Problem 16-6A (Part Level Submission)

Hamilton Processing Company uses a weighted-average process cost system and manufactures a single product-an industrial carpet shampoo and cleaner used by many universities. The manufacturing activity for the month of October has just been completed. A partially completed production cost report for the month of October for the Mixing and Cooking department is as follows.

(a)

Prepare (the word prepare is in the question) a schedule that shows how the equivalent units were computed so that you can complete the "Quantities: Units accounted for" equivalent units section shown in the production cost report, and compute October unit costs. (Round unit costs to 2 decimal places, e.g. 2.25.)

HAMILTON PROCESSING COMPANY

Mixing and Cooking Department

Production Cost Report

For the month ended October 31

Equivalent Units

Quantities Physical Units Materials Conversion Costs

Units to be accounted for

Work in process, October 1

(all materials, 70% conversion 23,000

costs)

Started into production 172,500

Total units 195,500

Units accounted for

Transferred out 138,000 {answer} {answer}

Work in process, October 31

(60% materials, 40% 57,500 {answer} {answer}

conversion costs}

Total units accounted for 195,500 {answer} {answer}

Costs Materials Conversion Costs Total

Unit costs

Total Costs $276,000 $120,750 $396,750

Equivalent units {answer} {answer}

Unit costs $ $ $

Costs to be accounted for

Work in process, October 1 $34,500

Started into production 362,250

Total costs $396,750

(b)

Complete the "Cost Reconciliation Schedule" part of the production cost report below.

Cost Reconciliation Schedule

Costs accounted for

Transferred out $

Work in process, October 31

Materials $

Conversion costs {answer} {answer}

Total costs $