Question

Create a model for a production cost report using the weighted average method for the month of May. You should have an input area in which you put the department information for the month, and an output area that calculates the production cost report. Please include step by step directions(in a text box).After completion of the production cost report using the weighted average method, create a new worksheet and label the tab “FIFO”.  Create a production cost report using the same information using the FIFO method.

Department Data:

Information about units:
Units in beginning WIP	31,000
Started during the month	240,000
Units in Ending WIP	21,000
Percentage of Completion:
Beginning Inventory:
Direct materials	60%
Conversion	40%
Ending Inventory:
Direct Materials	30%
Conversion	60%
Costs in Beginning WIP:
Direct materials	$135,000
Conversion	$210,000
Costs incurred during the month:
Direct Materials	$1,250,000
Direct Labor	$48,000
Overhead	$586,000

Answer 1

Weighted average method

category	Total units	Equivalent units
		Direct meterial	Convertion
products completed During the month	240,000+31,000-21,000 =250,000	250,000	250,000
Ending work in process	21,000	6,300	12,600
Equivalent cost per unit
	Total cost	Equivalent units	Equivalent cost per unit
Direct meterial	1,250,000+135,000=1,385,000	256,300	5.404
Convertion	210,000+48,000+586,000 =844,000	262,600	3.214
Total cost of each category
	Direct meterials	convertion	total
Products completed in the month	5.404*250,000=1,351,000	3.214*250,000=803,500	2,154,500
Ending WIP	6300*5.404=34,045.2	12,600*3.214=40,496.4	74,541..6

FIFO method

category	Total units	Equivalent Units
		Direct meterial	Convertion Cost
Begining Work in process	31,000	12,400 (remaining 40%)	18,600 (remaining 60%)
Units started and completed	240,000-21,000 219,000	219,000	219,000
Ending Work in process	21,000	6,300 (30% completed)	12,600 (60% completed)
Total		237,700	250,200
Equivalent cost per unit
	total cost	Equivalent units	Equivalent cost per unt
direct meterial	1,250,000	237,700	5.26
convertion	634,000	250,200	2.534
Total cost of each category
	Direct meterials	convertion cost	total
Begining work in process comleted in may	135,000+(5.26*12,400) =200,224	210,000(18,600*2.534) =257,132.4	457,356.4
Started and completed	219,000*5.26=1,151,940	219,000*2.534=554,946	1,706,886
Ending Work in process	6,300*5.26=33,138	12,600*2.534=31,928.4	65,066.4