Lawrence H. Hammer, William K. Carter, Milton F. Usry