Question

Dolls manufactures dolls. Materials are added at the beginning of the process and conversion
costs are incurred evenly throughout the process. Data for July follows:
Production Data
Units Percent Complete
Units in process, July 1 120 75%
Units started into production 380
Units in process, July 31 100 50%
Cost Data
Work in process, July 1: Costs added during the
month:
Materials $1,000 Materials $4,000
Labour 500 Labour 300
Manufacturing overhead 750 Manufacturing overhead 2,500
Required:
Using the weighted average method, prepare a production cost report for the company

Answer 1

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

	Physical unit	Direct material	Conversion cost
Units to be accounted for
Beginning work in process	120
Unit started	380
Total units	500
Units accounted for
Transferred out	400	400	400
Ending work in process	100	100	50
Total Unit	500	500	450
COSTS
Unit cost		Material	Conversion	Total
Beginning work in process		1000	1250	2250
Cost added		4000	2800	6800
Total cost		5000	4050	9050
Equivalent unit		500	450
Unit cost		10	9	19
Cost to be accounted for
Beginning work in process				2250
Started into production				6800
Total cost				9050
Cost reconciliation schedule
Cost accounted for
Cost of units transferred out				7600
Ending work in process
Material			1000
Conversion			450	1450
Total cost accounted for				9050