Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Intrepid industries manufactures sterile parts used in medical equipment. The company uses the weighted-average process costing method to account for production costs. It produces parts

Intrepid industries manufactures sterile parts used in medical equipment. The company uses the weighted-average process costing method to account for production costs. It produces parts in three different departments: Forming, Sterilization, and Assembling. The following information was reported for the assembling department for the month of June:

amount

Degree of completion

Prior department costs transferred in from the forming

$387,600

100%

Costs added by the sterilization department:

Direct materials

$317.200

100%

Direct labor

$120,050

40%

Manufacturing overhead

$67100

30%

$504350

Wip June 1

$891950

During June, 580000 units were transferred in from the forming department at a cost of $1,870,000. The Assembling Dept added the following costs:

Direct materials

$974800

Direct labor

$318600

Manufacturing overhead

$202000

Total costs added

$1,495,4000

Assembling finished 480000 units and transferred them to the sterilization dept. At June 30 225000 units were still in wip inventory. The degree of completion of WIP inventory at June 30 was as indicated below:

Direct materials

80%

Direct labor

65%

Manufacturing overhead

30%

A. Prepare a correctly formatted (including heading) production cost report using the weighted average method.

Step by Step Solution

3.45 Rating (145 Votes )

There are 3 Steps involved in it

Step: 1

A Production Report using the weighted average method Physical u... blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Cornerstones Of Cost Management

Authors: Don R. Hansen, Maryanne M. Mowen

3rd Edition

9781305147102, 1285751787, 1305147103, 978-1285751788

More Books

Students also viewed these Accounting questions