Managerial accounting: Weighted average method
Production Cost Accounting – Weighted Average Method
Maple, Inc. manufactures syrup that goes through three processing stages prior to completion. Information on work in the first department, blending, is given below for August:
Production Data: | ||
| Pounds in process, August 1; materials 100% complete; conversion 70% complete | 3,000 |
| Pounds started into production during August | 85,000 |
| Pounds completed and transferred out | ? |
| Pounds in process, August 31; materials 80% complete; conversion 30% complete | 6,000 |
Cost Data: | ||
| Work in process inventory, August 1: | $900 |
| Conversion cost | $5,900 |
| Cost added during May: | $151,000 |
| Conversion cost | $161,700 |
The company uses the weighted-average method.
Instructions:
Use an excel document with each tab labeled by item number, which demonstrates the following:
1. Compute the equivalent units of production.
2. Determine the cost of ending work in process inventory and of the units transferred out to the next department.
3. Prepare a cost reconciliation schedule for the month.
Provide your answers in a clearly organized Excel spreadsheet. Provide a brief paragraph explaining each calculation. Check spelling and formatting for readability. Document your sources, APA citations.
11 years ago
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managerial_accounting_weighted_average_method.xlsx
Maple, Inc. manufactures syrup that goes through three processing stages prior
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