Question

Question 2 Flag question Mark 23.00 out of 38.00 Partially correct Weighted Average Process Costing Minot Processing Company manufactures one product on a continuous basis in two departments, Processing and Finishing. All materials are added at the beginning of work on the product in the Processing Department. During November 2017, the following events occurred in the Processing Department: Units started 17,000 units Units completed and transferred to Finishing Department 14,500 units Costs assigned to processing Raw materials (one unit of raw materials for each unit of product started) $296,200 Manufacturing supplies used 18,000 Direct labor costs incurred 103,000 Supervisors' salaries 12,000 Other production labor costs 14,000 6,000 Depreciation on equipment Other production costs 18,000 Additional information follows: Minot uses weighted average costing and applies manufacturing overhead to Work-in-Process at the rate of 100 percent of direct labor cost. Ending inventory in the Processing Department consists of 4,500 units that are one-third converted. Beginning inventory contained 2,000 units, one-half converted, with a cost of $27,300 ($17,300 for materials and $10,000 for conversion). (a) Prepare a cost of production report for the Processing Department for November.

Answer 1

Summary of units in process
Beginning		2000
Units started		17000
In process		19000
Completed		14500
Ending		4500

Total cost to be accounted for				Materials	Conversion	Total
Beginning WIP				$   17,300.00	$   10,000.00	$   27,300.00
Current Costs				$ 296,200.00	$ 206,000.00	$ 502,200.00
Total costs in process				$ 313,500.00	$ 216,000.00	$ 529,500.00
Eq. units in process				19000	16000
				$           16.50	$           13.50	$           30.00

Accounting for total costs
Transferred out		(14500 x $ 30)			$ 435,000.00
Ending WIP
Materials		(4500 x $ 16.5)		$ 74,250.00
Conversion		(1500 x $ 13.5)		$ 20,250.00	$   94,500.00
Total cost accounted for					$ 529,500.00

Analysis of all changes in WIP
WIP			$   27,300.00
Beginning current Manu. Costs
Direct materials		$ 296,200.00
Direct labor		$ 103,000.00
Applied OH		$ 103,000.00	$ 502,200.00
Total			$ 529,500.00
Cost of goods manufactured			$ 435,000.00
Ending			$   94,500.00