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Product Cost Report—Weighted Average Method Reston Manufacturing Corporation produces a cosmetic product in three consecutive processes....

Product Cost Report—Weighted Average Method

Reston Manufacturing Corporation produces a cosmetic product in three consecutive processes. The costs of Department 1 for May 2016 were as follows:

Cost of beginning inventory
Direct material $24,500
Conversion costs 41,475
Costs added in Department 1
Direct material $738,500
Direct labor 746,375
Manufacturing overhead 507,825 1,992,700

Department 1 handled the following units during May:

Units in process, May 1 2,000
Units started in Department 1 40,000
Units transferred to Department 2 39,000
Units in process, May 31 3,000


On average, the May 1 units were 30% complete. The May 31 units were 60% complete. Materials are added at the beginning of the process, and conversion costs occur evenly throughout the process in Department 1. Reston uses the weighted average method for process costing.

Required

Prepare the product cost report for Department 1 for May.

Round average cost per equivalent unit to four decimal places. Use rounded answers for subsequent calculations. Round other answers to the nearest whole number.

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Expert Solution

ekkarill92 answered 1 year ago
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