Cost Management 6th Edition by Edward Blocher,David Stout ,Paul Juras,Gary Cokins

Exercise 43

Reconditioning Service; Weighted-Average Method Golf World Inc. (GWI) sells products and services for the sport of golf. One of its key business units specializes in the repair and reconditioning of golf carts. GWI enters into contracts with a number of golf clubs throughout the U.S. in which the clubs send their carts to GWI for a complete recondition: motor, frame repair where necessary, and replacement of seat covers and canvas tops. The clubs usually will cycle 10-15 percent of their carts through this process each year. Because GWI's business has been growing steadily, it is very important to complete the reconditioning of the carts within a budgeted time and cost. The firm uses weighted-average process costing to keep track of the costs incurred in the reconditioning process.
GWI's golf cart operations has the following information for the month of November, in which 1,200 carts were started for reconditioning:
Required
1. Complete the cost report for the month of November.
2. GWI is scheduled to start another batch of 1,500 carts for reconditioning in December. Comment on the information the cost report contains regarding planning for December's work.