Question

Weighted Average Method, Single Department Analysis, Uniform Costs Hatch Company produces a product that passes through three processes: Fabrication, Assembly, and Finishing. All manufacturing costs are added uniformly for all processes The following information was obtained for the Fabrication Department for June a. Work in process, June 1, nad 90,000 units (40 percent completed) and the following costs: Direct materials $101,400 Direct labor 107,000 Overhead 36,000 b. During the month of June, 190,000 units were completed and transferred to the Assembly Department, and the following costs were added to production: Direct materials $215,000 Direct labor 144,000 Overhead 165,000 c. On June 30, there were 45,000 partially completed units in process. These units were 80 percent complete. Required: Prepare a cost of production report for the Fabrication Department for June using the weighted average method of costing. The report should disclose the physical flow of units, equivalent units, and unit costs and should track the disposition of manufacturing costs. Round the cost per equivalent unit to the nearest cent.

Answer 1

Solution:

Hatch Company
Fabrication Department
Production report for June
Unit Information
Units to account for:
Units, beginning work in process		90000
Units started		145000
Units to account for		235000
Units accounted for:	Physical flow	Equivlent units
Units completed	190000	190000
Units, ending Work in process	45000	36000
Total units accounted for	235000	226000
Cost information:
Costs to account for:
Costs, beginning work in process		$244,400.00
Costs added by department		$524,000.00
Total costs to account for		$768,400.00
Cost per equivalent unit		$3.40
Costs accounted for:
Units completed		$646,000.00
Units, ending Work in process		$122,400.00
Total costs accounted for		$768,400.00