Question

Test/Exam 2 (Ch. 5-7) Production Report Alfombra Inc. manufactures throw rugs. The throw rug department weaves cloth and yarn into throw rugs of various sizes. Alfombra uses the weighted average method. Materials are added uniformly throughout the weaving process. In August, Alfombra switched from FIFO to the weighted average method. The following data are for the throw rug department for August: Production: Units in process, August 1, 60% complete 40,000 Units completed and transferred out 120,000 Units in process, August 31, 60% complete 40,000 Costs: WIP, August 1 $144,000 Current costs 604,800 Total $748,800 The owner of Alfombra insisted on a formal report that provided all the details of the weighted average method. In the manufacturing process, all materials are added uniformly throughout the process. Required: Prepare a production report for the throw-rug department for August using the weighted average method. If an amount box does not require an entry, leave it blank or enter zero "0". Round cost per equivalent unit value to the nearest cent and use rounded value in intermediate calculations,

Answer 1

	Transferred out	Ending work in process	Total
Goods transferred out	120000*5.2 = 624000		624000
Goods in ending work in process		24000*5.2 = 124800	124800
Total Costs accounted for	624000	124800	748800