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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.

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.

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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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 16,900 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 Direct materials Direct labor Manufacturing overhead Total costs added During September, 75,000 units were transferred in from the Extruding Department at a cost of $546,250. The Fabricating Department added the following costs: Direct materials Direct labor Manufacturing overhead. Flow of Production Units Units to be accounted for Fabricating finished 61,900 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: 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 Units in anding WIP inventory Total units accounted for Costs to be accounted for Required: a. Prepare a production cost report for September using the FIFO. Note: Round "Cost per equivalent unit" to 2 decimal places. Round your final answers to nearest whole number. Costs in beginning WIP inventory Current period costs Required: a. Prepare a production cost report for September using the FIFO. Note: Round "Cost per equivalent unit" to 2 decimal places. Round your final answers to nearest whole number. 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 $ 214,200 64,800 35,380 $ 314,380 100% 68 50 Materials Labor Amount $ 85,250 $ 45,500 11,200 10,420 $ 67,120 $ 152,370 Costs from beginning WIP inventory Current costs added to complete beginning WIP inventory: Prior department costs Manufacturing overhead Total costs from beginning inventory Current costs of units started and completed: Prior department costs Materials Labor Manufacturing overhead Total costs of units started and completed 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 MERCIER MANUFACTURING Fabricating Department Production Cost Report-FIFO Total Costs Physical Units $ $ Degree of Completion $ $ $ $ 0 100% 0 $ 0 0 90% 70% 35% Prior Department Materials Costs 0 05 $ 0 $ 0 $ 0 Labor 0 $ 0 $ Manufacturing Overhead 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 16,900 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 Direct materials Direct labor Manufacturing overhead Total costs added During September, 75,000 units were transferred in from the Extruding Department at a cost of $546,250. The Fabricating Department added the following costs: Direct materials Direct labor Manufacturing overhead. Flow of Production Units Units to be accounted for Fabricating finished 61,900 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: 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 Units in anding WIP inventory Total units accounted for Costs to be accounted for Required: a. Prepare a production cost report for September using the FIFO. Note: Round "Cost per equivalent unit" to 2 decimal places. Round your final answers to nearest whole number. Costs in beginning WIP inventory Current period costs Required: a. Prepare a production cost report for September using the FIFO. Note: Round "Cost per equivalent unit" to 2 decimal places. Round your final answers to nearest whole number. 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 $ 214,200 64,800 35,380 $ 314,380 100% 68 50 Materials Labor Amount $ 85,250 $ 45,500 11,200 10,420 $ 67,120 $ 152,370 Costs from beginning WIP inventory Current costs added to complete beginning WIP inventory: Prior department costs Manufacturing overhead Total costs from beginning inventory Current costs of units started and completed: Prior department costs Materials Labor Manufacturing overhead Total costs of units started and completed 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 MERCIER MANUFACTURING Fabricating Department Production Cost Report-FIFO Total Costs Physical Units $ $ Degree of Completion $ $ $ $ 0 100% 0 $ 0 0 90% 70% 35% Prior Department Materials Costs 0 05 $ 0 $ 0 $ 0 Labor 0 $ 0 $ Manufacturing Overhead 0 $ 0 $ 0
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