Prepare the product cost report for Department 1 for May. Round average cost per equivalent unit to four decimal places. Use rounded answers for subsequent calculations. Round other answers to the nearest whole number.

FINANCIAL ACCOUNTING
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Chapter1: Financial Statements And Business Decisions
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Product Cost Report—Weighted Average Method

Reston Manufacturing Corporation produces a cosmetic product in three consecutive processes. The costs of Department 1 for May 2016 were as follows:

 

Cost of beginning inventory
Direct material   $29,400
Conversion costs   49,770
Costs added in Department 1
Direct material $886,200  
Direct labor 895,650  
Manufacturing overhead 609,390 2,391,240

Department 1 handled the following units during May:

 

Units in process, May 1 2,000
Units started in Department 1 40,000
Units transferred to Department 2 39,000
Units in process, May 31 3,000


On average, the May 1 units were 30% complete. The May 31 units were 60% complete. Materials are added at the beginning of the process, and conversion costs occur evenly throughout the process in Department 1. Reston uses the weighted average method for process costing.

Required

Prepare the product cost report for Department 1 for May.

Round average cost per equivalent unit to four decimal places. Use rounded answers for subsequent calculations. Round other answers to the nearest whole number.

 

Reston Manufacturing Corporation Department 1
Flow of Units and Equivalent Units Calculations, May 2016
  Equivalent Units
  % Work
Done
Direct
Materials
% Work
Done
Conversion
Costs
 
Complete/Transferred Answer Answer Answer Answer Answer  
Ending Inventory Answer Answer Answer Answer Answer  
Total Answer   Answer   Answer  
 
Product Cost Report
  Direct
Materials
  Conversion
Costs
 
Beginning Inventory Answer   Answer   Answer  
Current Answer   Answer   Answer  
Total Costs to Account For Answer   Answer   Answer  
÷ Total Equivalent Units     Answer   Answer  
Average cost / Equivalent unit (round four decimal places)     Answer   Answer  
Complete / Transferred:
Direct Materials Answer  
Conversion costs Answer  
Cost of Goods Manufactured Answer  
Ending Inventory:
Direct Materials Answer
Conversion costs Answer  
Cost of Ending Inventory Answer  
Total Costs Allocated Answer
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