Question

Hayword, Inc. uses weighted-average costing and has two departments and has provided data related to its mixing department for the month of July. The Controller has asked you prepare a cost reconciliation report and provide the related computations. Use the information included in the Excel Simulation and the Excel functions described below to complete the task.
1 Hayword, Inc. uses weighted-average costing and has two departments - mixing and packaging 2 The following information relates to work in the mixing department for the month of July: 4 Work in process, July 1: 5 Units in process 6 Percent completed with respect to materials 7 Percent completed with respect to conversion 8 Cost in the beginning inventory: 9 Materials cost 10 Conversion cost 11 Units started into production during the period 12 Costs added to production during the period 13 Materials cost 14 Conversion cost 15 Work in process, July 31: 16 Units in process 17 Percent completed with respect to materials 18 Percent completed with respect to conversion 19 20 Use the data to answer the following 21 22 1. Compute equivalent units. 23 24 25 26 Units transferred to the next department 27 Ending work in process: 28 Materials 29 Conversion 30 Equivalent units of production 31 300 60% 40% $10,500 $6,750 6,200 $330,912 $406,408 450 40% 30% Mixing Department Equivalent Units of Production Materials Conversion

Answer 1

Answer:

Hayword, Inc.

Cost Reconciliation Report

Costs to be accounted for:

Cost in the beginning inventory        $17,250

Units started during the period        737,320

Total cost of production                 $754,570

Costs accounted for:

Units transferred out                    $735,680

Ending inventory                              $18,882

Total assigned costs                  $$754,562

Difference due to approximations = $8

Explanation:

a) Data and Calculations:

Work in process, July 1:

Units in process = 300

Percent completed with respect to materials = 60%

Percent completed with respect to conversion = 40%

Cost in the beginning inventory:

Materials cost = $10,500

Conversion cost = $6,750

Units started during the period = 6,200

Costs added during the period:

Material costs = $330,912

Conversion costs = $406,408

Work in process, July 31 = 450 units

Percent completed with respect to materials =  40%

Percent completed with respect to conversion 30%

                                                       Units

Beginning inventory                       300

Units started during the period  6,200          

Total units under production      6,500

Ending inventory                            450

Units transferred out                  6,050

Cost of production:

                                                      Materials cost   Conversion cost   Total

Cost in the beginning inventory       $10,500               $6,750       $17,250

Units started during the period         330,912             406,408      737,320

Total cost of production                   $341,412             $413,158   $754,570

Equivalent Units:

                                                       Units   Materials         Conversion

Units transferred out                  6,050    6,050 (100%)   6,050 (100%)

Ending inventory                            450        180 (40%)         135 (30%)

Total equivalent units of production       6,230                6,185

Cost per equivalent unit:

                                                     Materials         Conversion

Total cost of production              $341,412             $413,158

Total equivalent units                      6,230                   6,185

Cost per equivalent unit               $54.80                $66.80

Cost assigned to:

                                                     Materials         Conversion         Total

Units transferred out                  $331,540           $404,140       $735,680

                                        (6,050 * $54.80)  (6,050 * $66.80)

Ending inventory                              9,864                  9,018          $18,882

                                           (180 * $54.80)     (135 * $66.80)

Total assigned costs                  $341,404            $413,158       $754,562