Question
Salanger Manufacturing Corporation produces a dandruff shampoo in three consecutive processes. The costs of Department 1 for June 2019 were as follows: Cost of beginning
Salanger Manufacturing Corporation produces a dandruff shampoo in three consecutive processes. The costs of Department 1 for June 2019 were as follows:
Cost of beginning inventory | ||
Direct material | $5,500 | |
Conversion costs | 12,740 | |
Costs added in Department 1: | ||
Direct material | $223,390 | |
Direct labor | 358,300 | |
Manufacturing overhead | 155,269 | 736,959 |
Department 1 handled the following units during June:
Units in process, June 1 | 2,000 |
Units started in Department 1 | 45,000 |
Units transferred to Department 2 | 46,000 |
Units in process, June 30 | 1,000 |
On average, the June 1 units were 40% complete; the June 30 units were 70% complete. Direct materials are added at the beginning of the process, and conversion costs occur evenly throughout the process in Department 1. Gomez uses the weighted average method for process costing.
Required
Prepare the product cost report for Department 1 for June.
Round average cost per equivalent unit to two decimal places. Use rounded answers for subsequent calculations. Round other answers to the nearest whole number.
Salanger Manufacturing Corporation produces a dandruff shampoo in three consecutive processes. The costs of Department 1 for June 2019 were as follows:
Cost of beginning inventory | ||
Direct material | $5,500 | |
Conversion costs | 12,740 | |
Costs added in Department 1: | ||
Direct material | $223,390 | |
Direct labor | 358,300 | |
Manufacturing overhead | 155,269 | 736,959 |
Department 1 handled the following units during June:
Units in process, June 1 | 2,000 |
Units started in Department 1 | 45,000 |
Units transferred to Department 2 | 46,000 |
Units in process, June 30 | 1,000 |
On average, the June 1 units were 40% complete; the June 30 units were 70% complete. Direct materials are added at the beginning of the process, and conversion costs occur evenly throughout the process in Department 1. Gomez uses the weighted average method for process costing.
Required
Prepare the product cost report for Department 1 for June.
Round average cost per equivalent unit to two decimal places. Use rounded answers for subsequent calculations. Round other answers to the nearest whole number.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started