Question

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.

Homework Answers

Answer #1

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

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