Reference no: EM133128315
Question - Building a kayak using the composite method is a very labour-intensive process. In the fabrication department, the kayaks go through several steps as employees carefully place layers of Kevlar® in a mould and then use resin to fuse together the layers. The excess resin is removed with a vacuum process, and the upper shell and lower shell are removed from the moulds and assembled.
The seat, hatch, and other components are added in the finishing department.
At the beginning of April, Current Designs had 29 kayaks in process in the fabrication department. Rick Thrune, the production manager, estimated that about 80% of the material costs had been added to these boats, which were about 50% complete with respect to the conversion costs. The cost of this inventory had been calculated to be $8,450 in materials and $8,180 in conversion costs.
During April, 78 boats were started into production. At the end of the month, the 35 kayaks in the ending inventory were 20% complete as to materials and 40% complete as to conversion costs.
A review of the accounting records for April showed that materials with a cost of $17,620 had been requisitioned by this department and that the conversion costs for the month were $44,280.
Complete a production cost report for April 2022 for the fabrication department using the weighted-average method. Direct materials and conversion costs are incurred uniformly throughout the process.
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