Reference no: EM132753408
Department 1 January 1, 2019 BBB Company applies process costing in the manufacture of its sold product. The following data are provided for the year ended December 31, 2019.
100,000 units - 40% completed as to conversion cost
DM - P3M
CC - P7M
December 31, 2019
150,000 units - 80% completed as to conversion cost
Units started during the year
400,000 units
DM - P12M
CC - P28M
Department 2
January 1, 2019
50,000 units -70% incomplete as to conversion cost
Transferred in - P10M
DM - P6M
CC - P4M
December 31, 2019
30,000 units - 10% incomplete as to conversion cost
Units started during the year
DM - P30M
CC - P50M
Additional information:
a. It is the company's policy to add conversion costs evenly throughout the period in the two departments.
b. It is the company's policy to add all direct materials in Department 1 at the start of the process while all direct materials in Department 2 are added at the end of the process.
c. There is no spoilage in both departments.
Requirements:
Problem 1. Compute for the cost of goods manufactured and ending work-in-process for Department 1 using weighted average method.
Problem 2. Compute for the cost of goods manufactured and ending work-in-process for Department 2 using weighted average method.
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