Question

Production Report, Weighted Average

Manzer Inc. manufactures bicycle frames in two departments: cutting and welding. Manzer uses the weighted average method. Manufacturing costs are added uniformly throughout the process. The following are cost and production data for the cutting department for October:

Production:
Units in process, October 1, 40% complete	5,600
Units completed and transferred out	38,080
Units in process, October 31, 60% complete	11,200
Costs:
WIP, October 1	$ 44,800
Costs added during October	851,200

Required:

Prepare a production report for the cutting department. Round cost per equivalent unit to the nearest cent. Use this rounded amount for further calculations. If an amount box does not require an entry, leave it blank or enter "0".

Manzer Inc.
Cutting Department Production Report
For the Month of October (Weighted Average Method)
Unit Information
Physical flow:
Units in beginning WIP
Units started
Total units to account for
Equivalent units:
Units completed
Units in ending WIP
Total units accounted for:
Equivalent units:
Units completed
Units in ending WIP
Total equivalent units
Cost Information
Costs to account for:
Beginning WIP			$
Incurred during October
Total costs to account for			$
Cost per equivalent unit			$
Costs accounted for:
	Transferred Out	Ending Work in Process	Total
Goods transferred out	$	$	$
Goods in ending WIP
Total costs accounted for	$	$	$

Answer 1

Prepare a production report for the cutting department. Round cost per equivalent unit to the nearest cent. Use this rounded amount for further calculations. If an amount box does not require an entry, leave it blank or enter "0".

Manzer Inc.
Cutting Department Production Report
For the Month of October (Weighted Average Method)
Unit Information
Physical flow:
Units in beginning WIP			5600
Units started			43680
Total units to account for			49280
Equivalent units:
Units completed			38080
Units in ending WIP			11200
Total units accounted for:			49280
Equivalent units:
Units completed			38080
Units in ending WIP (11200*60%)			6720
Total equivalent units			44800
Cost Information
Costs to account for:
Beginning WIP			$44800
Incurred during October			851200
Total costs to account for			$896000
Cost per equivalent unit			$20
Costs accounted for:
	Transferred Out	Ending Work in Process	Total
Goods transferred out	38080*20 = 761600		$761600
Goods in ending WIP		6720*20 = 134400	134400
Total costs accounted for	$761600	$134400	$896000