Cost of Production Report: Average Cost Method Use the average cost method with
ID: 2406284 • 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 Dalton Carpet Company for January using the average cost method. If required, round your cost per equivalent unit answer to two decimal places.
Work in process, January 1, 4,800 units, 90% completed $45,696 Materials added during January from Weaving Department, 90,700 units 838,975 Direct labor for January 209,953 Factory overhead for January 140,392 Goods finished during January (includes goods in process, January 1), 88,800 units — Work in process, January 31, 6,700 units, 30% completed — Use the average cost methed wilth the foloing data Matertals added duing Jenwary from Weaeving Department 90,700 Direct labor for anuary $45/696 209-933 140.??? Prepare a cost of production neport for the Cuitting Department of Dalton Carpet Company for Dalton Carpet Company Cost of Unts to be aigExplanation / Answer
Solution:
Dalton Carpet Company Cost of Production Report-Cutting Department For the Month Ended January 31 Unit Information Units charged to production: Inventory in process, January 1 4800 Received from Weaving Department 90700 Total units accounted for by Cutting Department 95500 Units to be assigned costs: Whole units Equivalent Units of production Transferred to Finished goods in january 88800 88800 Inventory in process, January 31 6700 2010 Total units to be assigned costs 95500 90810 Cost Information Cost per Equivalent Unit: Costs Total costs for January in Cutting Department $12,35,016 Total Equivalent Units 90810 Cost per Equivalent Unit $13.60 Costs assigned to production: Inventory in process, January 1 $45,696 Costs incurred in January $11,89,320 Total costs accounted for by the Cutting Department $12,35,016 Costs allocated to completed and partially completed units: Transferred to finished goods in January (88800*$13.60) $12,07,680 Inventory in process, January 31 (2010*$13.60) $27,336 Total costs assigned by the Cutting Department $12,35,016