Comprehensive Problem—Weighted-Average Method
Honeybutter. Inc.. manufactures a product that goes through two departments prior to completion—the Mixing Department followed by the Packaging Department. The follow ing information js available about work in the first department, the Mixing Department, during June.
Required:
Assume that the company uses the weighted-average method.
1. Determine the equivalent units for June for the Mixing Department.
2. Compute the costs per equivalent unit for June for the Mixing Department.
3. Determine the total cost of ending work in process inventory and the total cost of units transferred to the Packaging Department.
4. Prepare a cost reconciliation report for the mixing department for June.
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