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 4,800 Units completed and transferred out 32,640 Units in process, October 31, 60% complete 9,600 Costs: WIP, October 1 $ 38,400 Costs added during October 729,600 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 $ $ $ Check My Work

Answer 1

UNITS TO ACCOUNT FOR:
Beginning Work in Process units				4,800
Add: Units Started in Process				37,440
Total Units to account for:				42,240
UNITS TO BE ACCOUNTED FOR:
Units started and completed				32,640
Ending Work in Process				9,600
Total Units to be accounted for:				42,240
Equivalent Units:
			Cost
			% Completion	Units
Units started and completed			100%	32,640
Ending Work in Process			60%	5,760
Total Equivalent units				38,400
TOTAL COST TO ACCOUNT FOR:
			Material
Beginning work in Process			38,400
Cost Added during May			729,600
Total Cost to account for:			768,000
Total Cost to account for:
COST PER EQUIVALENT UNIT:
			Material
Total cost added during the year			768,000
Equivalent Units			38,400
Cost per Equivalent unit			20
TOTAL COST ACCOUNTED FOR:
Units Completed and transferred out (32640 units @20):						652800
Cost of Ending WIP (5760 eq. units @20)						115200