Product Cost Report—Weighted Average Method
Gomez Manufacturing Corporation produces a dandruff shampoo in three consecutive processes. The costs of Department 1 for June 2016 were as follows:
Department 1 handled the following units during June:
On average, the June 1 units were 40% complete; the June 30 units were 70% complete. Direct materials are added at the beginning of the process, and conversion costs occur evenly throughout the process in Department 1. Gomez uses the weighted average method for process costing.
Required
Prepare the product cost report for Department 1 for June.
Round average cost per equivalent unit to four decimal places. Use rounded answers for subsequent calculations. Round other answers to the nearest whole number.
| Cost of beginning inventory |
| Direct material | | $16,500 |
| Conversion costs | | 38,220 |
| Costs added in Department 1 |
| Direct material | $671,010 | |
| Direct labor | 1,074,900 | |
| Manufacturing overhead | 466,200 | 2,212,110 |
Product Cost Report-Weighted Average Method Gomez Manufacturing Corporation produces a dandruff shampoo in three consecutive processes. The costs of Department 1 for June 2016 were as follows Cost of beginning inventory Direct material $16,500 Conversion costs 38,220 Costs added in Department 1 $671,010 Direct material Direct labor Manufacturing overhead 1,074,900 466,200 2,212,110 Department 1 handled the following units during June 2,000 Units in process, June 1 Units started in Department 1 Units transferred to Department 2 Units in process, June 30 46,000 1,000 On average, the une 1 units were 40% complete: the une 30 units were 70% complete. Direct materials are added at the beginning of the process, and conversion costs occur evenly throughout the process in Department 1. Gomez uses the weighted average method for process costing. Required Prepare the product cost report for Department 1 for June Round average cost per equivalent unit to four decimal places. Use rounded answers for subsequent calculations. Round other answers to the nearest whole number Gomez Manufacturing Corporation Department 1 Flow of Units and Equivalent Units Calculations, June 2016 Equivalent Units % Work Done Direct Materials % Work Done Conversion Costs Complete/Transferred Ending Inventory otal Product Cost Report Direct Materials Conversion Costs eginning Inventory Current Total Costs to Account For ÷ Total Equivalent Units Average cost / Equivalent unit (round four decimal places) Complete /Transferred: Direct Materials Conversion cOSts Cost of Goods Manufactured Ending Inventory Direct Materials Conversion cOSts Cost of Ending Inventory Total Costs Allocated
a) equivalent unit :
Production cost report :
1555646
| Physical unit | % | equivalent unit of material | % | Equivalent unit of conversion |
| Unit completed and transferred out | 46000 | 100% | 46000 | 100% | 46000 |
| Ending work in process | 1000 | 100% | 1000 | 70% | 700 |
| Total | | | 47000 | | 46700 |
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