Part b process costing Intrepid industries manufactures ster

Part b process costing

Intrepid industries manufactures sterile parts used in medical equipment. The company uses the weighted-average process costing method to account for production costs. It produces parts in three different departments: Forming, Sterilization, and Assembling. The following information was reported for the assembling department for the month of June:

amount

Degree of completion

Prior department costs transferred in from the forming

$387,600

100%

Costs added by the sterilization department:

Direct materials

$317.200

100%

Direct labor

$120,050

40%

Manufacturing overhead

$67100

30%

$504350

Wip June 1

$891950

During June, 580000 units were transferred in from the forming department at a cost of $1,870,000. The Assembling Dept added the following costs:

Direct materials

$974800

Direct labor

$318600

Manufacturing overhead

$202000

Total costs added

$1,495,4000

Assembling finished 480000 units and transferred them to the sterilization dept. At June 30 225000 units were still in wip inventory. The degree of completion of WIP inventory at June 30 was as indicated below:

Direct materials

80%

Direct labor

65%

Manufacturing overhead

30%

A. Prepare a correctly formatted (including heading) production cost report using the weighted average method.

I took out pic, please be specific on what information is not clear. I couldn\'t reply to your post

	amount	Degree of completion
Prior department costs transferred in from the forming	$387,600	100%
Costs added by the sterilization department:
Direct materials	$317.200	100%
Direct labor	$120,050	40%
Manufacturing overhead	$67100	30%
	$504350
Wip June 1	$891950

Part 2: Process Costing

Solution

A. Production Report using the weighted average method :

	Physical units	Transferred units	Direct Mat.	Direct Labor	Manuf. o/h	Total
O WIP (on weighted average method)	125000	125000	125000	125000	125000
units started and completed	355000	355000	355000	355000	355000
transferred to Sterlisation deptt.	480000
C WIP	225000	225000	180000	146250	67500
Equivalent Units		705000	660000	626250	547500
Total costs:
Opening WIP		387600	317200	120050	67100
During June		1870000	974800	318600	202000
Total Costs =		2257600	1292000	438650	269100
Cost per Eq. unit		$3.20	1.96	0.70	0.49
Cost of Transferred Units		480000 * 6.35	$3048000
Cost of C WIP		720000	352800	102375	33075	$1208250