Problem 6-47 Weighted-Average Method; Two Departments [LO 6-2, 6-4, 6-6] BDB Company manufactures its one product by a process that requires two departments. The production starts in Department A and is completed in Department B. Direct materials are added at the beginning of the process in Department A. Additional direct materials are added when the process is 50% complete in Department B. Conversion costs are incurred proportionally throughout the production processes in both departments. On April 1, Department A had 500 units in Work-in-Process estimated to be 30% complete for conversion, Department Bhad 300 units in Work-in-Process estimated to be 40% complete for conversion. During April, Department A started 2,000 units and completed 2,100 units, Department B completed 2,000 units. The ending Work-in-Process Inventory on April 30 in Department A is estimated to be 50% complete for conversion, and the ending Work-in-Process Inventory in Department B is estimated to be 70% complete for conversion. The cost sheet for Department A shows that the units in the beginning Work-in-Process Inventory had $4,510 in direct materials costs and $1,910 in conversion costs. The production costs incurred in April were $20,240 for direct materials and $25,000 for conversion. Department B's beginning Work-in-Process Inventory on April 1 was $3,412, of which $1,800 was transferred-in costs; it incurred $41,760 in direct materials costs and $26,546 in conversion costs in April. BDB Company uses the weighted average method for Departments A and B. Required: 1. Prepare a production cost report for Department A. 2. Prepare a production cost report for Department B. BDB Company -- Department A Production Cost Report Production Information Equivalent Units Physical Completion Percentage Direct Conversion Materials Units 500 150 30% 70% 2,000 500 2,000 2,5001 2,500 Input: Beginning WIP Units started or Trans-in Total units to account for Output: Units Finished and Trans-out Ending WIP Total units accounted for Equivalent unitsWTAVG 2,100 400 2,500 50% 50 % Direct Conversion Cost Added: Beginning WIP Current Costs Total Divide hv equivalent units Unit Cost Determination - Weighted Average Materials Total | $ 4,510 $ 1,910 $ 6,420 20,240 25,000 45,240 $ 24,750 $ 26,910 $ 51,660 T T T www . v.. .v.. vvy Direct Materials $ 4,510 20,240 $ 24,750 Cost Added: Beginning WIP Current Costs Total Divide by equivalent units WTAVG costs per equivalent units Conversion $ 1,910 25,000 $ 26,910 $ Total 6,420 45,240 51,660 $ Cost Assignment Trans-Out Units in Ending Work- in-Process Total Units Completed: Units transferred out: WIP, ending inventory Direct Materials Conversion Total Costs to Account For 0 $ uired 1 Required 2 > UUVVTunny-wupun Production Cost Report Production Information Equivalent Units Direct Physical Units Trans. In Conversion Conversion Completion Percentage 40 % Materials 3007 2,000 2,300 2,000 Beginning WIP Units started or trans-in Total units to account for Units finished or trans-out Ending WIP Transferred in Direct materials Conversion Total units accounted for 70% 2,000 Unit Cost Determination Direct Cost Added: Conversion Total $ 26,546 Beginning WIP Current costs Total Divide by equivalent units WTAVG - costs per EU Trans. In Materials $ 3,412 $ 41,760 1,8001 $ 5,212 $ 41,760 $ 26,546 $ $ 41,760 $ 26,546 Beginning WIP Current costs Total Divide by equivalent units WTAVG - costs per EU 3,412/ $ 1,800 5,212 $ $ 41,760 $ 26,546 $ Cost Assignment Completed and Ending WIP Trans-out Total Units completed Ending WIP inventory Trans-in Direct materials Conversion Total cost accounted for 0 $
