Reference no: EM133011326
You and your team work for Namon Pty Ltd, a health food manufacturer which produces egg white powder. A senior manager has asked the team to prepare a production cost worksheet for the second major manufacturing process using weighted average process costing.
For process 2, the Direct Materials are added at the beginning of the process and conversion costs are uniformly incurred.
At the beginning of January, work-in-process is 60% complete and at the end of the month it is 70% complete. Other data for the month includes:
Beginning work-in-process inventory 18,000 units
Units started 200,000 units
Units completed and transferred to process 3 210,000 units
Conversion costs $1,800,000
Cost of direct materials $12,400,000
Beginning work-in-process costs:
Materials $1,163,000
Conversion $826,000
Required: Show all calculations in your answers.
Problem 1: Prepare a production cost worksheet (i.e. calculate the value of closing work in process and units finished and transferred out) with supporting schedules using the weighted-average method of process-costing.