Managerial accounting: Weighted average method
josh
June 23, 2015
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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:
Materials cost |
$900 | |
| Conversion cost | $5,900 | |
| Cost added during May:
Materials cost |
$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:
- Compute the equivalent units of production.
- Determine the cost of ending work in process inventory and of the units transferred out to the next department.
- 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.
