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Allen Paper Co. produces the paper used by wallpaper manufacturers. Allen's four-stage process includes mixing, cooking, rolling, and cutting. (Click the icon to view additional
Allen Paper Co. produces the paper used by wallpaper manufacturers. Allen's four-stage process includes mixing, cooking, rolling, and cutting. (Click the icon to view additional information.) The Mixing Department compiled the following data for March: (Click the icon to view the data.) Read the requirements. Requirement 1. Prepare a production cost report for the Mixing Department for March. The company uses the weighted-average method. (Round all cost per unit amounts to the nearest cent and all other amounts to the nearest whole dollar. Abbreviation used: EUP = equivalent units of production.) Allen Paper, Co. Production Cost Report-Mixing Department Data table UNITS Units to account for: Beginning work-in-process Started in production Total units to account for Month Ended March 31 Equivalent Units Physical Direct Conversion Direct Materials Direct Manufacturing Total Labor Overhead Allocated Costs Units Materials Costs Beginning inventory, Mar. 1 $ 450 $ 4,950 155 $ 4,250 190 $ 3,280 795 12,480 Costs added during March 250 4,650 4,900 $ 5,400 $ 4,405 $ 3,470 $ 13,275 Total costs Units accounted for: Completed and transferred out 4,400 4,400 4,400 Ending work-in-process 500 100 100 4,900 4,500 4,500 Total units accounted for COSTS Costs to account for: Direct Materials Conversion Costs Total Costs Beginning work-in-process Costs added during the period Total costs to account for Divided by: Total EUP Cost per equivalent unit More info Print Done On March 1, the Mixing Department had 250 rolls of paper in process. During March, the Mixing Department completed the mixing process for those 250 rolls and also started and completed the mixing process for an additional 4,150 rolls of paper. The department started but did not finish the mixing process for an additional 500 rolls, which were 20% complete with respect to both direct materials and conversion work at the end of March. Direct materials and conversion costs are incurred evenly throughout the mixing process. Print Done
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