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Question: Mercier Manufacturing produces a plastic part in three sequential departments: Extruding, Fabricating, and Packaging. Mercier uses the weighted-average process costing method to account for costs of production in all three departments. The following information was obtained for the Fabricating Department for the month of September. Work in process on September 1 had 15,000 units made up of the following: Amount Degree of Completion Prior department costs transferred in from the Extruding Department $ 79,750 100% Costs added by the Fabricating Department Direct materials $ 40,000 90% Direct labor 10,100 70% Manufacturing overhead 9,320 35% $ 59,420 Work in process, September 1 $ 139,170 During September, 75,000 units were transferred in from the Extruding Department at a cost of $436,250. The Fabricating Department added the following costs: Direct materials $ 214,200 Direct labor 64,800 Manufacturing overhead 34,280 Total costs added $ 313,280 Fabricating finished 60,000 units and transferred them to the Packaging Department. At September 30, 30,000 units were still in work-in-process inventory. The degree of completion of work-in-process inventory at September 30 was as follows: Direct materials 100% Direct labor 60 Manufacturing overhead 50
Required: a. Prepare a production cost report for September using the weighted-average method.
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