Question
6-47 [LO 6-2, 6-4, 6-6] Weighted-Average Method; Two Departments BDB Company manufactures its one product by a process that requires two departments. The production starts
6-47
[LO 6-2, 6-4,6-6]
Weighted-Average Method; Two DepartmentsBDB Company manufactures its one product by a process that requires two departments. The production starts in Department A and is completed in Department B. Materials are added at the beginning of the process in Department A. Additional materials are added when the process is 50% complete in Department B. Conversion costs are incurred proportionally throughout the production processes in both departments.
On April 1, Department A had 500 units in work-in-process estimated to be 30% complete for conversion; Department B had 300 units in work-in-process estimated to be 40% complete for conversion. During April, Department A started 2,000 units and completed 2,100 units; Department B completed 2,000 units. The work-in-process ending inventory on April 30 in Department A is estimated to be 50% complete for conversion, and the work-in-process ending inventory in Department B is estimated to be 70% complete for conversion.
The cost sheet for Department A shows that the units in the work-in-process beginning inventory had $2,750 in direct materials costs and $1,494 in conversion costs. The production costs incurred in April were $18,000 for direct materials and $21,000 for conversion. Department Bs work-in-process beginning inventory on April 1 was $6,100, of which $4,200 was transferred-in costs; it incurred $38,000 in direct materials costs and $24,350 in conversion costs in April.
BDB Company uses the weighted-average method for departments A and B.
Required
Prepare a production cost report for Department A.
Prepare a production cost report for Department B.
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