Thursday, August 15, 2013

Honeybutter, Inc., manufactures a product that goes through two departments prior to completion

Honeybutter, Inc., manufactures a product that goes through two departments prior to completion— the Mixing Department followed by the Packaging Department. The following information is available about work in the first department, the Mixing Department, during June.







Percent Completed



Units

Materials

Conversion

Work in process, beginning

70,000

70%

40%

Started into production

460,000





Completed and transferred out

450,000





Work in process, ending

80,000

75%

25%





Materials

Conversion

Work in process, beginning

$

36,550

$

13,500

Cost added during June

$

391,850

$

287,300



Required:

Assume that the company uses the weighted-average method.



1.

Determine the equivalent units for June for the Mixing Department.

2.

Compute the costs per equivalent unit for June for the Mixing Department. (Round your answers to 2 decimal places. Omit the \"$\" sign in your response.)

3.

Determine the total cost of ending work in process inventory and the total cost of units transferred to the Packaging Department. (Omit the \"$\" sign in your response.)

4.

Prepare a cost reconciliation report for the Mixing Department for June. (Omit the \"$\" sign in your response.)


Click here for the SOLUTION

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