Sherbrooke Toboggan Company manufactures toboggans for the Canadian market. The product goes through three manufacturing processes: forming, sealing, and assembly. In the forming department, the wood is shaped into the proper form; in the sealing department, a lacquer is applied to seal the wood and give it a satin finish; in the assembly department, the wood is assembled into the final product and cushions and rope are attached to the toboggan.
The company uses the weighted average cost method to calculate production costs, and materials are added in the sealing department at the very beginning of the process. During the month of August, the following information was determined for the sealing department:

Required:
1. Prepare a cost of production report for the sealing department for the month of August, including all five steps. (Take all calculations to four decimal places).
2. Determine the unit cost in the previous period in the sealing department.

Transcribed Image Text:

BWIP: 2,000 60% Units Percentage complete Costs: Transferred in s105,000 $3,950 $12,350 Materials Conversion Current production Units started 15,000 Costs: Transferred in S750,000 $30,000 S125,500 Materials Conversion EWIP: Units 5,000 Percentage complete 35%