# Question & Answer: 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 Com…..

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.

 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