Please label and present all work in an organized fashion. Show supporting work.

Description

This studies product costing using a process costing system.

Learning objectives

Use the weighted average method of process costing.

Apply process costing methods to cases with transferred in costs.

Directions

The Lamarie Factory manufactures expensive boots in a two department production environment. Production starts in the tanning department and is completed in the finishing department. All direct materials are added in the tanning department. A partial list of data for the month follows:

Beginning work in process Tanning Finishing

Units not available 4,000

% Complete as to direct materials 100% 100%

% Complete as to conversion costs 40% 60%

Direct materials / Transferred in costs $6,000 $7,000

Conversion costs $18,000 $10,000

Current month production

Units started in production not available not available

Units completed and transferred out 16,000 18,000

Direct materials / Transferred in costs added $18,000 not available

Conversion costs added $32,000 $19,000

Costs transferred out $50,000 not available

Ending work in process

Units not available 2,000

% Complete as to direct materials 100%

% Complete as to conversion costs not available 30%

Required:

Prepare a units of production schedule for the FINISHING department that details units to account for, units accounted for and equivalent full units of production.