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Nikko Paint produces high quality exterior paint and uses process costing. There are two processing departments: Blending and Packaging. In the Packaging Department, direct materials
Nikko Paint produces high quality exterior paint and uses process costing. There are two processing departments: Blending and Packaging. In the Packaging Department, direct materials are added at the end of the process. Conversion costs are added evenly throughout each process. The weighted-average method of process costing is used. Data from October for the Packaging Department are as follows: Packaging Department Units: Beginning work in process: 450 cans Transferred in from the Blending Dept. during October: 2,630 cans Completed and transferred out during the period: 2,900 cans Ending work in process (65% complete as to conversion work): 180 cans Costs: $2,227.5 Beginning work in process (transferred in cost, $2,070; conversion costs, $157.5) Transferred in from the Blending Dept. during October $12,098 Materials cost added during October $2,610 Conversion costs added during October $1,954.4 Requirements 1. Prepare a timeline for Packaging Department. (0.5 point) 2. Prepare a production cost report for the Packaging Department in November. (3.0 points)
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