Question 1 - Jordana Woolens is a manufacturer of wool cloth. The information for March is as follows:
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Beginning work in process
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10,000 units
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Units started
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20,000 units
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Units completed
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25,000 units
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| |
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Beginning work-in-process direct materials
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$ 6,000
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Beginning work-in-process conversion
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$ 2,600
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Direct materials added during month
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$30,000
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Direct manufacturing labor during month
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$12,000
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Factory overhead
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$ 5,000
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Beginning work in process was half converted as to labor and overhead. Direct materials are added at the beginning of the process. All conversion costs are incurred evenly throughout the process. Ending work in process was 60% complete.
Required: Prepare a production cost worksheet using the weighted-average method. Include any necessary supporting schedules.
Question 2 - 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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| |
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Cost of beginning work in process
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$2,500
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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 FIFO method.