Question

Mom’s Cookies has two departments, Baking and Packaging. Raw materials are introduced at the beginning of the baking process. The following is the department’s work in process T-Account for May:
Work in Process – Baking Department
May 1 balance: (50 kilograms; 60% complete as to conversion)
750
Completed and transferred to the packaging department (_?_ kilograms)
___?___
Costs added:
Materials (1,500 kilograms)
7,035
Labour
1,500
Overhead
9,400
May 31 balance (40 kilograms, 25% complete)
___?___
The beginning work in process includes material of $250, labour of $100, and overhead of $400.
Required:
Using the weighted average method, prepare a production cost report for the company.

Answer 1

Units to account for		Equivalent units
WIP, beginning inventory	50	Materials	Conversion
Started during the month	1500
Total physical units accounted for	1550
Units processed
Transferred out	1510	1510	1510
Ending WIP	40	40	10
Total physical units accounted for	1550
Total equivalent units		1550	1520

Cost per equivalent unit
Costs	Materials	Conversion costs	Total
Beginning WIP	250	500	750
Costs added during the current month	7035	10900	17935
Total costs to account for	7285	11400	18685
Divided by :Total EUP	1550	1520
Cost per equivalent unit	4.70	7.50

	Direct Materials	Conversion costs	Total
a. Completed and transferred out
Equivalent units	1510	1510
Multiply by :Cost per equivalent unit	4.7	7.5
Equivalent costs allocated	7097	11325	18422
b. Ending work in process
Equivalent units	40	10
Multiply by :Cost per equivalent unit	4.7	7.5
Equivalent costs allocated	188	75	263
Total costs accounted for			18685

Workings:

Units to account for	Units	% of completion	Equivalent units Materials	% of completion	Equivalent units Conversion costs
Completed	1510	100%	1510	100%	1510
WIP,ending	40	100%	40	25%	10
Total			1550		1520