Mercier Manufacturing produces a plastic part in three sequential departments: Extruding, Fabricating, and Packaging. Mercier uses the weighted-average process costing method to account for costs of production in all three departments. The following information was obtained for the Fabricating Department for the month of September. Work in process on September 1 had 15,000 units made up of the following: Prior department costs transferred in from the Extruding Department Costs added by the Fabricating Department Direct materials Direct labor Manufacturing overhead Work in process, September 1 Amount Degree of Completion $ 78,750 100% $ 39,000 90% 9,900 70% 9,120 35% $ 58,020 $ 136,770 During September, 75,000 units were transferred in from the Extruding Department at a cost of $416,250. The Fabricating Department added the following costs: Direct materials Direct labor Manufacturing overhead Total costs added $ 214,200 64,800 34,080 $ 313,060 Fabricating finished 60,000 units and transferred them to the Packaging Department. At September 30, 30,000 units were still in work-in-process inventory. The degree of completion of work-in-process Inventory at September 30 was as follows: Direct materials 100% Direct labor 60 Manufacturing overhead 50 Required: a. Prepare a production cost report for September using the weighted-average method. Note: Round "Cost per equivalent unit" to 2 decimal places. Round your final answers to nearest whole number. MERCIER MANUFACTURING Fabricating Department Production Cost Report-Weighted Average Flow of Production Units Units to be accounted for. Beginning WIP inventory Units started this period Total units to be accounted for Units accounted for Units completed and transferred out: From beginning inventory Started and completed currently Total transferred out Units in ending WIP inventory Total units accounted for Costs to be accounted for: Costs in beginning WIP inventory Current period costs Total costs to be accounted for Cost per equivalent unit: Prior department costs Materials Labor Manufacturing overhead Costs accounted for. Costs assigned to units transferred out Prior department costs Materials Labor Manufacturing overhead Total costs of units transferred out Costs assigned to ending WIP inventory: Prior department costs Materials Labor Manufacturing overhead Total ending WIP inventory Total costs accounted for Prior Physical Units Total Costs Department Materials Costs Labor Manufacturing Overhead 0 0 0 0 0 $ 0 $ 0 S 0 S 0 $ $ 0 0 $ 0 $ 0 $ 0 $ 0 $

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Mercier Manufacturing produces a plastic part in three sequential departments: Extruding, Fabricating, and Packaging.
Mercier uses the weighted-average process costing method to account for costs of production in all three departments.
The following information was obtained for the Fabricating Department for the month of September.
Work in process on September 1 had 15,000 units made up of the following:
Prior department costs transferred in from the
Extruding Department
Costs added by the Fabricating Department
Direct materials
Direct labor
Manufacturing overhead
Work in process, September 1
Amount
Degree of
Completion
$ 78,750
100%
$ 39,000
90%
9,900
70%
9,120
35%
$ 58,020
$ 136,770
During September, 75,000 units were transferred in from the Extruding Department at a cost of $416,250. The
Fabricating Department added the following costs:
Direct materials
Direct labor
Manufacturing overhead
Total costs added
$ 214,200
64,800
34,080
$ 313,060
Fabricating finished 60,000 units and transferred them to the Packaging Department.
At September 30, 30,000 units were still in work-in-process inventory. The degree of completion of work-in-process
Inventory at September 30 was as follows:
Direct materials
100%
Direct labor
60
Manufacturing overhead
50
Required:
a. Prepare a production cost report for September using the weighted-average method.
Note: Round "Cost per equivalent unit" to 2 decimal places. Round your final answers to nearest whole number.
MERCIER MANUFACTURING
Fabricating Department
Production Cost Report-Weighted Average
Flow of Production Units
Units to be accounted for.
Beginning WIP inventory
Units started this period
Total units to be accounted for
Units accounted for
Units completed and transferred out:
From beginning inventory
Started and completed currently
Total transferred out
Units in ending WIP inventory
Total units accounted for
Costs to be accounted for:
Costs in beginning WIP inventory
Current period costs
Total costs to be accounted for
Cost per equivalent unit:
Prior department costs
Materials
Labor
Manufacturing overhead
Costs accounted for.
Costs assigned to units transferred out
Prior department costs
Materials
Labor
Manufacturing overhead
Total costs of units transferred out
Costs assigned to ending WIP inventory:
Prior department costs
Materials
Labor
Manufacturing overhead
Total ending WIP inventory
Total costs accounted for
Prior
Physical Units
Total Costs
Department Materials
Costs
Labor
Manufacturing
Overhead
0
0
0
0
0
$
0 $
0 S
0 S
0 $
$
0
0
$
0 $
0 $
0 $
0 $
Transcribed Image Text:Mercier Manufacturing produces a plastic part in three sequential departments: Extruding, Fabricating, and Packaging. Mercier uses the weighted-average process costing method to account for costs of production in all three departments. The following information was obtained for the Fabricating Department for the month of September. Work in process on September 1 had 15,000 units made up of the following: Prior department costs transferred in from the Extruding Department Costs added by the Fabricating Department Direct materials Direct labor Manufacturing overhead Work in process, September 1 Amount Degree of Completion $ 78,750 100% $ 39,000 90% 9,900 70% 9,120 35% $ 58,020 $ 136,770 During September, 75,000 units were transferred in from the Extruding Department at a cost of $416,250. The Fabricating Department added the following costs: Direct materials Direct labor Manufacturing overhead Total costs added $ 214,200 64,800 34,080 $ 313,060 Fabricating finished 60,000 units and transferred them to the Packaging Department. At September 30, 30,000 units were still in work-in-process inventory. The degree of completion of work-in-process Inventory at September 30 was as follows: Direct materials 100% Direct labor 60 Manufacturing overhead 50 Required: a. Prepare a production cost report for September using the weighted-average method. Note: Round "Cost per equivalent unit" to 2 decimal places. Round your final answers to nearest whole number. MERCIER MANUFACTURING Fabricating Department Production Cost Report-Weighted Average Flow of Production Units Units to be accounted for. Beginning WIP inventory Units started this period Total units to be accounted for Units accounted for Units completed and transferred out: From beginning inventory Started and completed currently Total transferred out Units in ending WIP inventory Total units accounted for Costs to be accounted for: Costs in beginning WIP inventory Current period costs Total costs to be accounted for Cost per equivalent unit: Prior department costs Materials Labor Manufacturing overhead Costs accounted for. Costs assigned to units transferred out Prior department costs Materials Labor Manufacturing overhead Total costs of units transferred out Costs assigned to ending WIP inventory: Prior department costs Materials Labor Manufacturing overhead Total ending WIP inventory Total costs accounted for Prior Physical Units Total Costs Department Materials Costs Labor Manufacturing Overhead 0 0 0 0 0 $ 0 $ 0 S 0 S 0 $ $ 0 0 $ 0 $ 0 $ 0 $ 0 $
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