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Welghted 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.
Welghted 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 gallons4,000 capsules Costs Direct materials Direct labor Overhead Transferred in $120 $32 128 20 140 Current production: Transferred out 125 gallons 198,000 capsules Ending inventory 6000 Costs to account for Direct Materials Conversion Total Costs Costs in beginning work in process Costs added by department Total costs to account for SL 1 Cost per equivalent unit Costs accounted for: EndingTota Transferred Work inTotal Out Process Goods transferred out s] : 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 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 Transferred Materials Coss Conversion In Units completed Units, ending work in process Total units accounted for Costs to account for: Transferred Materials Costs Conversion Total In ( $1-1 Costs in beginning work in process $ Costs added by department Total costs to account for
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