Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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)

$142,900.00

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 $34,500 ($24,500 for materials and $10,000 for conversion).

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

Minot Processing Company: Processing Department

Cost of Production Report

For the Month Ending December 31, 2009

Summary of units in process:

Beginning

Units started

In process

Completed

Ending

Equivalent units in process:

Materials

Conversion

Total

Units completed

Plus equivalent units in ending inventory

Equivalent units in process

Total cost to be accounted for and

cost per equivalent unit in process:

Beginning work-in-process

$

$

$

Current costs

Total cost in process

$

$

$

Equivalent units in process

+

+

Cost per equivalent unit in process

$

$

$

Accounting for total costs:

Transferred out

$

Ending work-in-process:

Materials

$

Conversion

Total cost accounted for

$

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

Work-in-process:

Beginning

$

Current manufacturing costs:

Direct materials

$

Direct labor

Applied overhead

Total

$

Cost of goods manufactured

Ending

$

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Management Accounting

Authors: John Burns, Martin Quinn, Liz Warren, João Oliveira

1st Edition

0077121619, 978-0077121617

More Books

Students also viewed these Accounting questions

Question

Detailed note on the contributions of F.W.Taylor

Answered: 1 week ago