Question
(12 points) Anchor Inc. uses the weighted-average method in its process costing system. The following data concern the operations of the company's first processing department
(12 points) Anchor Inc. uses the weighted-average method in its process costing system. The following data concern the operations of the company's first processing department for a recent month.
| Work in process, beginning: |
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| Units in process........................................................... | 5,000 |
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| Costs in the beginning inventory: |
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| Materials cost........................................................... | $281,250 |
| Conversion cost........................................................ | $50,000 |
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| Units started into production during the month.............. | 130,000 |
| Units completed and transferred out............................... | 110,000 |
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| Costs added to production during the month: |
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| Materials cost............................................................... | $500,000 |
| Conversion cost........................................................... | $400,000 |
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| Work in process, ending: |
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| Units in process........................................................... | 25,000 |
| % of completion with respect to materials.................. | 60% |
| % of completion with respect to conversion............... | 40% |
Required:
Prepare a process costing departmental production report (calculation of equivalent units, cost per equivalent unit, and cost reconciliation) for the department using the weighted-average method. Round the cost per unit to the nearest cent.
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