Question

Question 1:

Company has two departments. Its first department (the Melting Department) shows the following data for the month of April:

Work in process, beginning:
Units in process	400
Stage of completion with respect to materials	60%
Stage of completion with respect to conversion	85%
Costs in the beginning inventory:
Materials cost	$170
Labour cost	$160
Overhead cost	$300
Units started into production during the month	1,100
Units completed and transferred out	1,400
Costs added to production during the month:
Materials cost	$1,300
Labour cost	$800
Overhead cost	$1,700
Work in process, ending:
Units in process	???
Stage of completion with respect to materials	70%
Stage of completion with respect to conversion	80%

Required:

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

Answer 1

Answer:

RITCHIE COMPANY
Melting Department
Production Cost Report
For the Month Ended April 30
		Equivalent Units
UNITS	Physical Units	Materials	Labor	Overhead
Units to be accounted for:
Work in process, beginning	400
Started into production	1100
Total units	1500
Units accounted for:
Completed and transferred out	1400	1400	1400	1400
Work in process, ending	100	70	80	80
Total units	1500	1470	1480	1480
COSTS
Unit costs:		Materials	Labor	Overhead	Total
Total costs in April $		1470	960	2000	4430
Equivalent units		1470	1480	1480
Unit costs $		1.00	0.65	1.35	3.00
Costs to be accounted for:
Work in process, beginning $		170	160	300	630
Costs incurred during April		1300	800	1700	3800
Total costs to be accounted for $		1470	960	2000	4430
Cost Reconciliation Schedule
Costs accounted for:
Cost of units completed and transferred out
Materials (1400 x $1.00)		1400			1400
Labor (1400 x $0.65)			910		910
Overhead (1400 x $1.35)				1890	1890
Total cost of units completed and transferred					4200
Cost of work in process, ending $
Materials (70 x $1.00)		70			70
Labor (80 x $0.65)			52		52
Overhead (80 x $1.35)				108	108
Total cost of ending work in process $					230
Total costs accounted for $					4430