Accounting 2

Honeybutter, Inc., manufactures a product that goes through two departments prior to completion— the Mixing Department followed by the Packaging Department. The following information is available about work in the first department, the Mixing Department, during June.

Percent Completed

Units

Materials

Conversion

  Work in process, beginning

70,000  

70%   

40%   

  Started into production

460,000  

  Completed and transferred out

450,000  

  Work in process, ending

80,000  

75%   

25%   

Materials

Conversion

  Work in process, beginning

$

36,550  

$

13,500  

  Cost added during June

$

391,850  

$

287,300  

Required:

Assume that the company uses the weighted-average method.

1.

Determine the equivalent units for June for the Mixing Department.

Materials

Conversion

  Equivalent units of production

2.

Compute the costs per equivalent unit for June for the Mixing Department. (Round your answers to 2 decimal places.)

Materials

Conversion

  Cost per equivalent unit

$

$

3.

Determine the total cost of ending work in process inventory and the total cost of units transferred to the Packaging Department.(Round your intermediate calculation to 2 decimal places and final answers to the nearest whole dollar amount.)

Total

  Cost of ending work in process inventory

$        

  Cost of units completed and transferred out

$        

4.

Prepare a cost reconciliation report for the Mixing Department for June. (Round your intermediate calculation to 2 decimal places and final answers to the nearest whole dollar amount.)

Cost Reconciliation

  Costs to be accounted for:

$  

  Total cost to be accounted for

$  

  Costs accounted for as follows:

$  

  Total cost accounted for

$  

Worksheet

Learning Objective: 04-02 Compute the equivalent units of production using the weighted-average method.

Learning Objective: 04-04 Assign costs to units using the weighted-average method.

Difficulty: Hard

Learning Objective: 04-03 Compute the cost per equivalent unit using the weighted-average method.

Learning Objective: 04-05 Prepare a cost reconciliation report.