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Practice problem Don't Cry Over Spilled Milk, Inc., a manufacturer of mops, uses the weighted average method in its processing costing system. Don't Cry uses
Practice problem Don't Cry Over Spilled Milk, Inc., a manufacturer of mops, uses the weighted average method in
its processing costing system. Don't Cry uses a normal costing system in the application of its
manufacturing overhead to production; MOH costs are applied to production on the basis of
machine hours logged during the period. Total budgeted MOH for the period was $ and total
budgeted machine hours were The following data concern the operations of the company's first
processing department, Assembly, for June
a Determine the cost of goods completed and transferred out of the Assembly department during
June.
b If Don't Cry fails to close MOH, will the company's reported Gross Profit be understated or
overstated?
c What value would be reported on the Balance Sheet for Work in ProcessAssembly at month end
June
d What would be the direct materials cost included in Work in ProcessAssembly at the beginning
of July?
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