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 November, the following events occurred in the Processing Department:

Units started	20,000 units
Units completed and transferred to Finishing Department	21,000 units

Costs assigned to processing
Raw materials (one unit of raw materials for each unit of product started)	$350,000
Manufacturing supplies used	25,000
Direct labor costs incurred	182,000
Supervisors' salaries	15,000
Other production labor costs	18,000
Depreciation on equipment	12,000
Other production costs	95,000

Additional information follows:

• Minot uses weighted average costing and applies manufacturing overhead to Work-in-Process at the rate of 90% of direct labor cost.
• Ending inventory in the Processing Department consists of 3,000 units that are one-fourth converted
• Beginning inventory contained 4,000 units, one-half converted, with a cost of $57,950 ($34,000 for materials and $23,950 for conversion).

• Cost of Production Report
• Work-in-Process Analysis

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

• Do not use negative signs with any of your answers.
• Round Cost per equivalent unit in process to two decimal places, if needed.

Processing Department Cost of Production Report For the Month of November

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

• Work-in-Process Analysis

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

Do not use negative signs with any of your answers.

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