C6.29 The weighted average cost method "I think we made a mistake hiring this assistant controller," exclaimed Ruth Scarpino, president of Industries Provost. Check out last month's production report he prepared for the Finishing Shop! I do not understand anything! - He tries to learn our system, answers Franois Harvey, director of operations. Unfortunately, it's been too long since he's worked in a consistent, continuous manufacturing environment. It's slowly coming back to him. It is not only the presentation of his report that worries me. What is this unit cost of $25.71 for the month of April? Doesn't it seem a little high to you? - You are right. On the other hand, I know that the cost of raw materials increased in April, which could explain many things. I will ask another person to redo this report. We may see it a little more clearly. >> Industries Provost manufactures a ceramic product in two stages corresponding to twoproduction workshops: molding and finishing. The company uses the weighted average cost method to calculate its unit costs. Here is the production report for the month of April. - Includes costs received from previous workshop, \$4,068; raw material costs, \$1,980: and processing cost. 52,160 . C6.29 The weighted average cost method "I think we made a mistake hiring this assistant controller," exclaimed Ruth Scarpino, president of Industries Provost. Check out last month's production report he prepared for the Finishing Shop! I do not understand anything! - He tries to learn our system, answers Franois Harvey, director of operations. Unfortunately, it's been too long since he's worked in a consistent, continuous manufacturing environment. It's slowly coming back to him. It is not only the presentation of his report that worries me. What is this unit cost of $25.71 for the month of April? Doesn't it seem a little high to you? - You are right. On the other hand, I know that the cost of raw materials increased in April, which could explain many things. I will ask another person to redo this report. We may see it a little more clearly. >> Industries Provost manufactures a ceramic product in two stages corresponding to twoproduction workshops: molding and finishing. The company uses the weighted average cost method to calculate its unit costs. Here is the production report for the month of April. - Includes costs received from previous workshop, \$4,068; raw material costs, \$1,980: and processing cost. 52,160