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SCENARIO: WEIGHTED AVERAGE: NORMAL LOST UNITS - UNEVEN APPLICATION OF COST Problem IV: Prepare Cost of Production Reports for all the departments. Nintendo Products, Inc.
SCENARIO: WEIGHTED AVERAGE: NORMAL LOST UNITS - UNEVEN APPLICATION OF COST
Problem IV: Prepare Cost of Production Reports for all the departments. Nintendo Products, Inc. has two processing departments, Grinding and Blending. The Grinding Department adds all materials at the start of the process and a unit loss in unavoidable at the end of processing. The Blending Department adds 50% of materials needed at the start of the process and 50% when 1/2 completed. Lost units are encountered throughout the process. Production data are as follows: Grinding Department Blending Department In process, March 1 3,000 2/3 12,000 4/5 Transferred to the next department 18,000 22,000 In process, March 31 1,500 1/3 6,000 1/3 Lost units 500 2,000 Cost Data: 110,700 Work in process, September 1 Cost from preceding department Cost this department: Materials Labor 14,700 7,400 35,730 19,120 Overhead Cost added: Materials 5,300 75,300 38,200 34,600 15,020 44,270 32,240 27,220 Labor Overhead Problem IV: Prepare Cost of Production Reports for all the departments. Nintendo Products, Inc. has two processing departments, Grinding and Blending. The Grinding Department adds all materials at the start of the process and a unit loss in unavoidable at the end of processing. The Blending Department adds 50% of materials needed at the start of the process and 50% when 1/2 completed. Lost units are encountered throughout the process. Production data are as follows: Grinding Department Blending Department In process, March 1 3,000 2/3 12,000 4/5 Transferred to the next department 18,000 22,000 In process, March 31 1,500 1/3 6,000 1/3 Lost units 500 2,000 Cost Data: 110,700 Work in process, September 1 Cost from preceding department Cost this department: Materials Labor 14,700 7,400 35,730 19,120 Overhead Cost added: Materials 5,300 75,300 38,200 34,600 15,020 44,270 32,240 27,220 Labor OverheadStep by Step Solution
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