Pet Products Company uses an automated process to manufacture its pet replica products. For June, the company had the following activities: Beginning work in process inventory?4,500 items, 1/4 complete Units placed in production?15,000 units Units completed?17,500 units Ending work in process inventory?2,000 items, 3/4 complete ? Cost of beginning work in process?$5,250 Direct material costs, current?$16,500 Conversion costs, current?$23,945 Direct materials are placed into production at the beginning of the process and conversion costs are incurred evenly throughout the process. Required: Prepare a production cost worksheet using the weighted average method.
Paticulars Amount ($)
Direct material consumed 16500
Conversion Cost 23945
Prime Cost 40445
Add:- Opening Stock of WIP (Given) 4500 units 5250
Less;- Closing Stock of WIP (W.N.1) 2000 Units (4656)
cost of Finished quantities 17500 units 41039
So codt of per unit of finished product is (41039/17500) 2.35/ unit
* Their might be rounding off difference in answer
W.N.1 value of Closing stock - Weighted Average Method
2000 units
Material cost (16500/15000)*2000- 2200
Conversion cost (23945/19500)*2000- 2456
Value of closing inventory = 4656
Get Answers For Free
Most questions answered within 1 hours.