Production Cost Accounting - Weighted Average Method
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:
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Pounds in process, August 1; materials 100% complete; conversion 70% complete
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3,000
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Pounds started into production during August
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85,000
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Pounds completed and transferred out
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?
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Pounds in process, August 31; materials 80% complete; conversion 30% complete
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6,000
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Cost Data:
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Work in process inventory, August 1:
Materials cost
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$900
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Conversion cost
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$5,900
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Cost added during May:
Materials cost
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$151,000
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Conversion cost
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$161,700
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The company uses the weighted-average method.
Instructions:
Use an excel document with each tab labeled by item number, which demonstrates the following:
1. Compute the equivalent units of production.
2. Determine the cost of ending work in process inventory and of the units transferred out to the next department.
3. Prepare a cost reconciliation schedule for the month.
Provide your answers in a clearly organized Excel spreadsheet. Provide a brief paragraph explaining each calculation. Check spelling and formatting for readability. Document your sources, APA citations.