Product Cost Report-Weighted Average Method
Somez Manufacturing Corporation produces a dandruff shampoo in three consecutive processes. The costs of Department 1 for June were as follows:
Cost of beginning inventory
Direct material
$8,250
Conversion costs
19,110
Costs added in Department 1
Direct material
$335,505
Direct labor
537,450
Manufacturing overhead 233,100 1,106,055
Department 1 handled the following units during June:
Units in process, June 1
Units started in Department 1
2,000
45,000
Units transferred to Department 2 46,000
Units in process, June 30
1,000
On average, the June 1 units were 40% complete; the June 30 units were 70% complete. Direct materials are added at the beginning of the process, and conversion costs occur evenly throughout the process in Department 1. Gomez uses the weighted average
method for process costing.
Required
Prepare the product cost report for Department 1 for June.
Round average cost per equivalent unit to four decimal places. Use rounded answers for subsequent calculations. Round other answers to the nearest whole number.
Gomez Manufacturing Corporation Department 1
Flow of Units and Equivalent Units Calculations, June
Equivalent Units
% Work
Done
Direct
Materials
Work Conversion
Done
Costs
Complete/Transferred
Ending Inventory
Total
Product Cost Report
Direct Conversion
Materials Costs
