Burnt Ham Company uses the weighted-average method in its process costing system. The Curing Department of...

Burnt Ham Company uses the weighted-average method in its process costing system. The Curing Department of Burnt Company reported the following information for the month of November:

Beginning work in process: 30% complete for materials, and 80% complete for conversion.

Ending work in process: 40% complete for materials, and 70% complete for conversion.

Cost Summary	Materials	Conversion
Work in process, November 1	$ 34,500	$ 48,600
Added during November	$146,000	$194,400

	Units
Work in process, November 1	10,000
Started in November	28,000
Total	38,000
Work in process November 30	8,000
Completed and transferred out (You calculate this number.)

Prepare a Production Report for the company’s November production using the weighted-average method. You will need to include the following:

A)Units to account for.

B)The equivalent units of production for materials and conversion.

C)The cost per equivalent unit for materials and conversion. (Round to three decimals. There will be a small final rounding error).

D)The total cost assigned to units transferred out of the Curing Dept. during November (costs must be in dollars and cents).

E)The total cost of the work in process inventory on November 30 (costs must be in dollars and cents).

F)A cost reconciliation.

Solutions

Expert Solution

(A) and (B)

Burnt Ham Company
PRODUCTION REPORT Computation of Equivalent unit of production
	Unit	Material	Conversion
Units to account for
Beginning wip	10000
started into production	28000
Total units to account for	38000
Unit accounted for
Unit completed and transeferred out	30000	30000	30000
Ending inventory	8000
Material (40 %)		3200
Conversion (70 % )			5600
equivalent units of production	38000	33200	35600

(C)

Computation of cost per equivalent unit for materials and conversion
	Material	Conversion	Total
Opening WIP	$ 34500	$ 48600	$ 83100
Cost added during the period	$ 146000	$ 194400	$ 340400
Total cost accounted for	$ 180500	$ 243000	$ 423500
Equivalent unit of production	33200	35600
Cost per Equivalent unit	$ 5.437	$ 6.826

(D) and (E )

Computation of total cost assigned to units transferred out of the Curing Dept. during November and total cost of the work in process inventory on November 30
	Material	Conversion	Total
Cost per Equivalent unit	$ 5.437	$ 6.826
Units completed and transeferred	30000	30000
Total cost assigned to units transeffered out	$ 163110	$ 204780	$ 367890
Equivalent unit of ending WIP	3200	5600
Total cost of wip on november 30 ( unit of ending wip* cost per eqivalent unit )	$ 17398.4	$ 38225.6	$ 55624

(F)

Cost Reconciliation
Particulars	Amount
Cost to be accounted for
Cost of opening wip	$ 83100
Cost added to production	$ 340400
Total cost to be accounted for	$ 423500
Cost assigned as follow
Cost of units transferred out	$ 367890
Ending wip
Material cost	$ 17398.40
Conversion cost	$ 38225.60
Total Ending wip cost	$ 55624
Total cost assigned ( cost of unit transeferred + ending wip cost )	$ 423514
Difference due to rounding -off	- $ 14

ekkarill92 answered 1 year ago

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