Prepare a cost of production report for the Cutting Department of Tanner Carpet
ID: 2503079 • Letter: P
Question
Prepare a cost of production report for the Cutting Department of Tanner Carpet Company
for December 2012. Use the average cost method with the following data:
Work in process, December 1, 4,500 units, 75% completed $40000
Materials added during December from Weaving Department, 85,000 units 699300
Direct labor for December 169410
Factory overhead for December 98,330 98330
Goods finished during December (Includes goods in process, December 1)83,300 Units _
Work in process, December 31, 6200 units, 10% completed _
Explanation / Answer
Calculation of Equivalent Unit (as per Weighted Method) Unit Direct Material Conversion Cost % of Completion Equivalent Unit % of Completion Equivalent Unit Unit Transferred Out 83300 100% 83300 100% 83300 Closing WIP 6200 100% 6200 10% 620 Total Equivalent Unit 89500 83920