Beginning work-in-progress inventory on June 1 had 250,000 units made up of the

Question

Beginning work-in-progress inventory on June 1 had 250,000 units made up of the following: Degree of Completion Prior department costs transferred in from the Forming Department Costs added by the Steril- ization Department: Direct materials Direct labor Manufacturing overhead $387,600 100% 317,200 100% 120,050 | 40% 67.100 | 30% $504,350 $891,950 Work in process, June 1 During June, 580,000 units were transferred in from the Forming Department at a cost of $1,870,000. The Assembling Department added the following costs: $974,800 318,600 Direct materials Direct labor Manufacturing overhead Total costs added $1,495,400 Assembling finished 480,000 units and transferred them to the Sterilization Department. At June 30, the number of units in ending work-in-progress inventory was 350,000. The degree of completion of work-in-process inventory at June 30 was as indicated below: Direct materials Direct labor Manufacturing overhead 80% 65 30 A. Prepare a correctly formatted (including heading) production cost report (see Exhibit 8.11 as a example report) using the weighted-average method.

Explanation / Answer

WORKINGS:

UNITS TO ACCOUNT FOR: Whole units Beginning WIP 250000 Units introduced during the period 580000 Total units to account for 830000 UNITS ACCOUNTED FOR: Equivalent Units Transferred in costs Direct Material Direct Labor Mfg Overhead Units completed and transferred 480000 480000 480000 480000 480000 Ending WIP 350000 350000 280000 227500 105000 Total units accounted for 830000 830000 760000 707500 585000 Transferred in costs Direct Material Direct Labor Mfg Overhead Total Cost Beginning WIP cost 387600 317200 120050 67100 891950 Costs added during the period 1870000 974800 318600 202000 3365400 Total costs to account for 2257600 1292000 438650 269100 4257350 Cost per equivalent unit 2.72 1.70 0.62 0.46 5.50 COSTS ACCOUNTED FOR: Cost of units completed and transferred out 1305600 816000 297600 220800 2640000 Cost of ending WIP 952000 476000 141050 48300 1617350 Total costs accounted for 2257600 1292000 438650 3988250 4257350

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