In: Accounting
On May 1, the Mixing department had 250 rolls of paper in process. During March, the Mixing Dept. completed the mixing process for those 250 rolls and also started and completed the mixing process for an additional 4,350 rolls of paper. The Dept. started but did not finish the mixing process for an addiontal 500 rolls, which were 20% complete the respect to both direct materials and conversion work at the end of May. Direct meterials and conversion costs are incurred evenly througout the mixing process.
1-Prepare a production cost report for the Mixing Dept. for May.( The company uses the weighted-average method. Round all cost per unit amounts to nearst cent and all other to nearest whole dollar).
2-Journalize all transactions affecting the company's mixing process during March. Assume labor costs are accrued and not yet paid.
Direct material | Direct Labor | MOH | Total cost | |
BL on April 1 | 250 | 455 | 190 | 895 |
Cost added during the March | 5578 | 4900 | 3150 | 13628 |
Total cost | 5828 | 5355 | 3340 | 14523 |
PRODUCTION REPORT - WEIGHTED AVERAGE METHOD | ||||||||||
Quantity Schedule and Equivalent Units | ||||||||||
Quantity | Percentage Complete: | |||||||||
Schedule | Materials | Conversion | ||||||||
Units to be accounted for: | Beginning: | NA | * | NA | * | |||||
Work in process, beginning | 250 | * | ||||||||
Started into production | 4850 | * | Ending: | 20% | * | 20% | * | |||
Total units to be accounted for | 5,100 | |||||||||
Equivalent Units | ||||||||||
Units accounted for as follows: | Direct Materials | Direct Labor | MOH | |||||||
Transferred Out | 4600 | * | 4,600 | 4,600 | 4,600 | |||||
Work in process, ending | 500 | * | 100 | 100 | 100 | |||||
Total units accounted for | 5,100 | 4,700 | 4,700 | 4,700 | ||||||
Unit Costs | ||||||||||
Work in process, beginning | 895 | 250 | * | 455 | * | 190 | ||||
Cost added by the department | 13,628 | 5,578 | * | 4,900 | * | 3,150 | ||||
Total cost (a) | 14,523 | 5,828 | 5,355 | 3,340 | ||||||
Equivalent units (b) | 4,700 | 4,700 | 4,700 | |||||||
Unit cost, (a)/(b) | 3.09 | = | 1.24 | + | 1.14 | + | 0.71 | |||
Cost Reconciliation | Equivalent Units (EU) | |||||||||
Costs | ||||||||||
Cost to be accounted for: | ||||||||||
Work in process, beginning | 895 | |||||||||
Cost added by the department | 13,628 | |||||||||
Total cost to be accounted for | 14,523 | |||||||||
Cost accounted for as follows: | ||||||||||
3.09 | for Transferred Out units | 14,214 | 4,600 | 4,600 | 4,600 | |||||
Work in process, ending: | ||||||||||
1.24 | for Materials per EU | 124 | 100 | |||||||
1.14 | for Labor per EU | 114 | 100 | |||||||
0.71 | for Overhead per EU | 71 | 100 | |||||||
Total work in process, ending | 309 | |||||||||
Total cost accounted for | 14,523 | |||||||||