Process Costing

Chemco Incorporated manufacturers a single product that passes through four sequential processes. Accounting and production data for August for Department 3 of the operation are as follows:

Production Statistics

Work-in-process August 1 Received from Department 2 Transferred to Department 4 Work-in-process August 31 (Materials 100% complete; conversion 30% complete) Units spoiled (normal:1600 units; abnormal:400 units)

Units 2,000 70,000 ? 6,000 2,000

Accounting Data

Work-in-process beginning inventory: Transferred-in costs Materials Conversion costs Total

$5,600 2,500 2,880 $10,980

Costs of the current period: Transferred-in costs Materials Conversion costs Total

$206,500 91,000 240,900 $538,400

Materials are added at the beginning of the process in Department 3. Inspection occurs at the 100% completion stage.

REQUIRED:

Prepare a cost of production report (in good form) for Department 3 using the Weighted- Average method of process costing. (Carry your unit cost calculations to four (4) decimal places.)