Weighted Average Process Costing
Assume that JIF, which is part of The J.M. Smucker Company, processes its only product, 12-ounce jars of peanut butter, in a single process and uses weighted average process costing to account for inventory costs. All materials are added at the beginning of production. Assume the following inventory, production, and cost data are provided for September:
Production data
Beginning inventory (25% converted) 440,000 units
Units started 1,320,000 units
Ending inventory (75% converted) 495,000 units
Manufacturing costs
Beginning inventory in process
Materials cost $400,400
Conversion cost 98,120
Raw materials cost added at beginning of process 1,271,600
Direct labor cost incurred 884,180
Manufacturing overhead applied 981,200
Required
a. Prepare a cost of production report for September.
Note: Do not use a negative sign with any of your answers.
Summary of units in process:
Beginning
Units started 1,320,000
In process
Completed 825,000
Ending
Equivalent units in process
Units completed
Equivalent units in ending inventory
Equivalent units in process
Total cost to be accounted for and cost per equivalent unit in process:
Beginning work-in-process
Current cost
Total cost in process
Cost per equivalent unit in process
Accounting for total costs
Transferred out
Ending work-in-process:
Materials
Conversion
Total cost accounted for
