Cost of Production Report: Average Cost Method Use the average cost method with
ID: 2337972 • Letter: C
Question
Cost of Production Report: Average Cost Method
Use the average cost method with the following data:
Prepare a cost of production report for the Cutting Department of Tanner Carpet Company for December 2016 using the average cost method. If required, round your cost per equivalent unit answer to two decimal places.
Work in process, December 1, 3,900 units, 70% completed $23,478 Materials added during December from Weaving Department, 73,700 units 431,145 Direct labor for December 106,214 Factory overhead for December 63,953 Goods finished during December (includes goods in process, December 1), 72,100 units — Work in process, December 31, 5,500 units, 10% completed — Cost of Production Report: Average Cost Method Use the work in process, December 1, 3,900 units, 70% completed Materials added during Dacember from aaving Department, 73.700 units Direct labor for December Factory ovarhead for December Goods finished during December (includes goods in process, December 1), 72,100 units Work in process, December 31, 5,500 units, 10% completed Prepare a cost of production report for the Cutting Department of Tanner Carpet Company for December 2016 using the average cost method. If required, round your cost per equivalent unit answer to two decimal places. average cost method with the following data 523,478 431,145 106,214 53,953 Tanner Carpet Company Cost of Production Report-Cutting Department For the Month Ended December 31, Units charged to production: Inventory in process, Decamber 1 Recelved from Weaving Department Total units accounted for by the Cutting Department Units to be assigned costs 77,600 Whole Units Equivalent Units of Transferred to finished goods in December Inventory in process, Dacamber 31 Total units to be assigned costs Cost Information Costs per equivalent unit: Costs Total costs for December in Cutting Department Total equivalant units Cost per equivalent unit Costs assigned to productions Inventory in process, December 1 Costs incurred in December Total costs accounted for by the Cutting Department Costs allocated to completed and partially completed units: Transferred to finished goods in December Inventory in process, December 31 Total costs assigned by the Cutting DepartmantExplanation / Answer
Tanner Carpet Company Cost of Production Report-Cutting Department For the Month Ended December 31, 2016 Unit Information Units charged to production: Inventory in process, December 1 3900 Received from Weaving Department 73700 Total units accounted for by the Cutting Department 77600 Units to be assigned costs: Whole Units Equivalent Units of Production Transferred to finished goods in December 72100 72100 Inventory in process, December 31 5500 550 Total units to be assigned costs 77600 72650 Cost Information Costs per equivalent unit: Costs Total costs for December in Cutting Department 624790 Total equivalent units 72650 Cost per equivalent unit 8.6 Costs assigned to production: Inventory in process, December 1 23478 Costs incurred in December 601312 Total costs accounted for by the Cutting Department 624790 Costs allocated to completed and partially completed units: Transferred to finished goods in December 620060 =72100*8.6 Inventory in process, December 31 4730 =550*8.6 Total costs assigned by the Cutting Department 624790