Question

Highlander Corporation is a manufacturer that uses the average cost method to account for costs of production. Highlander manufactures a product that is produced in three separate departments : Molding, Assembling and Finishing. The following information was obtained for the assembling department for the month of June: Work in process, June 1, 4,000 units composed of the following" Transferred in from the molding department amount $ 60,000, percent of completion 100%. cost added by the assembling department: direct materiasl $ 0. percent of completion 0%, direct labor $ 12,300, percent of completion 60%, factory overhead applied $ 17,000, work in proces , june 1 $ 77.000. The following activity occured during the month of June: (1) 20,000 units were transferred in from the molding department at a cost of $ 300,000. (2) Cost were added by the assembling department as follows: Direct materials $ 93,000. Direct labor $ 43,200, factory overhead $ 19,420 total $ 156,220. (3) Materials added at the end of the process. (4) 18,000 units were completed and transferred to the finishing department. At June 30, 6000 units were still in process. The degree of completion of work in process at June 30 follows: Driect labor 70%, Factory overhead 35%. Required Prepare in good form a cost of production report for the assembling department for the month of june. Show supporting computations in good form. The repor should include: a) Equivalent units of productions, b) total manufacturing costs, c) cost per equivalent unit.e) dollar amount of inventory cost transferred cost.

Answer 1