This is the case:

"I think we goofed when we hired that new assistant controller,"said Ruth Scarpino, president of Provost Industries. Just look at this report that he prepared for last month for the Finishing Department. I cant make heads or tails out of it.

Finishing Department costs:

Work in process inventory, April 1, 450unit; materials 100%

compleete; conversion 60% complete..............................................$8,208 *

Cost transferred in during the month from the

preceding dept, 1,950 units......................................................... 17,940

Materials cost added during the month............................................. 6,210

Conversion cost incurred during the month........................................ 13,920

Total Dept cost .......................................................................$46,278

Finishing Department Cost assigned to :

Units completed and transferred to Finished goods,

1,800 units at $25.71 per unit.....................................................$46,278

Work in process inventory April 30, 600 units; materials

0% complete;conversion 35% complete............................................. 0

Total Dept cost assigned ............................................................ $ 46,278

* Consist of cost transferred in $4,068; materials cost, $1,980 and conversion cost , $2,160

"He's strugggling to learn our system,"replied Frank Harrop, the operations manager. The problem is that he's been away from process costing for a long time, and its coming back slowly. "Its not just the format of his report that Im concerned about. Look at that $25.71 unit cost that he's come up with for Appril. Doesent seem high to you? said Ms Scarpino.

Yes it does seem high but on the other hand , i know we had increase in materials prices during April and that may be the explanation, replied Mr Harrop. I'll get someone else to redo this report then we may be able to see what going on.

Provost Industries manufactures a ceramic product that goes through two processing departments- molding and Finishing. The company uses weighted average method in the process costing.

REQUIRED:

1) Prepare a report for the Finishing Department showing how much cost should have been assigned to the units completed and transferred to finished goods and how much cost should have been assigned to ending work in process inventory in the Finishing Department.

2) Explain to the president why the unit cost of new assistant controllers report is so high.