Cost of Production Report: Average cost Method Use the average cost method with
ID: 2418221 • Letter: C
Question
Cost of Production Report: Average cost Method
Use the average cost method with the following data:
Work in process, January 1, 3,400 units, 75% completed $ 23,000
Materials added during January from Weaving Department, 64,000 units 366,200
Direct labor for January 105,100
Factory overhead for January 80,710
Goods finished during January (includes goods in process, January 1), 63,500 units —
Work in process, January 31, 3,900 units, 10% completed —
Prepare a cost of production report for the Cutting Department of Dalton Carpet Company for January 2016 using the average cost method. If required, round your cost per equivalent unit answer to the nearest cent.
Dalton Carpet Company
Cost of Production Report-Cutting Department
For the Month Ended January 31, 2016
Unit Information
Units charged to production:
Inventory in process, January 1 ________
Received from Weaving Department _________
Total units accounted for by the Cutting Department __________
Units to be assigned costs:
Transferred to finished goods in January __________ __________
Inventory in process, January 31 ____________ ____________
Total units to be assigned costs ____________ _____________
Cost Information
Costs per equivalent unit:
Costs Total costs for January in Cutting Department $ ___________
Total equivalent units _________
Cost per equivalent unit $ __________
Costs assigned to production:
Inventory in process, January 1 $ ________
Costs incurred in January _________
Total costs accounted for by the Cutting Department $ __________
Costs allocated to completed and partially completed units:
Transferred to finished goods in January $ ___________
Inventory in process, January 31 __________
Total costs assigned by the Cutting Department $_________
Explanation / Answer
Solution:
Dalton Carpet Company Cost of Production Report - Cutting Department For the month ended January 31, 2016 Unit Information Units charged to production: Inventory in process, January 1 3,400 Received from Weaving Department 64,000 Total units accounted for by the Cutting Department 67,400 Units to be assigned costs: Tranferred to finished goods in January 63,500 63,500 Inventory in process, January 31 3,900 390 Total units to be assigned costs 67,400 63,890 Cost Information Cost per equivalent unit: Costs Total costs for January in Cutting Department $ 575010 Total equivalent units 63,890 Cost per equivalent unit $ 9 Costs assigned to production: Inventory in process, January 1 $ 23000 Costs incurred in January 552010 Total costs accounted for by the Cutting Department $ 575010 Costs allocated to completed and partially completed units: Transferred to finished goods in January $ 571500 Inventory in process, January 31 3510 Total costs assigned by the Cutting Department $ 575010