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 $500,000 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 |
|
During June, 76,021 actual machine hours were logged during production.
(round all calculation to 2 decimal places. all answers should include commas and 2 decimal places i.e. 1,000.00 not
1000.)
1) The cost to assemble one mop in June was $_____.
2) The cost of goods completed and transferred out of the Assembly department during June equals $_____.
3) The conversion costs included in Work in Process-Assembly at the beginning of July would equal $_____.
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