Question
BDB Company manufactures its one product by a process that requires two departments. The production starts in Department A and is completed in Department B.
BDB Company manufactures its one product by a process that requires two departments. The production starts in Department A and is completed in Department B. Direct materials are added at the beginning of the process in Department A. Additional direct 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 ending Work-in-Process Inventory on April 30 in Department A is estimated to be 50% complete for conversion, and the ending Work-in-Process Inventory in Department B is estimated to be 70% complete for conversion. The cost sheet for Department A shows that the units in the beginning Work-in-Process Inventory had $3,740 in direct materials costs and $1,728 in conversion costs. The production costs incurred in April were $19,260 for direct materials and $23,250 for conversion. Department Bs beginning Work-in-Process Inventory on April 1 was $4,588, of which $2,850 was transferred-in costs; it incurred $40,080 in direct materials costs and $25,622 in conversion costs in April. BDB Company uses the weighted-average method for Departments A and B.
Required:
1. Prepare a production cost report for Department A.
2. Prepare a production cost report for Department B
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