1 think we goofed when we hired that new assistant controller.\" sald Ruth Scarp

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1 think we goofed when we hired that new assistant controller." sald Ruth Scarpino, president of Provost Industries. Just look at this report that he prepared for last month for the Finishing Department. I can't understand it" Finishing Department costs: Hork in process inventory, April 55e units; aterials 1ee% 8,442 complete; conversion 6ex complete Costs transferred in during the month from the preceding department, 2,ese units Materials cost added during the month Conversion costs incurred during the month 19,466 7,870 15, 740 $ 58,718 Total departmental costs Finishing Department costs assigned to: Units completed and transferred to finished goods, 2,000 units at $25.360 per unit s 50,718 Work in process inventory, April 30, 600 units materials ex completes conversion 40% complete Total departmental costs assigned s 50,718 Consists of cost transferred in, $4,272: materials cost. $1,990: and conversion cost, $2.180. He's struggling to learn our system," replied Frank Harrop. the operations manager. The problem is that he's been away from process costing for a long time. and it's coming back siowly Tt's not just the format of his report that I'm concerned about. Look at that $25.360 unit cost that he's come up with for Apri. Doesn't Yes, it does seem high; but on the other hand, I know we had an increase in materials prices during April, and that may be the explanation, replied Mr. Harrop. "1ll get someone else to redo this report and then we can see what's going on. Provost Industries manufactures a ceramic product that goes through two processing departments-Molding and Finishing. The company uses the weighted-average method in its process costing

Explanation / Answer

Solution 1a:

Solution 1b:

Solution 1c and 1d:

Computation of Equivalent unit of Production - Finishing Department Particulars Physical Units Transferred in cost Material Conversion Unit completed & Transferred out 2000 2000 2000 2000 Closing WIP: 600 Prior deparment cost (100%) 600 Material (0%) 0 Conversion (40%) 240 Equivalent units of production 2600 2600 2000 2240

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