Question

Product Cost Report—Weighted Average Method

Reston Manufacturing Corporation produces a cosmetic product in three consecutive processes. The costs of Department 1 for May 2016 were as follows:

Cost of beginning inventory
Direct material		$19,600
Conversion costs		33,180
Costs added in Department 1
Direct material	$590,800
Direct labor	597,100
Manufacturing overhead	406,260	1,594,160

Department 1 handled the following units during May:

Units in process, May 1	2,000
Units started in Department 1	40,000
Units transferred to Department 2	39,000
Units in process, May 31	3,000

On average, the May 1 units were 30% complete. The May 31 units were 60% complete. Materials are added at the beginning of the process, and conversion costs occur evenly throughout the process in Department 1. Reston uses the weighted average method for process costing.

Required

Prepare the product cost report for Department 1 for May.

Round average cost per equivalent unit to four decimal places. Use rounded answers for subsequent calculations. Round other answers to the nearest whole number.

Reston Manufacturing Corporation Department 1 Flow of Units and Equivalent Units Calculations, May 2016
		Equivalent Units
		% Work Done	Direct Materials	% Work Done	Conversion Costs
Complete/Transferred	Answer	Answer%	Answer	Answer%	Answer
Ending Inventory	Answer	Answer%	Answer	Answer%	Answer
Total	Answer		Answer		Answer

Product Cost Report
			Direct Materials		Conversion Costs
Beginning Inventory	$Answer		$Answer		$Answer
Current	Answer		Answer		Answer
Total Costs to Account For	$Answer		$Answer		$Answer
÷ Total Equivalent Units			Answer		Answer
Average cost / Equivalent unit (round four decimal places)			$Answer		$Answer
Complete / Transferred:
Direct Materials	$Answer
Conversion costs	Answer
Cost of Goods Manufactured	$Answer
Ending Inventory:
Direct Materials	$Answer
Conversion costs	Answer
Cost of Ending Inventory	$Answer
Total Costs Allocated	$Answer

Answer 1

Reston Manufacturing Corporation Department 1
Flow of Units and Equivalent Units Calculations, May 2016
		Equivalent Units
		% Work	Direct	% Work	Conversion
		Done	Materials	Done	Costs
Complete/Transferred	39000	100%	39000	100%	39000
Ending Inventory	3000	100%	3000	60%	1800
Total	42000		42000		40800

Product Cost Report
			Direct		Conversion
			Materials		Costs
Beginning Inventory	$        52,780.00		$     19,600.00		$       33,180.00
Current	$   15,94,160.00		$ 5,90,800.00		$ 10,03,360.00
Total Costs to Account For	$   16,46,940.00		$ 6,10,400.00		$ 10,36,540.00
÷ Total Equivalent Units			42000		40800
Average cost / Equivalent unit (round four decimal places)			$        14.5333		$          25.4054

Complete / Transferred:
Direct Materials	$          5,66,799
Conversion costs	$          9,90,811
Cost of Goods Manufactured	$        15,57,609
Ending Inventory:
Direct Materials	$             43,600
Conversion costs	$             45,730
Cost of Ending Inventory	$             89,330
Total Costs Allocated	$        16,46,939