| Option #1: Production Cost Accounting –Weighted Average Method |
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| Maple, Inc. manufactures syrup that goes through three processing stages prior to completion. Information on work in the first department, blending, is given below for August: |
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| Production Data: | ||
| Pounds in process, August 1; materials 100% complete; conversion 70% complete |
3,000 | |
| Pounds started into production during August |
85,000 | |
| Pounds completed and transferred out |
? | |
| Pounds in process, August 31; materials 80% complete; conversion 30% complete |
6,000 | |
| Cost Data: | ||
| Work in process inventory, August 1: |
$900 | |
| Materials cost | ||
| Conversion cost |
$5,900 | |
| Cost added during May: |
$151,000 | |
| Materials cost | ||
| Conversion cost |
$161,700 | |
| The company uses the weighted-average method. |
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| Instructions: | ||
| Submit an Excel document, with each tab labeled by item number, which demonstrates the following: |
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| 1. Compute the equivalent units of production. |
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| 2. Compute the costs per equivalent unit for the month. |
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| 3. Determine the cost of ending work in process inventory and of the units transferred out to the next department. |
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| 4. Prepare a cost reconciliation schedule for the month. |
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| Provide your answers in a clearly organized Excel spreadsheet. Check spelling and formatting for readability. Document your sources. Where applicable, written comments must be in accordance with theCSU-Global Guide to Writing and APA Requirements Be sure to review the Module 3 Critical Thinking grading rubric, which may be accessed through the Course Information page. |
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