Dolls manufactures dolls. Materials are added at the beginning of the process an

Question

Dolls manufactures dolls. Materials are added at the beginning of the process and conversion
costs are incurred evenly throughout the process. Data for July follows:
Production Data
Units Percent Complete
Units in process, July 1 120 75%
Units started into production 380
Units in process, July 31 100 50%
Cost Data
Work in process, July 1: Costs added during the
month:
Materials $1,000 Materials $4,000
Labour 500 Labour 300
Manufacturing overhead 750 Manufacturing overhead 2,500
Required:
Using the weighted average method, prepare a production cost report for the company

Explanation / Answer

Using the weighted average method, prepare a production cost report for the company

Physical unit Direct material Conversion cost Units to be accounted for Beginning work in process 120 Unit started 380 Total units 500 Units accounted for Transferred out 400 400 400 Ending work in process 100 100 50 Total Unit 500 500 450 COSTS Unit cost Material Conversion Total Beginning work in process 1000 1250 2250 Cost added 4000 2800 6800 Total cost 5000 4050 9050 Equivalent unit 500 450 Unit cost 10 9 19 Cost to be accounted for Beginning work in process 2250 Started into production 6800 Total cost 9050 Cost reconciliation schedule Cost accounted for Cost of units transferred out 7600 Ending work in process Material 1000 Conversion 450 1450 Total cost accounted for 9050

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