Question:
WEIGHTED AVERAGE METHOD, SINGLE DEPARTMENT ANALYSIS, UNIFORM COSTS Stewart Company produces a product that passes through three processes: fabrication, assembly, and finishing. All manufacturing costs are added uniformly for both processes.The following information was obtained for the assembly department for May 2007:
a. Work in process, May 1, had 10,000 units (40 percent completed) and the following costs:
|
Direct materials
|
$12,000
|
|
Direct labor
|
18,000
|
|
Overhead
|
6,000
|
b. During the month of May, 30,000 units were completed and transferred to the finishing department, and the following costs were added to production:
|
Direct materials
|
$36,000
|
|
Direct labor
|
24,000
|
|
Overhead
|
18,000
|
c. On May 30, there were 7,500 partially completed units in process. These units were 80 percent complete.
Required:
Prepare a cost of production report for the assembly department for May using the weighted average method of costing. The report should disclose the physical flow of units, equivalent units, and unit costs and should track the disposition of manufacturing costs.