Question

Product Cost Report—Weighted Average Method

Riley Manufacturing Corporation produces a cosmetic product in three consecutive processes. The costs of Department 1 for May 2019 were as follows:

Cost of beginning inventory
Direct material		$9,800
Conversion costs		16,480
Costs added in Department 1:
Direct material	$295,120
Direct labor	298,550
Manufacturing overhead	203,130	796,800

Department 1 handled the following units during May:

Units in process, May 1, 2019	2,000
Units started in Department 1	40,000
Units transferred to Department 2	39,000
Units in process, May 31, 2019	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. Riley 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 two decimal places. Use rounded answers for subsequent calculations. Round other answers to the nearest whole number.

Riley Manufacturing Corporation Department 1 Flow of Units and Equivalent Units Calculations, May 2019
		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 2 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

Show work

Answer 1

UNITS TO ACCOUNT FOR:
Beginning Work in Process units			2,000
Add: Units Started in Process			40,000
Total Units to account for:			42,000
UNITS TO BE ACCOUNTED FOR:
Units completed				39000
Ending Work in Process			3,000
Total Units to be accounted for:		42,000
Equivalent Units:
			UNITS	Material Cost	Conversion
				% Completion	Units	% Completion	Units
Units completed		39000	100%	39,000	100%	39,000
Ending Work in Process	3000	100%	3,000	60%	1,800
Total Equivalent units	42000		42,000		40,800
TOTAL COST TO ACCOUNT FOR:
				Material		Conversion
Beginning cost of WIP		9800		16480
Cost added			2,95,120		5,01,680
Total Cost to account for:		3,04,920		5,18,160
Equivalent Units			42,000		40,800
Cost per Equivalent unit		7.26		12.7
TOTAL COST ACCOUNTED FOR:
Units completed (39000 units)
				Equivalent unit	Cost per EU	Total Cost
Material				39,000	7.26	283140
Conversion Cost			39,000	12.7	495300
Total cost of units transferred out						778440
Ending Work in process (3000 units)
				Equivalent unit	Cost per EU	Total Cost
Material				3,000	7.26	21780
Conversison Cost			1,800	12.7	22860
Total cost of Ending Work in process:			44,640
Total cost accounted for				8,23,080