Question: please assist with this exercise it's managerial accounting OBJECTIVE 1 2 4 5 Homework Problem 6-57 Weighted Average Method, Nonuniform Inputs, Multiple Departments Benson Pharmaceuticals

 please assist with this exercise it's managerial accounting OBJECTIVE 1 2

4 5 Homework Problem 6-57 Weighted Average Method, Nonuniform Inputs, Multiple Departments

please assist with this exercise it's managerial accounting

OBJECTIVE 1 2 4 5 Homework Problem 6-57 Weighted Average Method, Nonuniform Inputs, Multiple Departments Benson Pharmaceuticals uses a process-costing system to com- pute the unit costs of the over-the-counter cold remedies that it produces. It has three departments: Mixing, Encapsulating, and Bottling. In Mixing, the ingredients for the cold capsules are measured, sifted, and blended (materials are thus assumed to be uniformly added throughout the process). The mix is transferred out in litre containers. The encapsulating depart- ment takes the powdered mix and places it in capsules (capsules are necessarily added at the beginning of the process). One litre of powdered mix converts into 1,500 capsules. After the cap- sules are filled and polished, they are transferred to Bottling, where they are placed in bottles that are then affixed with a safety seal, lid, and label. Each bottle receives 50 capsules. During March, the following results are available for the first two departments: Mixing Encapsulating 10 litres 4,000 R 2,520 R 2,820 R R 320 200 R 1,400 Beginning inventories: Physical units Costs: Materials Labour Overhead Transferred in Current production: Transferred out Ending inventory Costs: Materials Transferred in labour Overhead Percentage of completion: Beginning inventory Ending inventory 140 litres 20 litres 208,000- 6,000 R36,360 R 15,730 R46,180 R 19,440 40% 50% 50% 40% Overhead in both departments is applied as a percentage of direct labour costs. In the mixing department, overhead is 200% of direct labour. In the encapsulating department, the overhead rate is 150% of direct labour. Required: 1. Prepare a production report for the mixing department using the weighted average method. Follow the five steps outlined in the chapter. (Note: Round to two decimal places for the unit cost.) 2. Prepare a production report for the encapsulating de- partment using the weighted average method. Follow the five steps outlined in the chapter. (Note: Round to four decimal places for the unit cost.) 3. CONCEPTUAL CONNECTION Explain why the weighted average method is easier to use than FIFO. Explain when weighted average will give about the same results as FIFO

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!