Question
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.
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