Product Cost Report—Weighted Average Method Gomez Manufacturing Corporation produces a dandruff… 1 answer below »

Product Cost Report—Weighted Average Method

Gomez Manufacturing Corporation produces a dandruff shampoo in three consecutive processes. The costs of Department 1 for June 2016 were as follows: Cost of beginning inventory Direct material $16,500 Conversion costs 38,220 Costs added in Department 1 Direct material $671,010 Direct labor 1,074,900 Manufacturing overhead 466,200 2,212,110

Department 1 handled the following units during June: Units in process, June 1 2,000 Units started in Department 1 45,000 Units transferred to Department 2 46,000 Units in process, June 30 1,000

On average, the June 1 units were 40% complete; the June 30 units were 70% complete. Direct materials are added at the beginning of the process, and conversion costs occur evenly throughout the process in Department 1. Gomez uses the weighted average method for process costing.

Required

Prepare the product cost report for Department 1 for June.

Round average cost per equivalent unit to four decimal places. Use rounded answers for subsequent calculations. Round other answers to the nearest whole number.

Gomez Manufacturing Corporation Department 1
Flow of Units and Equivalent Units Calculations, June 2016 Equivalent Units % Work
Done Direct
Materials % Work
Done Conversion
Costs Complete/Transferred Answer Answer% Answer Answer% Answer Ending Inventory Answer Answer% Answer Answer% Answer Total Answer Answer

Product Cost Report Direct
Materials Conversion
Costs Beginning Inventory $Answer $Answer $Answer Current Answer Answer Answer Total Costs to Account For $Answer $Answer $Answer ÷ Total Equivalent Units Answer Answer Average cost / Equivalent unit (round four decimal places) $Answer $Answer Complete / Transferred: Direct Materials $Answer Conversion costs Answer Cost of Goods Manufactured $Answer Ending Inventory: Direct Materials $Answer Conversion costs Answer Cost of Ending Inventory $Answer Total Costs Allocated

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