Chapman Manufacturing Company uses the weighted average method for process costing. Chapman produces processed food products that pass through three sequential departments. The costs for Department 1 for February 20X5 were as follows:
Cost of beginning inventory:
Material 11,750
Conversion 20,186
$31,936
Costs added in Department 1 during February:
Direct material $338,620
Direct labor 320,350
Manufacturing overhead 266,590
$925,560
Department 2 handled the following units during February:
Units in process, February 1 3,000
Units started in Department 1 48,000
Units transferred out to Department 2 47,000
Units in process, February 28 4,000
On average, the February 1 units were 30% complete, and the February 28 units were 60% complete. Materials are added at the beginning of the process and conversion costs occur evenly throughout the process in Department 1.
Prepare the product cost report for February for Department 1.
Correct Answer:
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