Question

Cost of Production Report: Average cost Method

Use the average cost method with the following data:

Work in process, January 1, 3,400 units, 75% completed $ 23,000

Materials added during January from Weaving Department, 64,000 units 366,200

Direct labor for January 105,100

Factory overhead for January 80,710

Goods finished during January (includes goods in process, January 1), 63,500 units —

Work in process, January 31, 3,900 units, 10% completed —

Prepare a cost of production report for the Cutting Department of Dalton Carpet Company for January 2016 using the average cost method. If required, round your cost per equivalent unit answer to the nearest cent.

Dalton Carpet Company

Cost of Production Report-Cutting Department

For the Month Ended January 31, 2016

Unit Information

Units charged to production:

Inventory in process, January 1 ________

Received from Weaving Department _________   

Total units accounted for by the Cutting Department __________

Units to be assigned costs:

Transferred to finished goods in January __________ __________

Inventory in process, January 31 ____________ ____________

Total units to be assigned costs ____________ _____________

Cost Information

Costs per equivalent unit:

Costs Total costs for January in Cutting Department $ ___________

Total equivalent units _________

Cost per equivalent unit $ __________

Costs assigned to production:

Inventory in process, January 1 $ ________

Costs incurred in January _________

Total costs accounted for by the Cutting Department $ __________

Costs allocated to completed and partially completed units:

Transferred to finished goods in January $ ___________

Inventory in process, January 31 __________

Total costs assigned by the Cutting Department $_________

Answer 1

Solution:

Dalton Carpet Company
Cost of Production Report - Cutting Department
For the month ended January 31, 2016
Unit Information
Units charged to production:
Inventory in process, January 1					3,400
Received from Weaving Department					64,000
Total units accounted for by the Cutting Department					67,400
Units to be assigned costs:
Tranferred to finished goods in January					63,500	63,500
Inventory in process, January 31					3,900	390
Total units to be assigned costs					67,400	63,890
Cost Information
Cost per equivalent unit:
Costs Total costs for January in Cutting Department $						575010
Total equivalent units						63,890
Cost per equivalent unit $						9
Costs assigned to production:
Inventory in process, January 1 $						23000
Costs incurred in January						552010
Total costs accounted for by the Cutting Department $						575010
Costs allocated to completed and partially completed units:
Transferred to finished goods in January $						571500
Inventory in process, January 31						3510
Total costs assigned by the Cutting Department $						575010

	Calculations:
1)	3,900 x 10% = 390
2)	23,000 + 366,200 + 105,100 + 80,710 = 575,010
3)	3,900 x 10% x 9 = 3,510