Required: 1. Prepare, in good form, a weighted average cost of production report for the Curing Department for May 2022. 2. Prepare, in good form, a First In First Out cost of production report for the Curing Department for May 2022.
Required: 1. Prepare, in good form, a weighted average cost of production report for the Curing Department for May 2022. 2. Prepare, in good form, a First In First Out cost of production report for the Curing Department for May 2022.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Cost Accounting
Give the answer to the problem.
What is the answer in numbers 1 and 2? Show solution/process.
Transcribed Image Text:Problem no. 1
Octavia Corp.'s products are manufactured in three separate departments: Molding, Curing, and Finishing.
Materials are introduced in Molding; additional material is added in Curing. The following information is
available for the Curing Department for May 2022:
Beginning WIP Inventory (degree of completion: transferred in,
100%; direct material, 80%; direct labor, 40%; overhead, 30%)
Transferred in from Molding
Ending WIP Inventory (degree of completion: transferred in, 100%;
direct material, 70%; direct labor, 50%; overhead, 40%)
Transferred to Finishing
Cost Component
Transferred in
Direct material
Direct labor
Overhead
BI Cost
$200,160
42,504
31,360
4,848
8,000 units
40,000 units
517,880
267,840
4,000 units
? units
Current Period Cost
$1,620,000
333,300
Required:
1. Prepare, in good form, a weighted average cost of production report for the Curing Department for May
2022.
2.
Prepare, in good form, a First In First Out cost of production report for the Curing Department for May
2022.
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