?I think we goofed when we hired that new assistant controller,? said Ruth Scarpino, president of Provost Industries. ?Just look at this production report that he prepared for last month for the Finishing Department. I can?t make any sense of it.?

?He?s struggling to learn our system,? replied Frank Harrop, the operations manager. ?The problem is that he?s been away from process costing for a long time, and it?s coming back slowly.?

?It?s not just the format of his report I?m concerned about. Look at that $25.71 unit cost he?s come up with for April. Doesn?t that seem high to you?? said Scarpino.

?Yes, it does; but on the other hand, I know we had an increase in materials prices during April, and that may be the explanation,? replied Harrop. ?I?ll get someone to redo this report and then we may be able to see what?s going on.? Provost Industries manufactures a ceramic product that goes through two processing departments?Moulding and Finishing. The company uses the weighted average cost method to account for units and costs.

Required:

1. Prepare a revised production report for the Finishing Department.

2. Explain to the president why the unit cost on the new assistant controller?s report is so high.

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Finishing Department costs: $ 8,208* Work-in-process inventory, March 1, 450 units; 100% complete as to materials; 60% complete as to conversion costs 17,940 Costs transferred in during the month from the preceding department, 1,950 units Materials cost added during the month (materials are added when processing is 50% complete in the Finishing Department) 6,210 Conversion costs incurred during the month 13,920 Total departmental costs $46,278 Finishing Department costs assigned to: Units completed and transferred to finished goods, 1,800 units at $25.71 per unit $46,278 Work-in-process inventory, March 31, 600 units; 0% complete as to materials; 35% complete as to processing $ -0- Total departmental costs assigned $46,278 *Consists of cost transferred in, $4,068; materials cost, $1,980; and conversion cost, $2,160.