Dont Cry Over Spilled Milk Inc a manufacturer of mops uses t

Don’t Cry Over Spilled Milk, Inc., a manufacturer of mops, uses the weighted average method in its processing costing system. Don’t Cry uses a traditional costing system in the allocation of its manufacturing overhead (MOH) to production; MOH costs are allocated to production on the basis of machine hours logged during the period. Total estimated MOH for the period was $300,000 and total estimated machine hours were 100,000. The following data concern the operations of the company’s first processing department, Assembly, for June 2012.

Beginning Work in Process

During June, 79,325 actual machine hours were logged during production.

1. The cost to assemble one mop in June was?

2. The cost of goods completed and transferred out of the Assembly department during June equals?

3. The conversion costs included in Work in Process-Assembly at the beginning of July would equal?

??

Beginning Work in Process	800? mops, ?60% complete with respect to direct? materials, 10% complete with respect to conversion
Costs in Beginning Work in Process	$3,712 (of this? amount, $1,296 is for direct ?materials)
Units Started in June	16,000 mops
Direct Product Costs Added During June	direct materials? $47,076; direct labor ?$216,213
Ending Work in Process	300? mops, 60% completed with respect to direct? materials, 70% complete with respect to conversion

Solution

Weighted average cost Beggining units 800 Transferred out 16,500 Started intro production 16000 Ending units 300 Units accounted for 16800 16800 Equivalent units Material Conversion cost Units transferred                      A 16500 16500 Ending Units 300 300 Completion 60% 70% B 180 210 Total units 16680 16710 Cost per equivalent units Particulars Material Conversion cost total As at beginning 1296 2416 3712 Added during the month 47076 454188 501264 Cost to be accounted for 48372 456604 504976 Total eqivalent units 16680 16710 Cost per equivalent unit 2.90 27.33 30.23 Cost per equivalent unit = Cost to be accounted for / Total equivalent units Cost of ending work in progress Conversion cost Particulars Material Total Ending units 300 300 Cost per equivalent units 2.90 27.33 Completion 60% 70% Total cost 522 5738 6260 Cost of goods transferred Conversion cost Particulars Material Total Number of units 16500 16500 Cost per equivalent units 2.90 27.33 30.23 Total amount 47850 450866 498716