Reference no: EM131810401

Problem

Anchor Inc. uses the weighted-average method in its process costing system. The following data concern the operations of the company's first processing department for a recent month.

Work in process, beginning:
Units in process........................................................... 5,000
Costs in the beginning inventory:
Materials cost............................................................ $67,000
Conversion cost........................................................ $50,750
Units started into production during the month............. 130,000
Units completed and transferred out.............................. 120,000
Costs added to production during the month:
Materials cost............................................................... $500,000
Conversion cost........................................................... $226,000
Work in process, ending:
Units in process........................................................... 15,000
% of completion with respect to materials.................. 40%
% of completion with respect to conversion............... 20%

Required:

Prepare a process costing departmental production report (calculation of equivalent units, cost per equivalent unit, and cost reconciliation) for the department using the weighted-average method. Round the cost per unit to the nearest cent.