Homework SourseUse the average cost method with the following data Prepare
Use the average cost method with the following data:
Prepare a cost of production report for the Cutting Department of Dalton Carpet Company for January using the average cost method. If required, round your cost per equivalent unit answer to two decimal places.
| Work in process, January 1, 6,700 units, 10% completed | $51,590 |
| Materials added during January from Weaving Department, 126,600 units | 946,968 |
| Direct labor for January | 243,998 |
| Factory overhead for January | 192,724 |
| Goods finished during January (includes goods in process, January 1), 123,900 units | — |
| Work in process, January 31, 9,400 units, 70% completed | — |
Solution
Prepare a cost of production report for the Cutting Department of Dalton Carpet Company for January using the average cost method
| Unit charged to production | ||
| Inventory in process, January 1 | 6700 | |
| Received from Weaving Department | 126600 | |
| Total units accounted for by the Cutting Department | 133300 | |
| units to be assigned cost | ||
| Whole unit | Equivalent Units of Production | |
| Transferred to finished goods in January | 123900 | 123900 |
| Inventory in process, January 31 | 9400 | 6580 |
| Total units to be assigned cost | 133300 | 130480 |
| Cost information | ||
| Cost per equivalent unit | ||
| Costs | ||
| Total costs for january in cutting department | 1435280 | |
| Total equivalent unit | 130480 | |
| Cost per equivalent unit | 11 | |
| Cost assigned to production | ||
| Inventory in process, January 1 | 51590 | |
| Costs incurred in January | 1383690 | |
| Total costs accounted for by the Cutting Department | 1435280 | |
| Costs allocated to completed and partially completed units: | ||
| Transferred to finished goods in January | 1362900 | |
| Inventory in process, January 31 | 72380 | |
| Total costs assigned by the Cutting Department | 1435280 | |
