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Yarmouth Company produces a liquid solvent in two departments: Mixing and Finishing. Accounting records at Yarmouth show the following information for Finishing operations for February
Yarmouth Company produces a liquid solvent in two departments: Mixing and Finishing. Accounting records at Yarmouth show the following information for Finishing operations for February (no new material is added in the Finishing Department).
WIP inventoryFinishing | ||
Beginning inventory (10,500 units, 20% complete with respect to Finishing costs) | ||
Transferred-in costs (from Mixing) | $ | 119,550 |
Finishing conversion costs | 7,615 | |
Current work (99,000 units started) | ||
Mixing costs | 920,700 | |
Finishing costs | 460,690 | |
The ending inventory has 14,500 units, which are 50 percent complete with respect to Finishing Department costs and 100 percent complete for Mixing Department costs.
Required:
Complete the production cost report using the weighted-average method.
10,500 99,000 109,500 Units to be accounted for: Beginning WIP inventory Units started this period Total units to account for Units accounted for: Completed and transferred out Units in ending inventory Mixing Finishing Total units accounted for 14,500 14,500 0 Total Mixing Department Finishing Department $ 0 $ 0 $ Flow of costs: Costs to be accounted for: Costs in beginning WIP inventory Current period costs Total costs to be accounted for Cost per equivalent unit Mixing Finishing Costs accounted for: Costs assigned to units transferred out Costs of ending WIP inventory Total costs accounted for $ 0 $ 0 $ 0Step by Step Solution
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