Question

Problem 3-6A (Video) (Part Level Submission)

Hamilton Processing Company uses a weighted-average process cost system and manufactures a single product—an industrial carpet shampoo and cleaner used by many universities. The manufacturing activity for the month of October has just been completed. A partially completed production cost report for the month of October for the Mixing and Cooking department is as follows.

A. Prepare a schedule that shows how the equivalent units were computed so that you can complete the “Quantities: Units accounted for” equivalent units section shown in the production cost report, and compute October unit costs. (Round unit costs to 2 decimal places, e.g. 2.25 and other answers to 0 decimal places, e.g. 125.)

HAMILTON PROCESSING COMPANY Mixing and Cooking Department Production Cost Report For the Month Ended October 31 Equivalent Units Physical Conversion Quantities Units Materials Units to be accounted for Work in process, October 1 20,000 (all materials, 70% conversion costs) Started into production 150,000 Total units 170,000 Units accounted for 120,000 Transferred out Work in process, October 31 (60% materials, 40% conversion costs) 50,000 Total units accounted for 170,000 Conversion Costs Materials Total Costs Unit costs Total Costs $240,000 $105,000 $345,000 Equivalent units Unit costs Costs to be accounted for Work in process, October 1 Started into production Total costs $30,000 315,000 $345,000

Answer 1

Solution:

Production cost report
For the month ended October 31
	Physical units	Equivalent units
Quantities:		Materials	Conversion costs
Units to be Account for:
Work in process, October 1	20000
Started in production	150000
Total units	170000
Units accounted for:
Units transferred out	120000	120000	120000
Work in process, October 31	50000	30000	20000
Total units	170000	150000	140000
Costs	Materials	Conversion costs	Total Costs
Unit Costs:
Total Costs	$2,40,000	$1,05,000	$3,45,000
Equivalent Units	150000	140000
Units Costs	$1.60	$0.75	$2.35