Question

Production Report, Weighted Average

Manzer Inc. manufactures bicycle frames in two departments: cutting and welding. Manzer uses the weighted average method. Manufacturing costs are added uniformly throughout the process. The following are cost and production data for the cutting department for October:

Production:
Units in process, October 1, 40% complete	6,000
Units completed and transferred out	40,800
Units in process, October 31, 60% complete	12,000
Costs:
WIP, October 1	$ 48,000
Costs added during October	912,000

Required:

Prepare a production report for the cutting department. Round cost per equivalent unit to the nearest cent. Use this rounded amount for further calculations. If an amount box does not require an entry, leave it blank or enter "0".

Manzer Inc.
Cutting Department Production Report
For the Month of October (Weighted Average Method)
Unit Information
Physical flow:
Units in beginning WIP
Units started
Total units to account for
Equivalent units:
Units completed
Units in ending WIP
Total units accounted for:
Equivalent units:
Units completed
Units in ending WIP
Total equivalent units
Cost Information
Costs to account for:
Beginning WIP			$
Incurred during October
Total costs to account for			$
Cost per equivalent unit			$
Costs accounted for:
	Transferred Out	Ending Work in Process	Total
Goods transferred out	$	$	$
Goods in ending WIP
Total costs accounted for	$	$	$

Answer 1

Cutting Department Production Report
For the Month of October (Weighted Average Method)
Unit Information
Physical flow:
Units in beginning WIP	6,000
Units started	46,800
Total units to account for	52,800
Equivalent units:
Units completed	40,800
Units in ending WIP	12,000
Total units accounted for:	52,800
Equivalent units:
Units completed	40,800
Units in ending WIP	7,200
Total equivalent units	48,000
Cost Information
Costs to account for:
Beginning WIP	48,000
Incurred during October	912,000
Total costs to account for	960,000
Cost per equivalent unit	20.00
Costs accounted for:
	Transferred Out	Ending Work in Process	Total
Goods transferred out	816,000		816,000
Goods in ending WIP		144,000	144,000
Total costs accounted for	816,000	144,000	960,000