Prepare Production Cost Report—WeightedAverage Method:

Lakeview Corporation is a manufacturer that uses the weighted-average process cost method to account for costs of production. Lakeview manufactures a product that is produced in three separate departments: molding, assembling, and finishing. The following information was obtained for the assembling department for the month of June.

Work in process, June 1 —2,000 units made up of the following:

The following activity occurred during the month of June: 10,000 units were transferred in from the molding department at a prior department cost of $160,000. The assembling department added the following $150,000 of costs.

Eight thousand units were completed and transferred to the finishing department. At June 30, 4,000 units were still in work in process. The degree of completion of work in process at June 30, was as follows:

Required: Prepare a production cost report, using the weighted-average method. (For an example, see Illustration 8-10.)

Transcribed Image Text:

Amount Degree of Completion Prior department costs transferred in from the molding department $32,000 100% Costs added by the assembling department: Direct materials Direct labor Manufacturing overhead Work in process, June 1 $20,000 100 7,200 60 5,500 32,700 $64,700 888