Question
Dont Cry Over Spilled Milk, Inc., a manufacturer of mops, uses the weighted average method in its processing costing system. Dont Cry uses a traditional
Dont Cry Over Spilled Milk, Inc., a manufacturer of mops, uses the weighted average method in its processing costing system. Dont Cry uses a traditional costing system in the allocation of its manufacturing overhead (MOH) to production; MOH costs are allocated to production on the basis of machine hours logged during the period. Total estimated MOH for the period was $300,000 and total estimated machine hours were 100,000. The following data concern the operations of the companys first processing department, Assembly, for June 2012.
Beginning Work in Process | 800 mops, ?60% complete with respect to direct? materials, 10% complete with respect to conversion |
Costs in Beginning Work in Process | $3,712 (of this amount, $1,296 is for direct ?materials) |
Units Started in June | 16,000 mops |
Direct Product Costs Added During June | direct materials $47,076; direct labor ?$216,213 |
Ending Work in Process | 300 mops, 60% completed with respect to direct materials, 70% complete with respect to conversion |
During? June, 79,325 actual machine hours were logged during production.
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