Question

Part b process costing

Intrepid industries manufactures sterile parts used in medical equipment. The company uses the weighted-average process costing method to account for production costs. It produces parts in three different departments: Forming, Sterilization, and Assembling. The following information was reported for the assembling department for the month of June: The beginning wip for June was 250,000 units.

	amount	Degree of completion
Prior department costs transferred in from the forming	$387,600	100%
Costs added by the sterilization department:
Direct materials	$317.200	100%
Direct labor	$120,050	40%
Manufacturing overhead	$67100	30%
	$504350
Wip June 1	$891950

During June, 580000 units were transferred in from the forming department at a cost of $1,870,000. The Assembling Dept added the following costs:

Direct materials	$974800
Direct labor	$318600
Manufacturing overhead	$202000
Total costs added	$1,495,4000

Assembling finished 480000 units and transferred them to the sterilization dept. At June 30 225000 units were still in wip inventory. The degree of completion of WIP inventory at June 30 was as indicated below:

Direct materials	80%
Direct labor	65%
Manufacturing overhead	30%

A. Prepare a correctly formatted (including heading) production cost report using the weighted average method.

Answer 1