- Eire Products Is A Specialty Lubricants Company The Lake Plant Produces A Single Product In Three Departments Filterin 1 (41.75 KiB) Viewed 5 times
- Eire Products Is A Specialty Lubricants Company The Lake Plant Produces A Single Product In Three Departments Filterin 2 (53.32 KiB) Viewed 5 times
Eire Products is a specialty lubricants
company. The Lake Plant produces a single product in three departments: Filtering, Blending. and Packaging. Additional materials are added in the Blending Process when units are 50 to 55 percent complete with respect to conversion. Information for operations in June in the Blending process appear as follows. Work in process on June 1 consisted of 9,000 barrels with the following costs. Filtering costs transferred in Costa added in alending Direct materials Conversion costs Work in process June 1 Direct materials Conversion costs Total costs added Amount $10,540 $367,500 538,265 $925,765 $ 0 18,335 $18,335 $20,875 During June, 116,000 barrels were transferred in from Filtering at a cost of $151,960. The following costs were added in Blending in June. Degree of Completion 100% OR 30% Blending finished 115,000 barrels in June and transferred them to Packaging. At the end of June, there were 10,000 barrels in work in process inventory. The units were 60 percent complete with respect to conversion costs. The Blending Department uses the weighted-average method of process costing. The Filtering Department at Eire uses the FIFO method of process costing. The cost analyst in Blending has learned that if the Filtering Department at Eire had used the weighted average method, the amount of costs transferred in from Filtering would have been $10,340 in the beginning work in process and $149,660 for the amount transferred in this month. Required: Prepare a production cost report for June for the Blending Department. (Round "Cost per equivalent unit" to 2 decimal places.)
Flow of Production Units Units to be accounted for: Beginning WIP inventory Units started this period Total units to be accounted for Units accounted for: Units completed and transferred out: From beginning inventory Started and completed currently Total transferred out Units in ending WIP inventory Total units accounted for Costs to be accounted for Costs in beginning WIP inventory Current period costs Total costs to be accounted for Cost per equivalent unit: Prior department costs Materials Conversion EIRE PRODUCTS Blending Department Production Cost Report-Weighted-Average Physical units Costs accounted for Costs assigned to units transferred out Prior department costs Materials Conversion Total costs of units transferred out Costs assigned to ending WIP inventory: Prior department costs Materials Conversion Total ending WIP inventory Total costs accounted for 9,000 116,000 125,000 9,000 106,000 115,000 10,000 125,000 $ $ Prior Total Costs Department Costs $ $ $ 28,875 $ 10,540 1,077,725 151,960 387,500 $ 1,106,600 $ 162,500 $ 387,500 $ 0 13,100 31,000 27,300 10,000 10,000 s 1.31 Materials Conversion 13,100 10,000 10,000 $ 3.10 31,000 71,400 71,400 $ 13,100 $ 31,000 $ $ $ 6,000 6,000 18,335 538,265 556,600 4.55 27,300 27,300