Production Cost Accounting – Weighted Average Method
Maple, Inc. manufactures syrup that goes through three processing stages prior to completion. Information on work in the first department, blending, is given below for August:
|
Production Data: |
||
|
|
Pounds in process, August 1; materials 100% complete; conversion 70% complete |
3,000 |
|
|
Pounds started into production during August |
85,000 |
|
|
Pounds completed and transferred out |
? |
|
|
Pounds in process, August 31; materials 80% complete; conversion 30% complete |
6,000 |
|
Cost Data: |
||
|
|
Work in process inventory, August 1: Materials cost |
$900 |
|
|
Conversion cost |
$5,900 |
|
|
Cost added during May: Materials cost |
$151,000 |
|
|
Conversion cost |
$161,700 |
The company uses the weighted-average method.
Instructions:
Use an excel document with each tab labeled by item number, which demonstrates the following:
1. Compute the equivalent units of production.
2. Determine the cost of ending work in process inventory and of the units transferred out to the next department.
3. Prepare a cost reconciliation schedule for the month.
Provide your answers in a clearly organized Excel spreadsheet. Provide a brief paragraph explaining each calculation. Check spelling and formatting for readability. Document your sources, APA citations.
0 comments