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Hamilton Processing Company uses a weighted-average process cost system and manu

ID: 2465821 • Letter: H

Question

Hamilton Processing Company uses a weighted-average process cost system and manufactures a single product—a premium rug shampoo and cleaner. The manufacturing activity for the month of October has just been completed. A partially completed production cost report for the month of October for the mixing and cooking department is shown below.

(a)

HAMILTON PROCESSING COMPANY
Mixing and Cooking Department
Production Cost Report
For the Month Ended October 31

Equivalent Units

Quantities

Physical
Units


Materials

Conversion
Costs

Units to be accounted for

   Work in process, October 1
   (all materials, 70% conversion costs)

22,740

   Started into production

170,550

      Total units

193,290

Units accounted for

   Transferred out

136,440

   Work in process, October 31
   (60% materials, 40% conversion costs)

56,850

      Total units accounted for

193,290


Costs


Materials

Conversion
Costs


Total

Unit costs

   Total Costs

$272,880

$119,385

$392,265

   Equivalent units

   Unit costs

Costs to be accounted for

   Work in process, October 1

$34,110

   Started into production

358,155

      Total costs

$392,265

Hamilton Processing Company uses a weighted-average process cost system and manufactures a single product—a premium rug shampoo and cleaner. The manufacturing activity for the month of October has just been completed. A partially completed production cost report for the month of October for the mixing and cooking department is shown below.

Explanation / Answer


Equivalent Units Physical units Material conversion costs Units to be accounted for: WIP Oct. 1 22740 - 6822 (30%) Units started into production 170550 Total Units 193290 Units Accounted for: Transferred out 136440 136440 136440 WIP Oct 31 56850 34110 (60%) 22740 (40%) Equivalent units 170550 159180 Costs Material Conversion Costs Total Unit Cost: Total Cost 272880 119385 392265 Equivalent Units 170550 159180 Unit Cost 1.60 0.75 Cost to be accounted for: Work in Process Oct 1 34110 Started into production 358155 Total costs $392265
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