Weston Products manufactures an industrial cleaning compound that goes through three processing departments?Grinding, Mixing, and Cooking. All
Question:
Weston Products manufactures an industrial cleaning compound that goes through three processing departments?Grinding, Mixing, and Cooking. All raw materials are introduced at the start of work in the Grinding Department, with conversion costs being incurred evenly throughout the grinding process. The work-in-process T-account for the Grinding Department for May follows:
The May 1 work-in-process inventory consists of $16,600 in materials cost and $8,400 in labour and overhead cost. The company uses the weighted average cost method to account for units and costs.
Required:
1. Prepare a production report for the Grinding Department for the month.
2. What criticism can be made of the unit costs that you have computed on your production report?
Step by Step Answer:
WeightedAverage Method 1 A completed production report follows Quantity Schedule and Equivalent Units Quantity Schedule Kilograms to be accounted for Work in process May 1 all materials 13 labour and overhead added last month 20000 Started into production 160000 Total kilograms 180000 Equivalent Units EU Materials Labour Overhead Kilograms accounted for as follows Transferred to mixing 165000 165000 165000 Work in process May 31 all materials 23 labour and overhead added this month 15000 15000 10000 Total kilograms and equivalent units of production 180000 180000 175000 180000 15000 165000 kilograms Costs per Equivalent Unit ...View the full answer
Introduction to Managerial Accounting
ISBN: 978-1259105708
5th Canadian edition
Authors: Peter C. Brewer, Ray H. Garrison, Eric Noreen, Suresh Kalagnanam, Ganesh Vaidyanathan
