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Product Cost Report—Weighted Average Method
Reston Manufacturing Corporation produces a cosmetic product in three consecutive processes. The costs of Department 1 for May 2016 were as follows:
| Cost of beginning inventory | ||
| Direct material | $19,600 | |
| Conversion costs | 33,180 | |
| Costs added in Department 1 | ||
| Direct material | $590,800 | |
| Direct labor | 597,100 | |
| Manufacturing overhead | 406,260 | 1,594,160 |
Department 1 handled the following units during May:
| Units in process, May 1 | 2,000 |
| Units started in Department 1 | 40,000 |
| Units transferred to Department 2 | 39,000 |
| Units in process, May 31 | 3,000 |
On average, the May 1 units were 30% complete. The May 31 units were 60% complete. Materials are added at the beginning of the process, and conversion costs occur evenly throughout the process in Department 1. Reston uses the weighted average method for process costing.
Required
Prepare the product cost report for Department 1 for May.
Round average cost per equivalent unit to four decimal places. Use rounded answers for subsequent calculations. Round other answers to the nearest whole number.
| Reston Manufacturing Corporation Department 1 Flow of Units and Equivalent Units Calculations, May 2016 |
||||||
|---|---|---|---|---|---|---|
| Equivalent Units | ||||||
| % Work Done |
Direct Materials |
% Work Done |
Conversion Costs |
|||
| Complete/Transferred | Answer | Answer % | Answer | Answer % | Answer | |
| Ending Inventory | Answer | Answer % | Answer | Answer % | Answer | |
| Total | Answer | Answer | Answer | |||
| Product Cost Report | ||||||
|---|---|---|---|---|---|---|
| Direct Materials |
Conversion Costs |
|||||
| Beginning Inventory | $Answer | $Answer | $Answer | |||
| Current | Answer | Answer | Answer | |||
| Total Costs to Account For | $Answer | $Answer | $Answer | |||
| ÷ Total Equivalent Units | Answer | Answer | ||||
| Average cost / Equivalent unit (round four decimal places) | $Answer | $Answer | ||||
| Complete / Transferred: | ||||||
| Direct Materials | $Answer | |||||
| Conversion costs | Answer | |||||
| Cost of Goods Manufactured | $Answer | |||||
| Ending Inventory: | ||||||
| Direct Materials | $Answer | |||||
| Conversion costs | Answer | |||||
| Cost of Ending Inventory | $Answer | |||||
| Total Costs Allocated | $Answer | |||||
Expert Answer
| 1) | Reston Manufacturing Corporation Department 1 | |||||||
| Flow of units and equivalent units calculations, May 2016 | ||||||||
| Equivalent units | ||||||||
| % work done | Direct Materials | % work done | Conversion cost | |||||
| Completed/Transferred | 39,000 | 100% | 39,000 | 100% | 39,000 | |||
| Ending Inventory | 3,000 | 60% | 1,800 | 60% | 1,800 | |||
| Total | 42,000 | 40,800 | 40,800 | |||||
| 2) | Product cost report | Direct Materials | Conversion cost | Total | ||||
| Beginning Inventory | $ 19,600.00 | $ 33,180.00 | $ 52,780.00 | |||||
| Current | $ 5,90,800.00 | $ 10,03,360.00 | $ 15,94,160.00 | |||||
| Total cost to account for | $ 6,10,400.00 | $ 10,36,540.00 | $ 16,46,940.00 | |||||
| ÷ Total equivalent units | 40,800 | 40,800 | ||||||
| Average cost / Equivalent unit | $ 14.9608 | $ 25.4054 | ||||||
| Complete/Transferred: | ||||||||
| Direct Material | 39,000 | x | $ 14.9608 | = | $ 5,83,471 | |||
| Conversion cost | 39,000 | x | $ 25.4054 | = | $ 9,90,810 | |||
| Cost of goods manufactured | $ 15,74,281 | |||||||
| Ending Inventory: | ||||||||
| Direct Material | 1,800 | x | $ 14.9608 | = | $ 26,929 | |||
| Conversion cost | 1,800 | x | $ 25.4054 | = | $ 45,730 | |||
| Cost of ending Inventory | $ 72,659 | |||||||
| Total Costs Allocated | $ 16,46,940 | |||||||
