Instructions Production Repor, Weighted Average Murray Inc. manufactures bicycle
ID: 2416628 • Letter: I
Question
Instructions Production Repor, Weighted Average Murray Inc. manufactures bicycle frames in two departments: Cutting and Welding. Murray uses the weighted average method. Manufacturing costs are added uniformly throughout the process. The following re cost and production data for the cutting department for October: Production: Units in process, October 1, 40% complete Units completed and transferred ouft Units in process, October 31, 60% complete Costs: WIP, October 1 Costs added during October 10,000 68,000 20,000 $75,000 1,470,000 Production Report Prepare a production report for the cutting department. Round cost per equivalent unit to the nearest cent. Use this rounded amount for further calculations. Cutting Department Production Report For the Month of October (Weighted Average Method nit Informatio Physical flow: Units in beginning WIP Units started Total units to account for Equivalent units: Units completed Units in ending WIP Total units to account for Equivalent units: Units completed Units in ending WIP Total equivalent units Cost Information Costs to account for: Beginning WIPExplanation / Answer
Cutting Department
Production report
For the month of October (Weighted Average Method)
Unit Information:
Physical flow:
Units in beginning WIP
10000
Units started (68000+20000-10000)
78000
Total units to Account for
88000
Units Completed
68000
Units in ending WIP
20000
Total units Accounted for
88000
Equivalent Units:
Units Completed
68000
Units in ending WIP = 20000*60% =
12000
Total Equivalent Units
80000
Cost Information:
Cost to account for:
Beginning WIP
$ 75,000
Incurred During October
$ 1,470,000
Total Cost to account for
$ 1,545,000
Cost Per Equivalent Unit = (1545000/ 80000)
$ 19.3125
Cost Accounted for:
Good Transferred Out = 68000 Units * $19.3125
$ 1,313,250
Goods in Ending WIP = 12000 units * $19.3125
$ 231,750
Total Cost Accounted for
$ 1,545,000
Cutting Department
Production report
For the month of October (Weighted Average Method)
Unit Information:
Physical flow:
Units in beginning WIP
10000
Units started (68000+20000-10000)
78000
Total units to Account for
88000
Units Completed
68000
Units in ending WIP
20000
Total units Accounted for
88000
Equivalent Units:
Units Completed
68000
Units in ending WIP = 20000*60% =
12000
Total Equivalent Units
80000
Cost Information:
Cost to account for:
Beginning WIP
$ 75,000
Incurred During October
$ 1,470,000
Total Cost to account for
$ 1,545,000
Cost Per Equivalent Unit = (1545000/ 80000)
$ 19.3125
Cost Accounted for:
Good Transferred Out = 68000 Units * $19.3125
$ 1,313,250
Goods in Ending WIP = 12000 units * $19.3125
$ 231,750
Total Cost Accounted for
$ 1,545,000