Problem B A production company uses a process cost system. The following costs and production data are for the Mixing Department in June: Work in process inventory, June 1 consisted of 68600 units and costs of: (The beginning inventory was 100% complete for materials and 40% complete for conversion costs.) Direct materials $19,600 Conversion Costs $47,950 $ 7 Units started in June 93,830 units 3 9 Costs incurred during June: DO Direct materials $65,700 Direct labor $92,860 1 02 03 Units completed and transferred out in June 110,440 units 04 The ending Work in Process Inventory on June 30 was 70% complete for materials and 70% complete 05 for conversion costs. 06 07 Required: a. Prepare a production cost report for the month ended June 30 using the weighted average method Homework Settings Production Company Process Cost Summary For Month Ended June 30 Hint? Costs Charged to Production Costs of beginning work in process Direct materials Conversion Costs Costs incurred this period Direct materials Conversion Costs Total costs to account for Hint? Unit Cost Information Physical Flow of Units: Beg. WIP Inv units Units started Total units to account for Self check Units completed and transferred out Units in ending WIP Inv. Total units accounted for DM Cony Equivalent Units of Production (EUP) Units in End. WIP + Self check DM Conv #ON/O! #DIV/0! 34 Units in End. WP 35 36 37 38 Total Equivalent units of production 39 40 41 Cost per Equiv Unit of Production 42 43 144 Total Costs 45 46 Cost per Equivalent Unit 147 148 Cost Assignment and Reconciliation 149 Costs transferred out (cost of goods manufactured) 150 Direct materials Conversion Costs 152 Total cost transferred out 153 154 Costs of ending work in process 155 Direct materials 156 Conversion Costs 157 Total cost of ending work in process 158 Total costs accounted for Hint? round to nearest dollar (no decimals) 151 Hint? Total costs accounted for Journal Entry: Enter journal entry to record moving goods from Work in Process to Finished Goods (also Cost of Goods Manufactured) 3 Hint? 5 Debit Credit 16 57 58 59 10 1 Critical Thinking (Analysis): Explain why we use equivalent units in Process Costing. 72 73 74