C$4-26$ Mrichtad$-$Ayerage Mathod; Production Report: Second Departmem "I think we goofed when we hired that new assistant controller," said Ruth Scarpino, president of Provost Industries. "Just look at this production report that he prepared for last month for the Finishing Department. I can't make heads or tails out of it$."$

Finishing Department costs:

Work in process inventory, April $1,450$ units; $100\%$ complete as to materials; $60\%$ complete as to conversion costs $.................$ $ $8,208*$

Costs transferred in during the month from the preceding department, $1,950$ units $.................17,940$ Materials cost added during the month $($materials are added when processing is $50\%$ complete in the Finishing Department$).........................6,210$ Conversion costs incurred during the month $.............13,920$ Total departmental costs $....................$ $$46,278$

Finishing Department costs assigned to:

Units completed and transferred to finished goods, $1,800$ units at $$25\mathrm{.}71$ per unit

Work in process inventory, April $30,600$

$$46,278$

units; $0\%$ complete as to materials; $35\%$ complete as to processing $..$

Total departmental costs assigned

$*$Consists of: cost transferred in$,$ $$4,068$; materials cost, $$1,980$; and conversion cost, $$2,160.$

"He's struggling to learn our system," replied Frank Harrop, the operations manager. "The problem is that he's been away from process costing for a long time, and it's coming back slowly."

"It's not just the format of his report that I$\text{'}$m concerned about. Look at that $$25\mathrm{.}71$ unit cost that he's come up with for April. Doesn't that seem high to you?" said Ms$.$ Scarpino. "Yes, it does seem high; but on the other hand, I know we had an increase in materials prices during April, and that may be the explanation," replied Mr$.$ Harrop. "I'll get someone else to redo this report and then we may be able to see what's going on$."$

Provost Industries manufactures a ceramic product that goes through two processing departments$-$Molding and Finishing. The company uses the weighted$-$average method to account for units and costs.

d $1.$ Prepare a revised production report for the Finishing Department.

$2.$ Explain to the president why the unit cost on the new assistant controller's report is so high.