Problem:
Draco Paints makes an environmentally sound paint. The following data are available for the month of April:
Percentage
Units Complete Costs
Beginning WIP inventory, April ............................ 11,000
Direct materials................................................ 75% $ 3,200
Conversion costs ............................................ 70 1,450
Units started in April ............................................ 6,000
Costs incurred in April:
Direct materials................................................ 16,000
Conversion costs ............................................ 15,800
Ending WIP inventory .......................................... 3,000
Direct materials................................................ 80
Conversion costs ............................................ 60
Spoilage .............................................................. 200
Direct materials................................................ 100
Conversion costs ............................................ 100
Required to do:
Q1. Prepare a production cost report using weighted-average costing.
Q2. Show the flow of costs through the WIP Inventory T-account.