Question

P3-6A Hamilton Processing Company uses a weighted-average process cost system and manufactures a single product-an industrial carpet shampoo and cleaner used by many universities. The manufacturing activity for the month of October has just been com- pleted. A partially completed production cost report for the month of October for the Mixing and Cooking Department is shown on page 130. Instructions (a) Prepare a schedule that shows how the equivalent units were computed so that you can complete the "Quantities: Units accounted for" equivalent units section shown in the production cost report, and compute October unit costs. (b) Complete the "Cost Reconciliation Schedule" part of the production cost report.

Answer 1

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 Started into production 22600 169500 192100 Total units Units accounted for 135600 56500 192100 135600 33900 169500 Transferred out 135600 22600 158200 Work in process, October 31 Total units Materials Conversion Costs Total Unit costs Total Costs 271,200 169,500 1.60 118,650 158,200 0.75 389,850 Equivalent units Unit costs 2.35 Cost Reconciliation Schedule Costs to be accounted for Work in process, October 1 Started into production 33,900 355,950 389,850 Total costs Costs accounted for Transferred out 318,660 Work in process, October 31 Mixing Materials Conversion costs 54,240 16,950 71,190 389,850 Total costs