Question

Valley Past Inc., uses the weighted average method for process costing. Valley produces oil products that pass through two sequential departments. All the materials are added at the beginning of the process while conversion costs are incurred evenly throughout the process. The work in process inventory for Department 1 at the beginning of March 2019 consisted of 12,000 gallons. There were beginning costs containing $135,000 of materials and $25,000 of Direct Labor and $10,000 of Manufacturing Overhead. During March 135,000 gallons were started in Department 1 and the costs during March were $1,235,000 for materials and $260,000 of conversion costs. The work in process at the end of March consisted of 16,000 gallons that were 35% complete.

Answer 1

Cost Report - Weighted Average Method:
Units comes from		Units go to:		Equivalent Units:
	Physical Units		Physical Units		DM-%	DM units	Conv-%	Conv units
Begin Inventory	12000	Completed & Transferred out	131000	Completed & Transferred out	100	131000	100	131000
Started Units	135000	Ending WIP Inventory	16000	Ending WIP Inventory	100	16000	35	5600
Total	147000	Total	147000	Total		147000		136600
Product Cost Report:
Unit Costs	11.49				DM	Conv.	Total
(9.32+2.17)	(rounded off)			Begin WIP	135000	35000	170000
				Costs added	1235000	260000	1495000
				Total costs to account for	1370000	295000	1665000
				Total Equivalent units	147000	136000
				Units Costs	9.32	2.17	11.49
					(rounded off)	(rounded off)
Total compl. & Transferred	1505190			Total compl. & Transferred	1220920	284270	1505190
					(131000*9.32)	(131000*2.17)
Total Ending WIP	161272
				Total Ending WIP	149120	12152	161272
Less: Rounding off	1462				(16000*9.32)	(5600*2.17)
Total Cost Allocated	1665000			Less: Rounding off			1462
				Total cost accounted for	1370040	296422	1665000