Hanson Hahson Corporation Corporation uses the weighted-average method in its pr

Question

Hanson Hahson Corporation Corporation uses the weighted-average method in its process costing system. Data concerming the irst processing uses the system. Data concerning the first processing Beginning work in process inventory: Units in beginning work in process inventory Materials costs. Conversion costs... Percent complete with respect to maerial.... Percent complete with respect to conversion. 200 $2,200 S1,000 50% 10% 6,500 6,100 Units started into production during the month.. Units transferred to the next department during the Materials costs added during the mont... $135,000 . 312,600 Conversion costs added during the month Ending work in process inventory: Units in ending work in process inventory Percent complete with respect to materials Percent complete with respect to conversion... 600 80% 60% Note: Your answers may differ from those offered below due to rounding error. In all cases, select the answer closes t to the answer you computed. To reduce rounding error, carry out all computations to at least three decimal places. The total cost transferred from the first processing department to the next processing department during the month is to: $447,600 o $450,800 $423,316 $464,953 aua lnsuers to save all answers

Explanation / Answer

Production Cost Report - Weighted Average Equivalent Units Physical Units Materials Conversion Costs Quantities Units to be accounted for Work in process (WIP), Beginning 200 Started into production 6500 Total Units 6700 Units accounted for Units transferred out 6100 6100 6100 Work in process, Ending - 80%/60% 600 480 360 Total Units 6700 6580 6460 A Unit Costs WIP, Beginning 2200 1000 Cost during the month 135000 312600 Total Cost 137200 313600 B Cost per Equivalent units       20.851                       48.545 B÷A Transferred Cost Material 6100 x 20.851 127191.1 Conversion 6100 x 48.545 296124.5 Part 1 Ans Total transferred Cost $                423,316 C Ending WIIP Material 480 x 20.851 10008.48 Conversion 360 x 48.545 17476.2 Part 2 Ans Total Ending WIP cost $             27,484.68 D Q2 Part 1 Direct material 20 Direct labor 41 Variable manufacturing overhead 7 Total variable unit product cost 68 C Q3 Sales 1045800 =126*8300 Less: cost of goods sold 871500 =((36+52+2)+(127500/8500))*8300 Gross Profit 174300 Less: Selling and Administrative 166000 =(9*8300)+91300 Operating Income 8300 Ans D

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