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Question - Surf Products Company uses an automated process to clean and polish its souvenir items. For March, the company had the following activities:
Beginning work in process inventory
3,000 items, 1/3 complete
Units placed in production
12,000 units
Units completed
9,000 units
Ending work in process inventory
6,000 items, 1/2 complete
Cost of beginning work in process
Direct Materials: $2,025
Conversion Costs: $475
Direct material costs, current
$9,000
Conversion costs, current
$7,700
Direct materials are placed into production at the beginning of the process and conversion costs are incurred evenly throughout the process.
Required: Prepare a production cost worksheet using the WEIGHTED AVERAGE method.
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