Question

Weighted Average Process Costing
Minot Processing Company manufactures one product on a continuous basis in two departments, Processing and Finishing. All materials are added at the beginning of work on the product in the Processing Department. During November 2017, the following events occurred in the Processing Department:

Units started	17,000 units
Units completed and transferred to Finishing Department	14,500 units

Costs assigned to processing
Raw materials (one unit of raw materials for each unit of product started)	$296,200
Manufacturing supplies used	18,000
Direct labor costs incurred	103,000
Supervisors' salaries	12,000
Other production labor costs	14,000
Depreciation on equipment	6,000
Other production costs	18,000

Additional information follows:

• Minot uses weighted average costing and applies manufacturing overhead to Work-in-Process at the rate of 100 percent of direct labor cost.
• Ending inventory in the Processing Department consists of 4,500 units that are one-third converted.
• Beginning inventory contained 2,000 units, one-half converted, with a cost of $27,300 ($17,300 for materials and $10,000 for conversion).

(a) Prepare a cost of production report for the Processing Department for November.

Do not use negative signs with any of your answers.

Cost per equivalent unit in process

(Round answers two decimal places.)

Processing Department Cost of Production Report For the Month Ending November 30, 2017 Summary of units in process: Beginning Answer Units started Answer In process Answer Completed Answer Ending Answer Equivalent units in process: Materials Conversion Total Units completed Answer Answer Plus equivalent units in ending inventory Answer Answer Equivalent units in process Answer Answer Total cost to be accounted for and cost per equivalent unit in process: Beginning work-in-process $Answer $Answer $Answer Current costs Answer Answer Answer Total cost in process $Answer $Answer $Answer Equivalent units in process �Answer �Answer Cost per equivalent unit in process $Answer $Answer $Answer Accounting for total costs: Transferred out $Answer Ending work-in-process: Materials $Answer Conversion Answer Answer Total cost accounted for $Answer (b) Prepare an analysis of all changes in Work-in-Process. Work-in-process: Beginning $Answer Current manufacturing costs: Direct materials $Answer Direct labor Answer Applied overhead Answer Answer Total $Answer Cost of goods manufactured Answer Ending $Answer

Answer 1

UNITS TO ACCOUNT FOR:
Beginning Work in Process units		2,000
Add: Units Started in Process		17,000
Total Units to account for:		19,000
UNITS TO BE ACCOUNTED FOR:
Units completed			14,500
Ending Work in Process		4,500
Total Units to be accounted for:	19,000
Equivalent Units:
			Material Cost	Conversion
			% Completion	Units	% Completion	Units
Units completed		100%	14,500	100%	14,500
Ending Work in Process	100%	4,500	33%	1,500
Total Equivalent units		19,000		16,000
TOTAL COST TO ACCOUNT FOR:
			Material		Conversion
Beginning work in Process	17,300		10,000
Cost Added during May	2,96,200		2,06,000	(103000+100%)
Total Cost to account for:	3,13,500		2,16,000
Total Cost to account for:			5,29,500
COST PER EQUIVALENT UNIT:
			Material		Conversion
Total cost added during the year	3,13,500		2,16,000
Equivalent Units		19,000		16,000
Cost per Equivalent unit	16.5		13.5
TOTAL COST ACCOUNTED FOR:
Units completed and Transferred out (14,500 units)
			Equivalent unit	Cost per EU	Total Cost
Material			14,500	16.5	239250
Conversion Cost		14,500	13.5	195750
Total Cost of Units completed and transferred out:	435000
Ending Work in process (4500 units)
			Equivalent unit	Cost per EU	Total Cost
Material			4,500	16.5	74250
Conversison Cost		1,500	13.5	20250
Total cost of Ending Work in process:		94,500
Total Cost of completed units			5,29,500
Analysis:
Beginning WIP inventory		27,300
Add: Current manufacturing cost
Material			2,96,200
Labor			1,03,000
Overheads		1,03,000
Total current manufacturing cost	502200
Total cost of WIP			5,29,500
Less: Cost of goods manufactured	435000
Ending work in process inventory	94500