Chapter 6, Problem 47P Show all steps: Chapter 1 Chapter 2 Chapter 3 Chapter 4 Chapter 5 Chapter 6 10 Weighted-Average Method; Two Departments BDB Company manufactures its one product by a process that requires two departments. The production starts in Department A and is completed in Department B. Materials are added at the beginning of the process in Department A. Additional materials are added when the process is 50% complete in Department B. Conversion costs are incurred proportionally throughout the production processes in both departments. On April 1, Department A had 500 units in work-in-process estimated to be 30% complete for conversion; Department B had 300 units in work-in-process estimated to be 40% complete for conversion. During April. Department A started 2,000 units and complete 2,100 units; Department B completed 2,000 units. The work-in-process ending inventory on April 30 in Department A is estimated to be 50% complete for conversion, and the work-in-process ending inventory in Department B is estimated to be 70% complete for conversion. The cost sheet for Department A shows that the units in the work-in-process beginning inventory had $2,750 in direct materials costs and $1,494 in conversion costs. The production costs incurred in April were $18,000 for direct materials and S21,000 for conversion. Department B’s work-in-process beginning inventory on April 1 was $6,100, of which $4,200 was transferred-in costs; it incurred $38,000 in direct materials costs and $24,350 in conversion costs in April. BDB Company uses the weighted-average method for departments A and B. Required 1. Prepare a production cost report tor Department A 50 80 70 100 110 120 130 140 150 2. Prepare a production cost report for Department B. Step-by-step solution 160 170 There is no solution to this problem yet. Get help from a Chegg subject expert.
Expert Answer
Answer 1. | ||||
Weighted Average Method | ||||
Production Cost Report – Department A | ||||
Particulars | Physical Units | Equivalent Units | ||
Materials | Conversion Costs | |||
Units to be accounted for | ||||
Work in process – Beginning | 500 | |||
Started into production | 2,000 | |||
Total units | 2,500 | |||
Units accounted for | ||||
Transferred out | 2,100 | 2,100 | 2,100 | |
Work in process, Ending (2500 – 2100) | 400 | 400 | 200 | |
(100% – materials, 50% conversion costs) | ||||
Equivalent units accounted for | 2,500 | 2,500 | 2,300 | |
Costs | ||||
Unit costs | Materials | Conversion | Total | |
WIP, Beginning | 2,750 | 1,494 | 4,244 | |
Costs incurred in the period | 18,000 | 21,000 | 39,000 | |
Total Costs | 20,750 | 22,494 | 43,244 | |
Equivalent units | 2,500 | 2,300 | ||
Costs per Equivalent Units | 8.30 | 9.78 | 18.08 | |
Cost Assignment | Materials | Conversion | Total | |
Good Units completed & Transferred out (2100 Units) | 17,430 | 20,538 | 37,968 | |
Total Cost of goods completed & Transferred out | 17,430 | 20,538 | 37,968 | |
Work in Process – ending Inventory | 3,320 | 1,956 | 5,276 | |
Total Cost accounted for | 20,750 | 22,494 | 43,244 | |
Costs to be accounted for | ||||
Work in process, Beginning | 4,244 | |||
Started into production | 39,000 | |||
Total costs | 43,244 | |||
Cost Reconciliation Schedule | ||||
Costs accounted for | ||||
Transferred out | 37,968 | |||
Work in process, Ending | ||||
Materials | 3,320 | |||
Conversion costs | 1,956 | 5,276 | ||
Total costs | 43,244 | |||
Answer 2. | ||||
Production Cost Report – Department B | ||||
Particulars | Equivalent Units | |||
Physical Units | Deptt. A | Materials | Conversion Costs | |
Units to be accounted for | ||||
Work in process – Beginning | 300 | |||
Started into production | 2,100 | |||
Total units | 2,400 | |||
Units accounted for | ||||
Transferred out | 2,000 | 2,000 | 2,000 | 2,000 |
Work in process, Ending | 400 | 400 | 400 | 280 |
(100% – Deptt A, 100% – materials, 70% conversion costs) | ||||
Equivalent units accounted for | 2,400 | 2,400 | 2,400 | 2,280 |
Costs | ||||
Unit costs | Deptt. A | Materials | Conversion | Total |
WIP, Beginning | 4,200 | – | 1,900 | 6,100 |
Costs incurred | 37,968 | 38,000 | 24,350 | 100,318 |
Total Costs | 42,168 | 38,000 | 26,250 | 106,418 |
Equivalent units | 2,400 | 2,400 | 2,280 | |
Costs per Equivalent Units | 17.57 | 15.83 | 11.51 | 44.92 |
Cost Assignment | Deptt. A | Materials | Conversion | Total |
Good Units completed & Transferred out (2,000 Units) | 35,140 | 31,667 | 23,026 | 89,833 |
Total Cost of goods completed & Transferred out | 35,140 | 31,667 | 23,026 | 89,833 |
Work in Process – ending Inventory | 7,028 | 6,333 | 3,224 | 16,585 |
Total Cost accounted for | 42,168 | 38,000 | 26,250 | 106,418 |
Costs to be accounted for | ||||
Work in process, Beginning | 6,100 | |||
Started into production | 100,318 | |||
Total costs | 106,418 | |||
Cost Reconciliation Schedule | ||||
Costs accounted for | ||||
Transferred out | 89,833 | |||
Work in process, Ending | ||||
Mixing | 7,028 | |||
Materials | 6,333 | |||
Conversion costs | 3,224 | 16,585 | ||
Total costs | 106,418 |