Weighted Average Process Costing Minot Processing Company manufactures one produ

Question

Weighted Average Process Costing
Minot Processing Company manufactures one product on a continuous basis in two departments, Processing and Finishing. All materials are added at the beginning of work on the product in the Processing Department. During November 2017, the following events occurred in the Processing Department:

Additional information follows:

Minot uses weighted average costing and applies manufacturing overhead to Work-in-Process at the rate of 100 percent of direct labor cost.

Ending inventory in the Processing Department consists of 4,500 units that are one-third converted.

Beginning inventory contained 2,000 units, one-half converted, with a cost of $27,300 ($17,300 for materials and $10,000 for conversion).

(a) Prepare a cost of production report for the Processing Department for November.

Do not use negative signs with any of your answers.

Cost per equivalent unit in process

(Round answers two decimal places.)

(b) Prepare an analysis of all changes in Work-in-Process.

Do not use negative signs with any of your answers.

Units started 17,000 units Units completed and transferred to Finishing Department 14,500 units

Explanation / Answer

a. Cost of Production Report

b.

Summary of units in process: Beginning 2000 Units started 17000 In process 19000 Completed 14500 Ending 4500 Equivalent units in process: Materials Conversion Total Units completed 14500 14500 Plus equivalent units in ending inventory 4500 1500 Equivalent units in process 19000 16000 Total cost to be accounted for and cost per equivalent unit in process: Beginning work-in process $17300 $10000 $27300 Current costs 296200 206000 502200 Total cost in process $313500 $216000 $529500 Equivalent units in process 19000 16000 $16.50 $13.50 $30.00 Accounting for total costs: Transferred out $435000 Ending work in process: Materials 4500 x 16.50
= $74250 Conversion 1500 x 13.50
= $20250 $94500 Total cost accounted for $529500

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