Question

DATA REVIEW VIEW FORMULAS AA Wrap Text FILE HOME INSERT PAGE LAYOUT Cut Calibri 11 Paste Format Painter BIU.B. S Clipboard Font Copy E E Merge & Center 88 Conditional Format as Cell Formatting Table Styles Inse Alignment 041 X fx Production Cost Report: Weighted Average Method. Quality Confections Company manufactures chocolate bars in two processing departments, Mixing and Packaging, and uses the weighted average method for its process costing system. The table that follows shows information for the Mixing department for the month of March. Mixing 2 Unit Information (Measured in Pounds) 3 Beginning work-in-process inventory 4 Started or transferred in during the month Ending work-in-process inventory: 80 percent materials, 70 percent labor, and 60 percent 5 overhead 8,000 230,000 6,000 7 Cost Information Beginning Work-in-Process Inventory Direct materials 3,000 Direct labor 1,500 Overhead 2,200 Costs incurred during the Period Direct materials 103,000 Direct labor 55,000 Overhead 81,000 Required: 1. Prepare a production cost report for the Mixing department for the month of March. (Use the Exel format as demonstrated in the lecture, as

Answer 1

Production cost report for the Mixing department on Weighted Average Method:
	Physical units	Direct Mat.	Direct Lab.	Overhead	Total
Beg WIP	8000	8000	8000	8000
Started and Completed	224000	224000	224000	224000
Transferred out	232000
End WIP	6000	4800 (80%)	4200 (70%)	3600 60%)
Equivalent units		236800	236200	235600
Total Costs:
Beg WIP		3000	1500	2200
Incurred in March		103000	55000	81000
Total costs		106000	56500	83200	245700
Cost per Eq. unit		0.447635135	0.239204064	0.353140917
Cost of Transferred Out:		103851.4	55495.3	81928.7	241275.4
Cost of End WIP		2148.6	1004.7	1271.3	4424.6
Cost accounted for					245700
Highest cost		Highest
Percentage of costs		43.14%