Question - Surf Products Company uses an automated process to clean and polish its souvenir items. For March, the company had the following activities:
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Beginning work in process inventory
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3,000 items, 1/3 complete
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Units placed in production
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12,000 units
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Units completed
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9,000 units
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Ending work in process inventory
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6,000 items, 1/2 complete
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Cost of beginning work in process
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Direct Materials: $2,025
Conversion Costs: $475
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Direct material costs, current
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$9,000
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Conversion costs, current
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$7,700
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Direct materials are placed into production at the beginning of the process and conversion costs are incurred evenly throughout the process.
Required: Prepare a production cost worksheet using the WEIGHTED AVERAGE method.