Silver Spoon Incorporated is a manufacturer of cookware. It produces all its products in one department. The information for the current month is as follows:

Starting work in process 40,000 units

Units started 52,000 units

Units completed 73,000 units

Final work in progress 16,000 units

Deterioration 3,000 units

Initial direct materials from work in process $30,000

Beginning of work-in-process conversion $8,000

Direct materials added during the month $126,400

Direct manufacturing labor during the month $60,480

The initial work in process was 25% complete in terms of conversion. Direct materials are added at the beginning of the process. Factory overhead is applied at a rate equal to 40% of direct manufacturing labor. Final work in process was 60% complete. All deterioration is normal and is detected at the end of the process.

Required: Prepare a production cost worksheet if impairment is recognized and the weighted average method is used.

Answer rating: 100% (QA)

To prepare a production cost worksheet using the weighted average method we need to calculate the equivalent units of production for direct materials ... View the full answer