Question

4. A Company manufactures small boats. Materials are added at the beginning of the process and conversion costs are incurred evenly throughout the process. Data for April follows:

Production Data

	Units	Percent Complete
Units in process, April 1	1000	60%
Units started into production	4000
Units in process, April 30	1500	20%

Cost Data

Work in process, April 1:			Costs added:
Materials	$25,500		Materials	$90,000
Labour	3,000		Labour	12,000
Manufacturing overhead	6,000		Manufacturing overhead	18,900

Required: Using the weighted average method, prepare a production cost report for the company. Note that you will need to use the following Production Cost Report Template on the next page

	Physical Units	Direct Materials	Conversion Costs	Total
Units to Account For:
From Beginning Work In Process
Units started during the year
Total Units to Account For
Units Accounted For:
Completed and transferred out
Ending Work in Process
Total Units Accounted for
Total Equivalent Units
Costs to Account For:
Beginning Work-in-Process
Costs incurred during year
Total Costs to Account For:
Cost per equivalent unit
Cost of Units Completed & transferred out
Ending Work In Process
Total Costs Accounted For:

Answer 1

	Physical Units	Direct Materials	Conversion Costs	Total
Units to Account For:
From Beginning Work In Process	1000
Units started during the year	4000
Total Units to Account For	5000
Units Accounted For:
Completed and transferred out	3500	3500	3500
Ending Work in Process	1500	1500	300
Total Units Accounted for	5000
Total Equivalent Units		5000	3800
Costs to Account For:
Beginning Work-in-Process		$25,500.00	$9,000.00	$34,500.00
Costs incurred during year		$90,000.00	$30,900.00	$120,900.00
Total Costs to Account For:		$115,500.00	$39,900.00	$155,400.00
Cost per equivalent unit		$23.10	$10.50	$33.60
Cost of Units Completed & transferred out 3500*33.60	$117,600.00
Ending Work In Process 300*10.15 +1500*23.10	$37,800.00
Total Costs Accounted For:	$155,400.00