Question

Gomez Manufacturing Corporation produces a dandruff shampoo in three consecutive processes. The costs of Department 1 for June 2016 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	2,000
Units started in Department 1	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.

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.

Product Cost Report
			Direct Materials		Conversion Costs
Beginning Inventory	$Answer		$Answer		$Answer
Current	Answer		Answer		Answer
Total Costs to Account For	$Answer		$Answer		$Answer
÷ Total Equivalent Units			Answer		Answer
Average cost / Equivalent unit (round four decimal places)			$Answer		$Answer
Complete / Transferred:
Direct Materials	$Answer
Conversion costs	Answer
Cost of Goods Manufactured	$Answer
Ending Inventory:
Direct Materials	$Answer
Conversion costs	Answer
Cost of Ending Inventory	$Answer
Total Costs Allocated	$Answer

Answer 1

Equivalent unit :

		Equivalent unit
	Physical Unit	% work done	Direct material	% Work done	Conversion Cost
Unit completed and transferred out	46000	100%	46000	100%	46000
Unit in ending work in process	1000	100%	1000	70%	700
Equivalent unit of production	47000		47000		46700

Production Cost report

		Direct materials	Conversion Cost
Beginning inventory	27360	8250	19110
Current	1106055	335505	770550
Total Cost to account for	1133415	343755	789660
Total equivalent unit		47000	46700
Average cost		7.3139	16.9092
Completed/Transferred
Direct material	336440
Conversion Cost	777824
Cost of goods manufactured	1114264
Ending inventory
Direct material	7315
Conversion Cost	11836
Cost of ending inventory	19151
Total Cost allocated	1133415