Question

Product Cost Report-Weighted Average Method Reston Manufacturing Corporation produces a cosmetic product in three consecutive processes. The costs of Department 1 for May 2016 were as follows: Cost of beginning inventory $29,400 Direct material Conversion costs 49,770 Costs added in Department 1 $886,200 Direct material Direct labor 895,650 Manufacturing overhead 609,390 2,391,240 Department 1 handled the following units during May: Units in process, May 1 Units started in Department 1 2,000 40,000 Units transferred to Department 2 39,000 Units in process, May 31 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. Reston 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 four decimal places. Use rounded answers for subsequent calculations. Round other answers to the nearest whole number. Reston Manufacturing Corporation Department 1 Flow of Units and Equivalent Units Calculations, May 2016 Equivalent Units Direct % Work % Work Conversion Materials Done Done Costs Complete/Transferred Ending Inventory Total Product Cost Report Direct Conversion Materials Costs Beginning Inventory %24 Current Total Costs to Account For + Total Equivalent Units Average cost / Equivalent unit (round four decimal places) Complete / Transferred: Direct Materials Conversion costs Cost of Goods Manufactured Ending Inventory: Direct Materials 24 Conversion costs Cost of Ending Inventory %24 Total Costs Allocated

Answer 1

Flow of Units and Equivalent Units Calculations, May 2016
		% Work Done	Direct Materials	% Work Done	Conversion Costs
Completed/Transferred	39000	100	39000	100	39000
Ending inventory	3000	100	3000	60	1800
Total	42000		42000		40800
Product Cost Report
	Total	Direct Materials	Conversion Costs
Beginning inventory	$         79,170	$       29,400	$        49,770
Current	$   23,91,240	$   8,86,200	$ 15,05,040
Total costs to account for	$   24,70,410	$   9,15,600	$ 15,54,810
Total equivalent units		42000	40800
Average cost/Equivalent unit		$    21.8000	$      38.1081
Completed/Transferred:
Direct materials	$      8,50,200
Conversion costs	$   14,86,216
Cost of goods manufactured	$   23,36,416
Ending inventory:
Direct materials	$         65,400
Conversion costs	$         68,595
Cost of ending inventory	$      1,33,995
Total costs allocated	$   24,70,410