Problem no. 2 Fresh Seasons is a contract manufacturer for Delectable Dressing Company. Fresh Seasons uses a weighted average process costing system to account for its salad dressing production. All ingredients are added at the start of the process. Delectable provides reusable vats to Fresh Seasons for the completed product to be shipped to Delectable for bottling, so Fresh Seasons incurs no packaging costs. April 2010 production and cost information for Fresh Seasons is as follows: Gallons of dressing in beginning WIP Inventory Gallons completed during April Gallons of dressing in ending WIP Inventory Costs of beginning WIP Inventory Direct material Direct labor Overhead Costs incurred in April Direct material Direct labor for labor and overhead: $1,136,025 451,450 Overhead 723,195 April beginning and ending WIP inventories had the following percentages of completion Direct labor Overhead April 1 55% 70% 36,000 242,000 23,500 April 30 15% 10% $183,510 98,526 78,273
Problem no. 2 Fresh Seasons is a contract manufacturer for Delectable Dressing Company. Fresh Seasons uses a weighted average process costing system to account for its salad dressing production. All ingredients are added at the start of the process. Delectable provides reusable vats to Fresh Seasons for the completed product to be shipped to Delectable for bottling, so Fresh Seasons incurs no packaging costs. April 2010 production and cost information for Fresh Seasons is as follows: Gallons of dressing in beginning WIP Inventory Gallons completed during April Gallons of dressing in ending WIP Inventory Costs of beginning WIP Inventory Direct material Direct labor Overhead Costs incurred in April Direct material Direct labor for labor and overhead: $1,136,025 451,450 Overhead 723,195 April beginning and ending WIP inventories had the following percentages of completion Direct labor Overhead April 1 55% 70% 36,000 242,000 23,500 April 30 15% 10% $183,510 98,526 78,273
Problem no. 2 Fresh Seasons is a contract manufacturer for Delectable Dressing Company. Fresh Seasons uses a weighted average process costing system to account for its salad dressing production. All ingredients are added at the start of the process. Delectable provides reusable vats to Fresh Seasons for the completed product to be shipped to Delectable for bottling, so Fresh Seasons incurs no packaging costs. April 2010 production and cost information for Fresh Seasons is as follows: Gallons of dressing in beginning WIP Inventory Gallons completed during April Gallons of dressing in ending WIP Inventory Costs of beginning WIP Inventory Direct material Direct labor Overhead Costs incurred in April Direct material Direct labor for labor and overhead: $1,136,025 451,450 Overhead 723,195 April beginning and ending WIP inventories had the following percentages of completion Direct labor Overhead April 1 55% 70% 36,000 242,000 23,500 April 30 15% 10% $183,510 98,526 78,273
Determine the following using the weighted average (WA) method of process costing
1. Equivalent units of production for materials and conversion cost
2. unit costs, and;
3. Inventory values
Transcribed Image Text:Problem no. 2
Fresh Seasons is a contract manufacturer for Delectable Dressing Company. Fresh Seasons uses
a weighted average process costing system to account for its salad dressing production. All
ingredients are added at the start of the process. Delectable provides reusable vats to Fresh
Seasons for the completed product to be shipped to Delectable for bottling, so Fresh Seasons
incurs no packaging costs. April 2010 production and cost information for Fresh Seasons is as
follows:
Gallons of dressing in beginning WIP Inventory
Gallons completed during April
Gallons of dressing in ending WIP Inventory
Costs of beginning WIP Inventory
Direct material
Direct labor
Overhead
Costs incurred in April
Direct material
Direct labor
Overhead
for labor and overhead:
$1,136,025
451,450
723,195
April beginning and ending WIP inventories had the following percentages of completion
Direct labor
Overhead
April 1
55%
70%
36,000
242,000
23,500
April 30
15%
10%
$183,510
98,526
78,273
Definition Definition Operation costing method employed to determine the value of a product at each process or stage of the production process, applicable where goods produced from a series of continuous operations or procedure. Process costing is employed by businesses that manufacture goods and where production is in repetitive inflow.
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
