Problem

Weighted-Average Method; Transferred-in Costs Holton Tool Company has two departments, ass...

Weighted-Average Method; Transferred-in Costs Holton Tool Company has two departments, assembly and finishing. The assembly department takes purchased parts and assembles the final product. The finishing department performs testing and adds other materials and packages the product. Direct materials are added at the end of the process in the finishing department. The following summarizes the finishing department’s operations for the month of July.

 

Number of Units

Work-in-process, June 30, 50% complete for conversion costs

3,000

Transferred in during July

28,000

Completed during July

27,000

Work-in-process, July 31, 50% complete for conversion costs

4,000

 

Costs

Work-in-process, June 30 (transferred-in costs: $40,000; conversion costs: $30,000)

$ 70,000

Transferred-in from assembly department during July

150,000

Direct materials added during July

60,000

Conversion added during July

80,000

Total to account for

$360,000

Required Calculate each of the following amounts for the finishing department using the weighted-average process costing method:

1. Equivalent units of transferred-in direct materials and conversion.

2. Unit costs of transferred-in, direct materials, and conversion.

3. Cost of goods completed and transferred out during July.

4. Cost of work-in-process inventory at July 31.

Step-by-Step Solution

Request Professional Solution

Request Solution!

We need at least 10 more requests to produce the solution.

0 / 10 have requested this problem solution

The more requests, the faster the answer.

Request! (Login Required)


All students who have requested the solution will be notified once they are available.
Add your Solution
Textbook Solutions and Answers Search
Solutions For Problems in Chapter 6