Cost Management: A Strategic Emphasis 7th Edition by Edward Blocher,David Stout ,Paul Juras,Gary Cokins

Exercise 32

Weighted-Average Method; Transferred-in Costs Sanyo Corporation manufactures a popular model of business calculators in a suburb of Seoul, South Korea. The production process goes through two departments, assembly and testing. The following information (in thousands of South Korean currency, the won) pertains to the testing department for the month of July.

During the month of July, 15,000 units were transferred in from the assembly department at the cost of 141,700 won, and the testing department added costs of 201,820 won, as follows:

During the month, 18,000 units were completed and transferred to the warehouse. At July 31, the completion percentage of work-in-process was as follows:

Required
1. Prepare the production report of the testing department for the month of July using weighted-average process costing.
2. Check the most recent issue of The Wall Street Journal or www.federalreserve.gov/releases/H10/hist to learn the exchange rate between the U.S. dollar and the South Korean won.