Question

Saints Special produces a reddish-purple hair gel in two departments: Compounding and Hydrating. The gel is sent from the Compounding Department to the Hydrating Department. After work in the Hydrating Department, the product moves to the Bottling Department. Assume that Saints Special provides you with the following information for Hydrating operations for November (no new moterial is added in the Hydrating Department) and wants a production cost report for the Hydrating Department: WIP inventory Hydrating Beginning inventory (12,000 units, 30% complete with respect to Hydrating costs) Transferred-in costs (from Compounding) Hydrating Department conversion costs $152,400 $16,300 Current work (102,000 bottles started) Compounding Department Costs Transferred into Hydrating Hydrating Department Current Costs $1,101,600 $614,400 The ending inventory of the Hydrating Department has 16,000 units, which are 50 percent complete with respect to Hydrating Department costs. There is NO spoilage. Use weighted-average process costing to compute equivalent units & prepare a PRODUCTION COST REPORT Consider using the format below

Answer 1

PRODUCTION COST REPORT
		% Completed		Equivalent Units
Flow of Units	Physical Units	From Compounding	Hydrating	From Compounding	Hydrating
Units to account for
Beginning WIP	12000
Units started	102000
Total units to account for	114000
Units accounted for
Completed and TO	98000	100%	100%	98000	98000
Ending WIP	16000	100%	50%	16000	8000
Equivalent Units	114000			114000	106000
Flow of Costs
Costs to be accounted for
Costs in beginning inventory (from compounding)				152400	16300
Hydrating cost				1101600	614400
Total cost to be accounted for				1254000	630700
Equivalent Units				114000	106000
Cost per EU				11.00	5.95
Costs accounted for
Units transferred out				1078000	583100
Ending WIP				176000	47600
Total costs accounted for				1254000	630700