Honey butter, Inc., manufactures a product that goes through two departments prior to completion- the Mixing Department followed by the Packaging Department. The following information is available about work in the first department, the Mixing Department, during June.
| |
Percent Completed
|
| |
Units |
Materials |
Conversion |
| Work in process, beginning |
106,000 |
70% |
40% |
| Started into production |
503,000 |
|
|
| Completed and transferred out |
493,000 |
|
|
| Work in process, ending |
116,000 |
75% |
25% |
| |
Materials |
Conversion |
| Work in process, beginning |
$ |
45,500 |
$ |
16,900 |
| Cost added during June |
$ |
488,100 |
$ |
358,940 |
Required:
Assume that the company uses the weighted-average method.
1. Determine the equivalent units for June for the Mixing Department.
Materials Conversion
Equivalent units of production
2. Compute the costs per equivalent unit for June for the Mixing Department. (Round your answers to 2 decimal places.)
Materials Conversion
Cost per equivalent unit
3. Determine the total cost of ending work in process inventory and the total cost of units transferred to the Packaging Department. (Round your intermediate calculation to 2 decimal places and final answers to the nearest whole dollar amount.)
Total
Cost of ending work in process inventory
Cost of units completed and transferred out
4. Prepare a cost reconciliation report for the Mixing Department for June. (Round your intermediate calculation to 2 decimal places and final answers to the nearest whole dollar amount.)
Cost Reconciliation
Costs to be accounted for:
Cost of ending work in process inventory Cost of units completed and transferred out Cost of beginning work in process inventory
Cost of ending work in process inventory Cost of units completed and transferred out Costs added to production during the period