Question 2: Traffic Control Systems makes bright rubber traffic cones. The company has two departments, Melting...

Question 2:

Traffic Control Systems makes bright rubber traffic cones. The company has two departments, Melting and Forming. Raw materials are introduced at various stages throughout the melting process. The following is the department’s work in process T-Account for August:

Work in Process – Melting Department
Aug 1 balance: (200 kilograms; 80% complete as to materials, 70% complete as to conversion)	352	Completed and transferred to the packaging department (_?_ kilograms)	___?___
Costs added:
Materials (2,050 kilograms)	890
Labour	400
Overhead	2,000

Aug 31 balance (40 kilograms, 50% complete as to materials, 60% complete as to conversion)	___?___

The August 1 work in process includes material of $100, labour of $52, and overhead of $200.

Required:

Using the weighted average method, prepare a production cost report for the company.

Question 2:

Traffic Control Systems makes bright rubber traffic cones. The company has two departments, Melting and Forming. Raw materials are introduced at various stages throughout the melting process. The following is the department’s work in process T-Account for August:

Work in Process – Melting Department
Aug 1 balance: (200 kilograms; 80% complete as to materials, 70% complete as to conversion)	352	Completed and transferred to the packaging department (_?_ kilograms)	___?___
Costs added:
Materials (2,050 kilograms)	890
Labour	400
Overhead	2,000

Aug 31 balance (40 kilograms, 50% complete as to materials, 60% complete as to conversion)	___?___

The August 1 work in process includes material of $100, labour of $52, and overhead of $200.

Required:

Using the weighted average method, prepare a production cost report for the company.

Expert Solution

Statement of Equivalent Units
	Materials	Conversion Cost
Completed & Transferred to packaging Department	2,210	2,210
(200 + 2,050 - 40 )
Work in Process- Aug .31 ( 40 Kg -50% M, 60% -C )	20	24
Equivalent units of production	2,230	2,234

Cost per Equivalent Units
	Materials	Conversion Cost
Cost on Aug .1	100	252
Add: Cost incurred during August	890	2,400
Total Costs to be account for	990	2,652
/ Equivalent units of production	2,230	2,234
Cost per Equivalent Units $	0.4439	1.1871

Cost Assigned to

Completed & Transferred to packaging Department	3,605	=22100.4439+22101.1871

Work in Process -Aug 31	37	=200.4439+241.1871

Total Cost Accounted for	$ 3,642

ekkarill92 answered 2 years ago

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