Pearl’s Closet mass-produces luxurious sleepwear for women. Consider the followi

Question

Pearl’s Closet mass-produces luxurious sleepwear for women. Consider the following data for the flannel nightgown department for the month of January. All direct materials are added at the beginning of production in the department, and conversion costs are incurred evenly throughout production. Inspection occurs when production is 100% completed. Normal spoilage is 6,700 units for the month

77,400

89,300

14,500

89,300

29,000

913,425

$

2,728,425

repare a process cost report using the weighted average method. (Round all entries to whole amounts, e.g. 5,275.)

Explanation / Answer

PRODUCTION COST REPORT-FORMING DEPARTMENT Physical Material Conversion UNITS Units Equiv. Units Equiv. Units Units to account for: Beginning work in process 11900 Started in production 77400 Total Units to account for 89300 Units Accounted for: Completed and transferred 66700 66700 66700 Normal Spoilage 6700 6700 6700 Abnormal Spoilage 1400 1400 1400 Ending work in process 14500 14500 10875 Total Units to be accounted for 89300 89300 85675 Material Conversion Total COSTS   Cost Cost Cost Costs to account for: Beginning work in process 242,000 29000 271,000 cost added during the period 1,544,000 913,425 2,457,425 Total cost to account for 1,786,000 942,425 2,728,425 Divided by: Total EUP 89300 85675 Cost per equivalent unit 20 11 Cost Accounted for: Good Units completed: Cost of good unit (66700 units @31) 2067700    Normal Spoilage (6700 units @$31) 207700 Total cost of Transferred out 2275400 Abnormal Spilage (1400 units @$31) 43400 Ending WIP     Material (14500 units @$20) 290000     Conversion (10875 units @$11) 119625 Total Work in process ending 409625 Total cost of goods unit accounted for 2477325 Total cost accounted for 2728425

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