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	5,600
Units completed and transferred out	38,080
Units in process, October 31, 60% complete	11,200
Costs:
WIP, October 1	$ 44,800
Costs added during October	851,200

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

			Equivalent units
Units movement		Physical units	Costs	Total
WIP beginning		5,600
started during current period		43,680
Units to account for		49,280
WIP ending percentage completion			60%
completed and transferred out during the period			38,080	38,080
WIP ending units			6,720	11,200
Total units to account for			44,800	49,280

Production cost report
Costs to account for		Costs
Work in process, beginning		44,800
Added during the period		851,200
Total costs to account for		896,000
Equivalent units		44,800
Weighted average cost per equivalent unit		20.0000
Costs accounted for as follows:
completed and transferred out		761,600
		[20*38080]
WIP ending		134,400
		[20*6720]
Total costs accounted for		896,000