Cornerstones of Cost Management 2nd Edition by Don Hansen ,Maryanne Mowen

Exercise 6

Weighted Average Method, Single Department Analysis, Uniform Costs
Hatch Company produces a product that passes through three processes: Fabrication, Assembly, and Finishing. All manufacturing costs are added uniformly for all processes. The following information was obtained for the Fabrication Department for December:
a. Work in process, June 1, had 90,000 units (40 percent completed) and the following costs:

b. During the month of June, 180,000 units were completed and transferred to the Assembly Department, and the following costs were added to production:

c. On June 30, there were 45,000 partially completed units in process. These units were 80 percent complete.
Required:
Prepare a cost of production report for the Fabrication Department for June using the weighted average method of costing. The report should disclose the physical flow of units, equivalent units, and unit costs and should track the disposition of manufacturing costs.