Question
XXX company produces a product that passes through three processes: Fabrication, Assembly, and Finishing. All manufacturing costs are added uniformly for all processes. The following
XXX company produces a product that passes through three processes: Fabrication, Assembly, and Finishing. All manufacturing costs are added uniformly for all processes. The following information was obtained for the Fabrication Department for December:
a. Work in process, April 1, had 10,000 units (40 percent completed) and the following costs:
Direct materials $8,000
Direct labor $12,000
Overhead $4,000
b. During the month of April, 20,000 units were completed and transferred to the Assembly Department, and the following costs were added to production:
Direct materials $24,000
Direct labor: $16,000
Overhead: $12,000
c. On April 30, there were 5,000 partially completed units in process. These units were 80 percent complete.
REQUIRED
Prepare a cost of production report for the Fabrication Department for June using the weighted average method of costing. The report should disclose the physical flow of units, equivalent units, and unit costs and should track the disposition of manufacturing costs.
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