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Don’t Cry Over Spilled Milk, Inc., a manufacturer of mops, uses the weighted average method in...

Don’t Cry Over Spilled Milk, Inc., a manufacturer of mops, uses the weighted average method in its processing costing system. Don’t Cry uses a traditional costing system in the allocation of its manufacturing overhead (MOH) to production; MOH costs are allocated to production on the basis of machine hours logged during the period. Total estimated MOH for the period was $300,000 and total estimated machine hours were 100,000. The following data concern the operations of the company’s first processing department, Assembly, for June 2012.

Beginning Work in Process
800? mops, ?60% complete with respect to direct? materials, 10% complete with respect to conversion
Costs in Beginning Work in Process $3,712 (of this? amount, $1,296 is for direct ?materials)
Units Started in June 16,000 mops
Direct Product Costs Added During June direct materials? $47,076; direct labor ?$216,213
Ending Work in Process 300? mops, 60% completed with respect to direct? materials, 70% complete with respect to conversion

During June, 79,325 actual machine hours were logged during production.

1. The cost to assemble one mop in June was?

2. The cost of goods completed and transferred out of the Assembly department during June equals?

3. The conversion costs included in Work in Process-Assembly at the beginning of July would equal?

??

Solutions

Expert Solution

Weighted average cost
Beggining units 800 Transferred out 16,500
Started intro production 16000 Ending units 300
Units accounted for 16800 16800
Equivalent units Material Conversion cost
Units transferred                      A 16500 16500
Ending Units 300 300
Completion 60% 70%
B 180 210
Total units 16680 16710
Cost per equivalent units
Particulars Material Conversion cost total
As at beginning 1296 2416 3712
Added during the month 47076 454188 501264
Cost to be accounted for 48372 456604 504976
Total eqivalent units 16680 16710
Cost per equivalent unit 2.90 27.33 30.23
Cost per equivalent unit = Cost to be accounted for / Total equivalent units
Cost of ending work in progress
Conversion cost
Particulars Material Total
Ending units 300 300
Cost per equivalent units 2.90 27.33
Completion 60% 70%
Total cost 522 5738 6260
Cost of goods transferred Conversion cost
Particulars Material Total
Number of units 16500 16500
Cost per equivalent units 2.90 27.33 30.23
Total amount 47850 450866 498716

ekkarill92 answered 1 year ago
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