Highlander Corporation is a manufacturer that uses the average cost method to account for costs of production. Highlander manufactures a product that is produced in three separate departments: molding, assembling, and finishing. The following information was obtained for the assembling department for the month of June:
Work in process, June 1: 4,000 units composed of the following: The following activity occurred during the month of June:
(1)
20,000 units were transferred in from the molding department at a cost of $300,000.
(2)
Costs were added by the assembling department as follows: (3) Materials are added at the end of the process.
(4)
18,000 units were completed and transferred to the finishing department. At June 30, 6,000 units were still in process. The degree of completion of work in process at June 30 follows: Prepare in good form a cost of production report for the assembling department for the month of June. Show supporting computations in good form. The report should include:
a.Equivalent units of production.
b.Total manufacturing costs.
c.Cost per equivalent unit.
d.Dollar amount of ending work in process.
e.
Dollar amount of inventory cost transferred out.

Question

Highlander Corporation is a manufacturer that uses the average cost method to account for costs of production. Highlander manufactures a product that is produced in three separate departments: molding, assembling, and finishing. The following information was obtained for the assembling department for the month of June:
Work in process, June 1: 4,000 units composed of the following:  The following activity occurred during the month of June:
(1)
20,000 units were transferred in from the molding department at a cost of $300,000.
(2)
Costs were added by the assembling department as follows:  (3) Materials are added at the end of the process.
(4)
18,000 units were completed and transferred to the finishing department. At June 30, 6,000 units were still in process. The degree of completion of work in process at June 30 follows:  Prepare in good form a cost of production report for the assembling department for the month of June. Show supporting computations in good form. The report should include: 
a.Equivalent units of production.
b.Total manufacturing costs.
c.Cost per equivalent unit.
d.Dollar amount of ending work in process.
e.
Dollar amount of inventory cost transferred out.

Quizplus · Accepted Answer

The Answer of Highlander Corporation is a manufacturer that uses the average cost method to account for costs of production. Highlander manufactures a product that is produced in three separate departments: molding, assembling, and finishing. The following information was obtained for the assembling department for the month of June:
Work in process, June 1: 4,000 units composed of the following:  The following activity occurred during the month of June:
(1)
20,000 units were transferred in from the molding department at a cost of $300,000.
(2)
Costs were added by the assembling department as follows:  (3) Materials are added at the end of the process.
(4)
18,000 units were completed and transferred to the finishing department. At June 30, 6,000 units were still in process. The degree of completion of work in process at June 30 follows:  Prepare in good form a cost of production report for the assembling department for the month of June. Show supporting computations in good form. The report should include: 
a.Equivalent units of production.
b.Total manufacturing costs.
c.Cost per equivalent unit.
d.Dollar amount of ending work in process.
e.
Dollar amount of inventory cost transferred out.

Highlander Corporation Is a Manufacturer That Uses the Average Cost