Weighted Average Method, Two-Department Analysis, Change in Output Measure

Healthway uses a process-costing system to compute the unit costs of the minerals that it produces. It has three departments: Mixing, Tableting, and Bottling. In Mixing, at the beginning of the process all materials are added and the ingredients for the minerals are measured, sifted, and blended together. The mix is transferred out in gallon containers. The Tableting Department takes the powdered mix and places it in capsules. One gallon of powdered mix converts to 1,600 capsules. After the capsules are filled and polished, they are transferred to Bottling where they are placed in bottles, which are then affixed with a safety seal and a lid and labeled. Each bottle receives 50 capsules.

During July, the following results are available for the first two departments (direct materials are added at the beginning in both departments):

		Mixing			Tableting
Beginning inventories:
Physical units		5	gallons		4,000	capsules
Costs:
Direct materials		$120			$32
Direct labor		128			20
Overhead		?			?
Transferred in					140
Current production:
Transferred out		125	gallons		198,000	capsules
Ending inventory		6			6000
Costs:
Direct materials		$3,144			$1,584
Transferred in					?
Direct labor		4,096			1,944
Overhead		?			?
Percentage of completion:
Beginning inventory		40	%		50	%
Ending inventory		50			40

Overhead in both departments is applied as a percentage of direct labor costs. In the Mixing Department, overhead is 200 percent of direct labor. In the Tableting Department, the overhead rate is 150 percent of direct labor.

1. Prepare a production report for the Mixing Department using the weighted average method. Follow the five steps outlined in the chapter. If required, round your cost per equivalent unit answers to three decimal places and use them in subsequent computations. Round all other calculations and final answers to the nearest dollar.

Healthway
Mixing Department
Production Report for July 20XX
Unit Information
Units to account for:
Units, beginning work in process			fill in the blank cd4638faefa6fd7_1
Units started			fill in the blank cd4638faefa6fd7_2
Total units to account for			fill in the blank cd4638faefa6fd7_3
Units accounted for:
		Equivalent Units
	Physical Flow	Direct Materials	Conversion Costs
Units completed	fill in the blank cd4638faefa6fd7_4	fill in the blank cd4638faefa6fd7_5	fill in the blank cd4638faefa6fd7_6
Units, ending work in process	fill in the blank cd4638faefa6fd7_7	fill in the blank cd4638faefa6fd7_8	fill in the blank cd4638faefa6fd7_9
Total units accounted for	fill in the blank cd4638faefa6fd7_10	fill in the blank cd4638faefa6fd7_11	fill in the blank cd4638faefa6fd7_12
Cost Information
Costs to account for:
	Direct Materials	Conversion Costs	Total
Costs in beginning work in process	$fill in the blank cd4638faefa6fd7_13	$fill in the blank cd4638faefa6fd7_14	$fill in the blank cd4638faefa6fd7_15
Costs added by department	fill in the blank cd4638faefa6fd7_16	fill in the blank cd4638faefa6fd7_17	fill in the blank cd4638faefa6fd7_18
Total costs to account for	$fill in the blank cd4638faefa6fd7_19	$fill in the blank cd4638faefa6fd7_20	$fill in the blank cd4638faefa6fd7_21
Cost per equivalent unit	$fill in the blank cd4638faefa6fd7_22	$fill in the blank cd4638faefa6fd7_23	$fill in the blank cd4638faefa6fd7_24
Costs accounted for:
	Transferred Out	Ending Work in Process	Total
Goods transferred out	$fill in the blank cd4638faefa6fd7_25		$fill in the blank cd4638faefa6fd7_26
Ending work in process:
Direct materials		$fill in the blank cd4638faefa6fd7_27	fill in the blank cd4638faefa6fd7_28
Conversion costs		fill in the blank cd4638faefa6fd7_29	fill in the blank cd4638faefa6fd7_30
Total costs accounted for	$fill in the blank cd4638faefa6fd7_31	$fill in the blank cd4638faefa6fd7_32	$fill in the blank cd4638faefa6fd7_33

2. Prepare a production report for the Tableting Department. Materials are added at the beginning of the process. Follow the five steps outlined in the chapter. If required, round your cost per equivalent unit answers to four decimal places and use them in subsequent computations. Round all other calculations and final answers to the nearest dollar.

Healthway
Tableting Department
Production Report for July 20XX
Unit Information
Units to account for:
Units, beginning work in process				fill in the blank 039797ffefb9fad_1
Units started				fill in the blank 039797ffefb9fad_2
Total units to account for				fill in the blank 039797ffefb9fad_3
Units accounted for:
		Equivalent Units
	Physical Flow	Transferred In	Direct Materials	Conversion Costs
Units completed	fill in the blank 039797ffefb9fad_4	fill in the blank 039797ffefb9fad_5	fill in the blank 039797ffefb9fad_6	fill in the blank 039797ffefb9fad_7
Units, ending work in process	fill in the blank 039797ffefb9fad_8	fill in the blank 039797ffefb9fad_9	fill in the blank 039797ffefb9fad_10	fill in the blank 039797ffefb9fad_11
Total units accounted for	fill in the blank 039797ffefb9fad_12	fill in the blank 039797ffefb9fad_13	fill in the blank 039797ffefb9fad_14	fill in the blank 039797ffefb9fad_15
Cost Information
Costs to account for:
	Transferred In	Direct Materials	Conversion Costs	Total
Costs in beginning work in process	$fill in the blank 039797ffefb9fad_16	$fill in the blank 039797ffefb9fad_17	$fill in the blank 039797ffefb9fad_18	$fill in the blank 039797ffefb9fad_19
Costs added by department	fill in the blank 039797ffefb9fad_20	fill in the blank 039797ffefb9fad_21	fill in the blank 039797ffefb9fad_22	fill in the blank 039797ffefb9fad_23
Total costs to account for	$fill in the blank 039797ffefb9fad_24	$fill in the blank 039797ffefb9fad_25	$fill in the blank 039797ffefb9fad_26	$fill in the blank 039797ffefb9fad_27
Cost per equivalent unit	$fill in the blank 039797ffefb9fad_28	$fill in the blank 039797ffefb9fad_29	$fill in the blank 039797ffefb9fad_30	$fill in the blank 039797ffefb9fad_31
Costs accounted for:
		Transferred Out	Ending Work in Process	Total
Goods transferred out		$fill in the blank 039797ffefb9fad_32		$fill in the blank 039797ffefb9fad_33
Ending work in process:
Transferred in			$fill in the blank 039797ffefb9fad_34	fill in the blank 039797ffefb9fad_35
Direct materials			fill in the blank 039797ffefb9fad_36	fill in the blank 039797ffefb9fad_37
Conversion costs			fill in the blank 039797ffefb9fad_38	fill in the blank 039797ffefb9fad_39
Total costs accounted for		$fill in the blank 039797ffefb9fad_40	$fill in the blank 039797ffefb9fad_41	$fill in the blank 039797ffefb9fad_42