Question
Part b process costing Intrepid industries manufactures sterile parts used in medical equipment. The company uses the weighted-average process costing method to account for production
Part b process costing
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.
I took out pic, please be specific on what information is not clear. I couldn't reply to your post
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started