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Chapman Manufacturing Company Uses the Weighted Average Method for Process

Question 138

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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.

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