Yarmouth Company produces a liquid solvent in two departments: Mixing and Finish

Question

Yarmouth Company produces a liquid solvent in two departments: Mixing and Finishing. Accounting records at Yarmouth show the following information for Finishing operations for February (no new material is added in the Finishing Department): WIP inventory—Finishing Beginning inventory (11,300 units, 25% complete with respect to Finishing costs) Transferred-in costs (from Mixing) $ 136,510 Finishing conversion costs 11,085 Current work (100,600 units started) Mixing costs 1,016,060 Finishing costs 547,695 The ending inventory has 15,300 units, which are 50 percent complete with respect to Finishing Department costs and 100 percent complete for Mixing Department costs. Required: Complete the production cost report using the weighted-average method. (Round "Cost per equivalent unit" to 2 decimal places.)

Explanation / Answer

Production cost report:

equivalent units

Mixing department

Finishing

Department

Units to be accounted for:

$10.30

(1152570/111900)

$5.36

(558780/104250)

$1,512,756

$994,980

(96600×$10.30)

(15300×$10.30)

$517,776

(96600×$5.36)

(7650×$5.36)

$157,590

(15300×10.30)

$41,004

(7650×$5.36)

Physical units

equivalent units

Mixing department

Finishing

Department

Units to be accounted for:

Beginning WIP inventory 11,300 Units started this period 100,600 Total units to account for 111,900 Units accounted for: Complete and transferred out(111900-15300) 96,600 96600 96600 Units in ending inventory 15,300 15,300(100%) 7650(50%) Total units accounted for 111,900 111,900 104,250

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