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 ​$400,000 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	$3712 (of this amount, $1296 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% completed with respect to conversion

(round all calculation to 2 decimal places. all answers should include commas and 2 decimal places i.e.​ 1,000.00 not

1000.​)

1) The cost to assemble one mop in June was $____.

2) The cost of goods completed and transferred out of the Assembly department during June equals $_____.

3) The conversion costs included in Work in​ Process-Assembly at the beginning of July would equal $______.

Answer 1

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Workings
Goods Finished In June	Whole Units
Inventory in Process, June 1	800.00
Add: Units started in June	16,000.00
Less: Inventory in Process, June 30	300.00
Goods Finished In June	16,500.00
Conversion costs	Amount $
Labor cost	216,213.00
Manufacturing Overhead	309,656.00
(400,000/100,000*77,414)
Conversion costs	525,869.00

Don't Cry Over Spilled Milk
Units charged to production:	Whole Units
Inventory in process on June 1	800.00
Units started in June	16,000.00
Total units accounted	16,800.00
		Equivalent Units
Units to be assigned costs:		Direct Materials	Conversion
Goods finished in June	16,500.00	16,500.00	16,500.00
Inventory in Process, June 30	300.00	180.00	210.00
Total units to be assigned costs:	16,800.00	16,680.00	16,710.00
COSTS		COSTS
Costs per equivalent unit		Direct Materials	Conversion	Total
Costs in Beginning Work in Process		1,296.00	2,416.00	3,712.00
Cost incurred in June		47,076.00	525,869.00	572,945.00
Total costs for July		48,372.00	528,285.00	576,657.00
Total equivalent units		16,680.00	16,710.00
Costs per equivalent unit		2.90	31.61	34.51
So the cost to assembly 1 mop is $ 34.51.
Cost of goods completed and transferred to Assembly department in June		Direct Materials	Conversion	Total
Goods Finished In June		16,500.00	16,500.00
Costs per equivalent unit		2.90	31.61
Cost of goods completed and transferred in June		47,850.00	521,565.00	569,415.00
Conversion cost included in opening work in process for July		Direct Materials	Conversion	Total
Equivalent units of conversion in Inventory in Process, June 30		180.00	210.00
Costs per equivalent unit		2.90	31.61
Conversion cost included in opening work in process for July		522.00	6,638.10	7,160.10