Question

Business Course Product Cost Report-Weighted Average Method Reston Manufacturing Corporation produces a cosmetic product in three consecutive processes. The costs of Department for May 2016 were as follows: Cost of beginning inventory Direct material Conversion costs 24 Costs added in Department Direct materia 5443.100 Direct labor 147.825 Manufacturing overhead 304695 1,195.620 Department 1 handled the following units during May Units in process May 1 2.000 Units started in Department1 40.000 Units transferred to Department 2 19.000 Units in process, May 31 31000 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

Answer 1

Solution

Statement of Equivalent Units(Weighted average)
		Material		Conversion
	Units	Complete %	Equivalent units	Complete %	Equivalent units
Complete/Transferred	39,000	100%	39,000	100%	39,000
Ending Inventory	3,000	100%	3,000	60%	1,800
Total	42,000	Total	42,000	Total	40,800

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Production Cost Report
		Direct material	Conversion costs
Beginning Inventory	$         39,585.00	$          14,700.00	$             24,885.00
Current	$   1,195,620.00	$        443,100.00	$           752,520.00
Total cost to account for	$   1,235,205.00	$        457,800.00	$           777,405.00
Total Equivalent units		42,000	40,800
Average cost/ Equivalent units		$                   10.90	$                     19.05
Completed /Transferred
Direct material	$      425,100.00
Conversion cost	$      743,107.72
Cost of goods manufactured	$   1,168,207.72
Ending inventory
Direct material	$         32,700.00
Conversion cost	$         34,297.28
Cost of ending inventory	$         66,997.28
Total cost accounted for	$   1,235,205.00