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Douglas Toys is a manufacturer that uses the weighted-average process costing method to account for costs of production. It produces a plastic toy in three
Douglas Toys is a manufacturer that uses the weighted-average process costing method to account for costs of production. It produces a plastic toy in three separate departments: Molding, Assembling, and Finishing. The following information was obtained for the Assembling Department for the month of September. |
Work in process on September 1 had 107,000 units made up of the following: |
Amount | Degree of Completion | |||||
Prior department costs transferred in from the Molding Department | $ | 145,520 | 100 | % | ||
Costs added by the Assembling Department | ||||||
Direct materials | $ | 96,300 | 100 | % | ||
Direct labor | 36,169 | 70 | % | |||
Manufacturing overhead | 19,012 | 50 | % | |||
$ | 151,481 | |||||
Work in process, September 1 | $ | 297,001 | ||||
During September, 507,000 units were transferred in from the Molding Department at a cost of $689,520. The Assembling Department added the following costs: |
Direct materials | $ | 437,670 | ||||||
Direct labor | 164,241 | |||||||
Manufacturing overhead | 74,808 | |||||||
Total costs added | $ | 676,719 | ||||||
Assembling finished 407,000 units and transferred them to the Finishing Department. |
At September 30, 207,000 units were still in work-in-process inventory. The degree of completion of work-in-process inventory at September 30 was as follows: |
Direct materials | 90 | % | ||||||
Direct labor | 80 | |||||||
Manufacturing overhead | 30 | |||||||
Required: | |
Prepare a production cost report using the weighted-average method. |
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