Exercise 69 Cost ReconciliationWeightedAverage Method LO5 Th

Exercise 6-9 Cost Reconciliation-Weighted-Average Method [LO5] The Shop Supply Company produces rolls of disposable shop towels that it supplies to auto parts outlets and industrial cleaning supplies distributors. Shop towels are similar to paper towels, but they are thicker and more durable and textured to deal more effectively with grease and grime than the traditional paper towel sold for home use. The continuous sheet of paper material is run through the Sizing and Rolling Department, where the paper is cut to the appropriate length and rolled onto cardboard tubes. The rolls then move on to the Packaging Department, where they are shrink-wrapped and packed into cases for delivery to customers During March, the Sizing and Rolling Department transferred 38,000 rolls of paper to the Packaging Department. The ending inventory in March in the Sizing and Rolling Department consisted of 4,000 rolls that were 100% complete with respect to materials and 85% complete with respect to conversion. The costs per equivalent unit for the month were materials, $11.80, and conversion, $5.30 Required. Prepare the cost reconciliation portion of the Sizing and Rolling Department\'s production report for March Materials Conversion Total Cost units units Cost accounted for as follow: Transferred to Packaging Dept Work in process, January 31 Materials Conversion Total cost accounted for

Solution

Total cost Materials(units) Conversion(units) Cost accounted for as follows: Transferred to packaging dept. 649800 38000 38000 Work in Process, Jan 31: Materials 47200 4000 Conversion 18020 3400 65220 Total Cost accounted for 715020