Question

Don't Cry Over Spilled Milk, Inc., a manufacturer of mops, uses the weighted average method in its processing costing system. Don't Cry uses a traditional costing system in the allocation of its manufacturing overhead (MOH) to production; MOH costs are allocated to production on the basis of machine hours logged during the period. Total estimated MOH for the period was $300,000 and total estimated machine hours were 100,000. The following data concern the operations of the company's first processing department, Assembly, for June 2018. Beginning Work in Process 800 mops, 60% complete with respect to direct materials, 10% complete with respect to conversion Costs in Beginning Work in Process $3,712 (of this amount, $1,296 is for direct materials) Units Started in June 16,000 mops Direct Product Costs Added During June direct materials $47,076; direct labor $216,213 Ending Work in Process 300 mops, 60% completed with respect to direct materials, 70% complete with respect to conversion During June, 73,657 actual machine hours were logged during production. (round all calculation to 2 decimal places. all answers should include commas and 2 decimal places i.e. 1,000.00 not 1000.) The cost to assemble one mop in June was $0. The cost of goods completed and transferred out of the Assembly department during June equals $ The conversion costs included in Work in Process-Assembly at the beginning of July would equal $0.

Answer 1

	Total Estimated Manufacturing Overhead	$300,000
	Estimated total machine hours	100000
	Manufacturing Overhead Rate	$3.00	(300000/100000)
	Machine hours used in June	73,657
	Manufacturing Overhead Cost in June	$220,971	(73657*$3)
	Direct labor cost in June	$216,213
	Total Convesrion Costs added during June	$437,184	(220971+216213)
	Summery of Physical units and equivalent units calculation
	Units to be accounted for	Phycal units
	Units in the beginning WIP inventory	800
	Units started during the month	16000
	Total units to be accounted for	16800
			Equivalent units
	Units accounted for	Physical unit	Material	Conversion
	Units completed and transferred out	16500	16500	16500
	Units in ending WIP inventory	300	180	210	(60%*300 for materials)(70%*300 for conversion)
	Total units accounted for	16800	16680	16710
	Summery of costs to be accounted for
	Costs to be accounted for	Materials	Conversion	Total
	Cost in beginning WIP	$1,296	$2,416	$3,712	(Conversion=3712-1296)
	Costs incurred during the period	$47,076	$437,184	$484,260
	Total costs to be accounted for	$48,372	$439,600	$487,972
	Calculation of costs per equivalent unit
		Materials	Conversion	Total
	Total costs to be accounted for(a)	$48,372	$439,600	$487,972
	Total equivalent units accounted for(b)	16,680	16,710
	Cost per equivalent unit(a)/(b)	$2.90	$26.31	$29.21
	Assign costs to units transferred out and in Ending WIP	(Equivalent Unit*$2.90 for materials) and (Equivalent units*$29.21 for conversion)
		Materials	Conversion	Total
	Costs assigned to units transferred out	$47,850	$434,075	$481,925
	Cost assigned to ending WIP	$522	$5,525	$6,047
	Cost to assemble one Mop in June was	$29.21
	Cost of goods completed and transferred out	$481,925
	Conversion cost included in WIP	$5,525