Question 2:

The Stone Company manufactures a high-quality concrete block in two departments, mixing and molding. Materials are introduced at various points during work in the mixing department. After the mixing of the materials is complete, they are transferred to the molding department where the block is formed. Materials are accounted for in the mixing department on a kilograms basis. Conversions costs are incurred evenly during the mixing process.

Selected data relating to the mixing department during May, 2020 are given below:

Production data:

Kilograms in process, May 1: 100% materials, 90% conversion 70,000

Kilograms placed into production during May 350,000

Kilograms completed and transferred out to the molding department ?

Kilograms in process, May 31: 75% materials, 25% conversion 40,000

Cost data:

Work in process, May 1:

Material cost $86,000

Conversion cost 36,000

Costs added during May:

Material costs 447,000

Conversion costs 198,000

Required:

Prepare the cost of production report for the Mixing Department for the month of May. The company uses the weighted average cost method in all its departments.