Victoria’s Closet mass-produces luxurious sleepwear for women. Consider the following data for the Flannel Night Gown Department for the month of January. All direct materials are added at the beginning of production in the department, and conversion costs are incurred evenly throughout production. Inspection occurs when production is 100% completed. Normal spoilage is 6,600 units for the month.
Physical Units
Beginning WIP (25% complete) ....... 11,000
Started during January ........... 74, 0000
Total to account for ............ 85,000
Good units completed and transferred out during current period:
From beginning work in process ...... 11,000
Started and completed ........... 50,000
Spoiled units ............. 8,000
Ending WIP (75% complete) ....... 16,000
Total accounted for ........... 85,000
Costs
Beginning WIP:
Direct materials .......... $ 220,000
Conversion costs ......... 30,000
Total beginning WIP ........ 250,000
Costs added during current period:
Direct materials .......... 1,480,000
Conversion costs ........ 942,000
Costs to account for ....... $2,672,000

REQUIRED
Prepare a process cost report using the weighted average method.