1. 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.

   Required:

   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
   Units started
   Total units to account for
   Units accounted for:
   		Equivalent Units
   	Physical Flow	Direct Materials	Conversion Costs
   Units completed
   Units, ending work in process
   Total units accounted for
   Cost Information
   Costs to account for:
   	Direct Materials	Conversion Costs	Total
   Costs in beginning work in process	$	$	$
   Costs added by department
   Total costs to account for	$	$	$
   Cost per equivalent unit	$	$	$
   Costs accounted for:
   	Transferred Out	Ending Work in Process	Total
   Goods transferred out	$		$
   Ending work in process:
   Direct materials		$
   Conversion costs
   Total costs accounted for	$	$	$

   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
   Units started
   Total units to account for
   Units accounted for:
   		Equivalent Units
   	Physical Flow	Transferred In	Direct Materials	Conversion Costs
   Units completed
   Units, ending work in process
   Total units accounted for
   Cost Information
   Costs to account for:
   	Transferred In	Direct Materials	Conversion Costs	Total
   Costs in beginning work in process	$	$	$	$
   Costs added by department
   Total costs to account for	$	$	$	$
   Cost per equivalent unit	$	$	$	$
   Costs accounted for:
   		Transferred Out	Ending Work in Process	Total
   Goods transferred out		$		$
   Ending work in process:
   Transferred in			$
   Direct materials
   Conversion costs
   Total costs accounted for		$	$	$