Question

In: Accounting

On May 1, the Mixing department had 250 rolls of paper in process. During March, the...

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

Solutions

Expert Solution

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

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