Reference no: EM131288416

Healthway uses a process-costing system to compute the unit costs of the minerals that it produces. It has three departments: Mixing, Tableting, and Bottling. In Mixing, at the beginning of the process all materials are added and the ingredients for the minerals are measured, sifted, and blended together. The mix is transferred out in gallon containers. The Tableting Department takes the powdered mix and places it in capsules. One gallon of powdered mix converts to 1,900 capsules. After the capsules are filled and polished, they are transferred to Bottling where they are placed in bottles, which are then affixed with a safety seal and a lid and labeled. Each bottle receives 60 capsules. During July, the following results are available for the first two departments (direct materials are added at the beginning in both departments): Mixing Tableting Beginning inventories Physical Units 5 gallons 4,000 capsules Costs: Direct materials 136.50 32.00 Direct labor 147.70 20.00 Overhead ? ? Transferred In - 140.00 Current Production Transferred Out 145 gallons ? capsules Ending Inventory 7 6,000 Costs: Direct materials $3,649 $1,584 Transferred In - $0 Direct labor $4,850 $1,944 Overhead ? ? Percentage of Completion Beginning inventory 45% 50% Ending Inventory 60% 40% Overhead in both departments is applied as a percentage of direct labor costs. In the Mixing Department, overhead is 240 percent of direct labor. In the Tableting Department, the overhead rate is 175% of direct labor. Materials are added at the beginning of the process. Required: 1 Prepare a production report for the Mixing Department and Tableting Department using the weighted average method. 2 Prepare a production report for each department using the FIFO method.