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Weighted Average Process Costing Minot Processing Company manufactures one product on a continuous basis in two departments, Processing and Finishing. All materials are added at

Weighted Average Process Costing Minot Processing Company manufactures one product on a continuous basis in two departments, Processing and Finishing. All materials are added at the beginning of work on the product in the Processing Department. During December 2009, the following events occurred in the Processing Department:

Units started 16,000 units
Units completed and transferred to Finishing Department 15,000 units

Costs assigned to processing: Raw materials (one unit of raw materials for each unit of product started) $142,900
Manufacturing supplies used 18,000
Direct labor costs incurred 51,000
Supervisors' salaries 12,000
Other production labor costs 14,000
Depreciation on equipment 6,000
Other production costs 18,000

Additional information follows:

  • Minot uses weighted average costing and applies manufacturing overhead to Work-in-Process at the rate of 100 percent of direct labor cost.
  • Ending inventory in the Processing Department consists of 3,000 units that are one-third converted.
  • Beginning inventory contained 2,000 units, one-half converted, with a cost of $33,900 ($19,100 for materials and $14,800 for conversion).

(a) Prepare a cost of production report for the Processing Department for December.

Summary of units in process:
Beginning Answer
Units started Answer
In process Answer
Completed Answer
Ending Answer
Equivalent units in process: Materials Conversion Total
Units completed Answer Answer
Plus equivalent units in ending inventory Answer Answer
Equivalent units in process Answer Answer
Total cost to be accounted for and cost per equivalent unit in process:
Beginning work-in-process $Answer $Answer $Answer
Current costs Answer Answer Answer
Total cost in process $Answer $Answer $Answer
Equivalent units in process Answer Answer
Cost per equivalent unit in process $Answer $Answer $Answer
Accounting for total costs:
Transferred out $Answer
Ending work-in-process:
Materials $Answer
Conversion Answer Answer
Total cost accounted for $Answer

(b) Prepare an analysis of all changes in Work-in-Process.

Work-in-process:
Beginning $Answer
Current manufacturing costs:
Direct materials $Answer
Direct labor Answer
Applied overhead Answer Answer
Total $Answer
Cost of goods manufactured Answer
Ending $Answer

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