Question

Product Cost Report—Weighted Average Method

Riley Manufacturing Corporation produces a cosmetic product in three consecutive processes. The costs of Department 1 for May 2019 were as follows:

Cost of beginning inventory
Direct material		$9,800
Conversion costs		16,480
Costs added in Department 1:
Direct material	$295,120
Direct labor	298,550
Manufacturing overhead	203,130	796,800

Department 1 handled the following units during May:

Units in process, May 1, 2019	2,000
Units started in Department 1	40,000
Units transferred to Department 2	39,000
Units in process, May 31, 2019	3,000

On average, the May 1 units were 30% complete. The May 31 units were 60% complete. Materials are added at the beginning of the process, and conversion costs occur evenly throughout the process in Department 1. Riley uses the weighted average method for process costing.

Required

Prepare the product cost report for Department 1 for May.

Round average cost per equivalent unit to two decimal places. Use rounded answers for subsequent calculations. Round other answers to the nearest whole number.

Riley Manufacturing Corporation Department 1 Flow of Units and Equivalent Units Calculations, May 2019
		Equivalent Units
		% Work Done	Direct Materials	% Work Done	Conversion Costs
Complete/Transferred	Answer	Answer	Answer	Answer	Answer
Ending Inventory	Answer	Answer	Answer	Answer	Answer
Total	Answer		Answer		Answer

Product Cost Report
			Direct Materials		Conversion Costs
Beginning Inventory	Answer		Answer		Answer
Current	Answer		Answer		Answer
Total Costs to Account For	Answer		Answer		Answer
÷ Total Equivalent Units			Answer		Answer
Average cost / Equivalent unit (round 2 decimal places)			Answer		Answer
Complete / Transferred:
Direct Materials	Answer
Conversion costs	Answer
Cost of Goods Manufactured	Answer
Ending Inventory:
Direct Materials	Answer
Conversion costs	Answer
Cost of Ending Inventory	Answer
Total Costs Allocated	Answer

Answer 1

Prepare the product cost report for Department 1 for May.

Round average cost per equivalent unit to two decimal places. Use rounded answers for subsequent calculations. Round other answers to the nearest whole number.

Riley Manufacturing Corporation Department 1 Flow of Units and Equivalent Units Calculations, May 2019
		Equivalent Units
		% Work Done	Direct Materials	% Work Done	Conversion Costs
Complete/Transferred	39000	100%	39000	100%	39000
Ending Inventory	3000	100%	3000	60%	1800
Total	42000		42000		40800

Product Cost Report
			Direct Materials		Conversion Costs
Beginning Inventory	26280		9800		16480
Current	769800		295120		501680
Total Costs to Account For	823080		304920		518160
÷ Total Equivalent Units			42000		40800
Average cost / Equivalent unit (round 2 decimal places)			7.26		12.70
Complete / Transferred:
Direct Materials	283140
Conversion costs	495300
Cost of Goods Manufactured	778440
Ending Inventory:
Direct Materials	21780
Conversion costs	22860
Cost of Ending Inventory	44640
Total Costs Allocated	823080