Horngren Woolens is a manufacturer of wool cloth. The information for December is as follows:

Beginning work in process 10,000 units

Units started 35,000 units

Units completed 28,000 units

Beginning work-in-process direct materials $18 ,000

Beginning work-in-process conversion $ 26,200

Direct materials added during month $144,000

Direct manufacturing labor during month $20,000

Factory overhead during month $ 51,425

Beginning work in process was half converted as to labor and overhead. Direct materials are added at the beginning of the process. All conversion costs are incurred evenly throughout the process. Ending work in process was 65% complete.

Required:

Prepare a production cost worksheet using the weighted-average method.

Answer: PRODUCTION COST WORKSHEET

Flow of production Physical Units Direct Materials Conversion

Work in process, beginning 10,000

Started during period 35,000

To account for 45,000

Units completed 28,000

Work in process, ending 17,000

Accounted for 45,000

Costs Totals Direct Materials Conversion

Work in process,beginning

Costs added during period

Total costs to account for

Divided by equivalent units

Equivalent unit costs

Assignment of costs - Units Cost per unit Amount

Transferred out

Work in process, ending

Direct materials

Conversion

Costs accounted for