The following information pertains to the mixing department of Pharoah Paint Pro
ID: 2429577 • Letter: T
Question
The following information pertains to the mixing department of Pharoah Paint Products for May 2012:
Cost of work-in-process, on May 1, in the mixing department were as follows:
The costs added by the mixing department during May were as follows:
Prepare a cost of production report using the weighted average method.
UNITS Work-in-process, May 1(100% complete, materials;
60% complete, labour and overhead) 4,500 Started during May 72,100 Work-in-process, May 31
(100% complete, materials;
40% complete, labour and overhead) 9,400
Explanation / Answer
Answers
PHAROAH PAINT PRODUCTS
COST OF PRODUCTION-MIXING DEPARTMENT FOR MAY, 2012
WEIGHTED AVERAGE METHOD
Unit Information
Units to account for:
Units in beginning work-in-process
4,500
Units started during May
72,100
Total units to account for
76,600
Equivalent Units
Physical Flow
Materials
Conversion
Units completed
67,200
100%
67,200
100%
67,200
Units in ending work-in-process
9,400
100%
9,400
40%
3,760
Total units accounted for
76,600
76,600
70,960
Cost Information: Calculation of Unit Costs
Cost to account for:
Materials
Conversion
Total
Costs in beginning work-in-process
$ 33,200.00
$ 39,900.00
$ 73,100.00
Costs added
$ 610,240.00
$ 378,764.00
$ 989,004.00
Total costs to account for
$ 643,440.00
$ 418,664.00
$ 1,062,104.00
Equivalent Units [from above]
76,600
70,960
Cost per equivalent unit
$ 8.40
$ 5.90
$ 14.30
Cost Information: Costs Transferred Out and Cost of Ending Inventory
Costs accounted for:
Transferred out
Ending Work-in-Process
Total
Units transferred out
[67200 x $14.3]
$ 960,960.00
$ 960,960.00
Work-in-process-ending inventory:
Materials
[9400 x $8.4]
$ 78,960.00
$ 78,960.00
Conversion
[3760 x $5.9]
$ 22,184.00
$ 22,184.00
Total costs accounted
$ 1,062,104.00
PHAROAH PAINT PRODUCTS
COST OF PRODUCTION-MIXING DEPARTMENT FOR MAY, 2012
WEIGHTED AVERAGE METHOD
Unit Information
Units to account for:
Units in beginning work-in-process
4,500
Units started during May
72,100
Total units to account for
76,600
Equivalent Units
Physical Flow
Materials
Conversion
Units completed
67,200
100%
67,200
100%
67,200
Units in ending work-in-process
9,400
100%
9,400
40%
3,760
Total units accounted for
76,600
76,600
70,960
Cost Information: Calculation of Unit Costs
Cost to account for:
Materials
Conversion
Total
Costs in beginning work-in-process
$ 33,200.00
$ 39,900.00
$ 73,100.00
Costs added
$ 610,240.00
$ 378,764.00
$ 989,004.00
Total costs to account for
$ 643,440.00
$ 418,664.00
$ 1,062,104.00
Equivalent Units [from above]
76,600
70,960
Cost per equivalent unit
$ 8.40
$ 5.90
$ 14.30
Cost Information: Costs Transferred Out and Cost of Ending Inventory
Costs accounted for:
Transferred out
Ending Work-in-Process
Total
Units transferred out
[67200 x $14.3]
$ 960,960.00
$ 960,960.00
Work-in-process-ending inventory:
Materials
[9400 x $8.4]
$ 78,960.00
$ 78,960.00
Conversion
[3760 x $5.9]
$ 22,184.00
$ 22,184.00
Total costs accounted
$ 1,062,104.00
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