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:

1. Work in process, June 1, had 90,000 units (40 percent completed) and the following costs:

   Direct materials	$72,720
   Direct labor	108,000
   Overhead	36,000

2. During the month of June, 180,000 units were completed and transferred to the Assembly Department, and the following costs were added to production:

   Direct materials	$216,000
   Direct labor	144,000
   Overhead	162,000

3. 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.

Hatch Company
Fabrication Department
Production Report for June
Unit Information
Units to account for:
Units, beginning work in process
Units started
Total Units to account for
Units accounted for:
	Physical Flow	Equivalent Units
Units completed
Units, ending work in process
Total units accounted for
Cost Information
Costs to account for:
		Manufacturing Costs
Costs, beginning work in process		$
Costs added by department
Total costs to account for		$
Cost per equivalent unit		$
Costs accounted for:
Units completed		$
Units, ending work in process
Total costs accounted for		$

Feedback

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		135000
Total Units to account for		225000
Units accounted for:
	Physical Flow	Equivalent Units
Units completed	180000	180000
Units, ending work in process	45000	36000
Total units accounted for	225000	216000
Cost Information
Costs to account for:
		Manufacturing Costs
Costs, beginning work in process		$    216,720.00
Costs added by department		$    522,000.00
Total costs to account for		$    738,720.00
Cost per equivalent unit		$              3.42*
Costs accounted for:
Units completed		$    615,600.00
Units, ending work in process		$    123,120.00
Total costs accounted for		$    738,720.00

*738720/216000

Working

Statement of cost
Cost	Equivalent Cost/unit	Ending WIP		Transferred
		Units	Cost Allocated	Units	Cost Allocated
	$ 3.42	36,000	$        123,120.00	180,000	$ 615,600