Question

Weighted Average Process Costing

Minot Processing Company manufactures one product on a continuous basis in two departments, Processing and Finishing. All materials are added at the beginning of work on the product in the Processing Department. During December 2009, the following events occurred in the Processing Department:

Units started	16,000 units
Units completed and transferred to Finishing Department	15,000 units

Costs assigned to processing:Raw materials (one unit of raw materialsfor each unit of product started)	$142,900
Manufacturing supplies used	18,000
Direct labor costs incurred	51,000
Supervisors' salaries	12,000
Other production labor costs	14,000
Depreciation on equipment	6,000
Other production costs	18,000

Additional information follows:

• Minot uses weighted average costing and applies manufacturing overhead to Work-in-Process at the rate of 100 percent of direct labor cost.
• Ending inventory in the Processing Department consists of 3,000 units that are one-third converted.
• Beginning inventory contained 2,000 units, one-half converted, with a cost of $34,500 ($24,500 for materials and $10,000 for conversion).

(a) Prepare a cost of production report for the Processing Department for December.

Do not use negative signs with any of your answers.

Minot Processing Company: Processing Department Cost of Production Report For the Month Ending December 31, 2009
Summary of units in process:
Beginning
Units started
In process
Completed
Ending
Equivalent units in process:		Materials	Conversion	Total
Units completed
Plus equivalent units in ending inventory
Equivalent units in process
Total cost to be accounted for andcost per equivalent unit in process:
Beginning work-in-process
Current costs
Total cost in process
Equivalent units in process
Cost per equivalent unit in process
Accounting for total costs:
Transferred out
Ending work-in-process:
Materials
Conversion
Total cost accounted for

(b) Prepare an analysis of all changes in Work-in-Process.

Do not use negative signs with any of your answers.

Work-in-process:
Beginning
Current manufacturing costs:
Direct materials
Direct labor
Applied overhead
Total
Cost of goods manufactured
Ending

Answer 1

Minot processing Company processing Department cost of production Report for the month Ending December 31, 2007. Summary of units in procem: 2000 16000 Beginning units started in process Completed 18000 15000 Erding -3000

Moderials conversion total 15000 15000 Equivalent writs in procen: units completed plus Equivalent unik in Ending inventory Equivalent units in proxen 1000 3000 18000 16000 cost per Equivalent unit in procen: Beginning work-in-proces $24500 $10000 $34500 Current costs (Note: a) $142900 $102000 $244900 Total cost in process $167400 $112000 $279 400 Equivalent units in proces 18000 16000 Cost per Equivalent unitin $9.3 $7 $16.3 procees Note:b) $244500 Accounting for total costs: Transferred out (Note: c) Ending work-in-procen: Materials Note: Conversion $ 27900 $ 7000 $34900 Total cost accounted for $279400

Note: a Direct labour costs for Current conversion - Manufacturing Overhead (100% of pirect laboury $51000 + $ 51000 = $ 102000 Cost > Note:b cost per Equivalent unit in potem Materials – $167400 - $9.3 18000 Conversion - $ 112000 87 16000 Note :c Transferred out = 15000 unik & $16.3 = $2444500 Noteid Erding work in proces Materials & 3000 x $9.3= $27900 conversion = 1000 x 87 = $7000

Work-in-process: Beginning $34500 Current manufacturing cock: Direct materials $142900 Direct Labour $ 51000 Applied Overhead $ 51000 $2.44900 $279400 Total cost of goods menutenctured $2.44500 Ending $ 34900 * Erding - Total – cost of goods manufactured - $279400 - $244.500 – $34900