Question

urnt Ham Company uses the weighted-average method in its process costing system. The Curing Department of Burnt Ham Company reported the following information for the month of November: Beginning work in process: 30% complete for materials, and 80% complete for conversion. Ending work in process: 40% complete for materials, and 70% complete for conversion. Cost Summary Materials Conversion Work in process, November 1 $ 34,500( Materials ) $ 48,600 (conversion ) Added during November $146,000 (material ), $194,400 (conversion). Units Work in process, November 1 10,000 Started in November 28,000 Total 38,000 Work in process November 30 8,000 Completed and transferred out (You calculate this number.) Required: Prepare a Production Report for the company’s November production using the weighted-average method. You will need to include the following:

Units to account for T

he equivalent units of production for materials and conversion

The cost per equivalent unit for materials and conversion (Round to three decimals. There will be a small final rounding error.)

The total cost assigned to units transferred out of the Curing Dept. during November (Costs must be in dollars and cents. If you do this on Excel, then be careful when using formulas. Excel carries far more than three digits no matter how many are displayed.)

The total cost of the work in process inventory on November 30 (Costs must be in dollars and cents.)

A cost reconciliation

Answer 1

Solution 1:

Ham Company
Production Cost report - Curing Department
Computation of Equivalent unit of Production
Particulars	Physical Units	Material	Conversion
Units to account for:
Beginning WIP	10000
Started into Production	28000
Total units to account for	38000
Units accounted for:
Unit completed & Transferred out	30000	30000	30000
Units in ending inventory:	8000
Material (40%)		3200
Conversion (70%)			5600
Equivalent units of production	38000	33200	35600

Solution 2:

Ham Company Computation of Cost per equivalent unit - Curing department
Particulars	Material	Conversion	Total
Opening WIP	$34,500	$48,600	$83,100
Cost Added during Period	$146,000	$194,400	$340,400
Total cost to be accounted for	$180,500	$243,000	$423,500
Equivalent units of production	33200	35600
Cost per Equivalent unit	$5.437	$6.826

Solution 3 & 4:

Ham Company Computation of Cost of ending WIP and units completed & transferred out - Curing Department
Particulars	Material	Conversion	Total
Equivalent unit of Ending WIP	3200	5600
Cost per equivalent unit	$5.437	$6.826
Cost of Ending WIP (Equivalent unit * Cost per equivalent unit)	$17,398	$38,226	$55,624
Units completed and transferred	30000	30000
Cost of units completed & Transferred (Unit completed * cost per equivalent unit)	$163,110	$204,780	$367,890

Solution 5:

Cost reconciliation - Curing Department
Particulars	Amount
Costs to be accounted for:
Cost of beginning WIP inventory	$83,100
Cost added to production	$340,400
Total Costs to be accounted for	$423,500
Costs accounted for as follows:
Cost of unit transferred out	$367,890
Ending WIP:
Material	$17,398
Converison	$38,225
Total Ending WIP	$55,622
Total costs accounted for	$423,512
Difference due to rounding off	-$12