Gianna's Office Supplies manufactures desk organizers in its Production Department. Direct materials are added at the beginning of the process and conversion costs are incurred evenly throughout the production cycle. 

Inspection takes place at the end of the process and spoiled units generally constitute 4% of the good units. Data provided for April are as follows

 

WIP, beginning inventory April 1 25,000 units

Direct materials (100% complete)

Conversion costs (50% complete)

Started during April 82,000 units

Completed and transferred out 81,000 units

WIP, ending inventory April 30 15,000 units

Direct materials (100% complete)

Conversion costs (25% complete)

Costs:

WIP, beginning inventory:

Direct materials $150,000

Conversion costs 44,000

Direct materials added 209,916

Conversion costs added 109,893

Required:please can you solve the question by preparing production cost report using weighted-average for the production department. Please ensure you identify any spoilage in your report.

Answer rating: 100% (QA)

Giannas Office Supplies Production Cost Report for April using weightedaverage method Beginning Work ... View the full answer