Question:
Hatch company produces a product that passes through three processes: Fabrication, Assembly, and Finishing. All manufacturing costs are added uniformly for all processes. The following information was obtained for Fabrication Department for December:
a. Direct Materials $72,720
Direct Labor $108,000
Overhead $36,000
b. During the month of June, 180,000 units were completed and transferred to the Assembly Department, and the following costs were added to production:
Direct Materials $216,000
Direct Labor $144,000
Overhead $162,000
c. On June 30, there were 45,000 partially completed units in process. These units were 80 percent complete.
Required
Prepare a cost of production report for the Fabrication Department for June using the weighted average method costing. The report should disclose the physical flows of units, equivalent units, and unit costs and should track the disposition of manufacturing costs