https://www.bartleby.com/questions-and-answers/surerock-inc.-manufactures-curling-rocks-which-are-used-worldwide-in-curling-rinks-and-for-bonspiels/394d172b-002e-455c-b8c8-5199fba44555SureRock Inc. manufactures curling rocks which are used worldwide in curling rinks and for bonspiels and tournaments. SureRock has a single production department, the Assembly department, which is highly automated to ensure that the curling rocks are of consistent quality. Production begins by the introduction of all the raw materials (granite, electronic sensors, plastics, and adhesives) that are added at the beginning of the process and ends when the completed rock is polished and loaded into individual crates. The rocks are then transferred to the shipping department. Direct labour and manufacturing overhead are added continuously throughout the process. Prior to October, when a change in the manufacturing process was implements, production increased significantly. One of the polishing machines was incorrectly calibrated, and it was found that some of the curling rocks incurred small cracks in the granite as a result. Normally, SureRock allows for 2% of good rocks produced. The data related to the actual production for the month of October is:CostsWork-in-process inventory, October 1Direct materials $ 38,400Conversion costs 33,600Costs added in month of MayDirect materials 371,200Direct labour 97,440Manufacturing overhead 227,360UnitsWork-in-process inventory, October 1 (30% completed) 300Units started in October 2,900Units completed and transferred to shipping 2,500Work-in-process inventory, October 31 (80% completed) 550Required:Prepare a production cost report for October using the weighted-average meth
https://www.bartleby.com/questions-and-answers/surerock-inc.-manufactures-curling-rocks-which-are-used-worldwide-in-curling-rinks-and-for-bonspiels/394d172b-002e-455c-b8c8-5199fba44555
SureRock Inc. manufactures curling rocks which are used worldwide in curling rinks and for
bonspiels and tournaments. SureRock has a single production department, the Assembly
department, which is highly automated to ensure that the curling rocks are of consistent quality.
Production begins by the introduction of all the raw materials (granite, electronic sensors,
plastics, and adhesives) that are added at the beginning of the process and ends when the
completed rock is polished and loaded into individual crates. The rocks are then transferred to
the shipping department. Direct labour and manufacturing
throughout the process.
Prior to October, when a change in the manufacturing process was implements, production
increased significantly. One of the polishing machines was incorrectly calibrated, and it was
found that some of the curling rocks incurred small cracks in the granite as a result. Normally,
SureRock allows for 2% of good rocks produced.
The data related to the actual production for the month of October is:
Costs
Work-in-process inventory, October 1
Direct materials $ 38,400
Conversion costs 33,600
Costs added in month of May
Direct materials 371,200
Direct labour 97,440
Manufacturing overhead 227,360
Units
Work-in-process inventory, October 1 (30% completed) 300
Units started in October 2,900
Units completed and transferred to shipping 2,500
Work-in-process inventory, October 31 (80% completed) 550
Required:
Prepare a production cost report for October using the weighted-average meth
Production report
The production cost report provides an overview of the cost and production activity within a department over the course of a reporting period. It merely serves as a formal overview of the four procedures taken to allocate costs to units transferred out and those in ending work-in-process (WIP) inventory.
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