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Cost of production summary; materials not added uniformly throughout process; average costing.

Tejas Manufacturing, Inc. manufactures a single product on a continuous plan in three departments. On June 1, the work in process in the Assembly Department was:

Cost in preceding department ....... $25,000

MaterialsAssembly .............. 0

LaborAssembly ......... $2,720

Factory overheadAssembly ......... $1,360

Units in process ........... 5,000

Costs in Assembly during June were:

Materials ....... $10,000

Labor ....... $25,000

Factory overhead ....... $12,500

During June, 45,000 units were received from the Machining Department at a cost of $225,000; 40,000 units were completed in Assembly, of which 38,000 were transferred to the Painting Department, and 2,000 were on hand in Assembly at the end of the month. Ten thousand units were still in process, estimated to be one-half complete as to labor and factory overhead. All materials are added at the end of the process in Assembly.

Instructions:Complete the following cost of production report for Assembly, using the average costing method for beginning work-in-process inventories. (Round unit costs to three decimal places.)

Hint:First complete the equivalent production schedule before attempting to compute the unit cost of work added during the period.

Tejas Manufacturing, Inc.

Cost of Production SummaryAssembly

For the Month of June, 2008

Cost of work in process, beginning of month:

Cost in Machining $

Cost in Assembly:

Materials $

Labor

Factory overhead $

Cost of goods received from Machining during month

Cost of production for month:

Materials $

Labor

Factory overhead

Total costs to be accounted for $

Unit output for month:

Materials

Finished and transferred to Painting during month

Equivalent units of work in process, end of month

Finished and on hand

Total equivalent production

Labor and factory overhead:

Finished and transferred to Painting during month

Equivalent units of work in process, end of month

Finished and on hand

Total equivalent production

Unit cost for month:

Materials $

Labor

Factory overhead

Total $

Inventory costs:

Cost of goods finished and transferred to Painting during month:

Cost in Machining $

Cost in Assembly $

Cost of work in process, end of month:

Finished and on hand:

Cost in Machining $

Cost in Assembly

Still in process:

Cost in Machining $

Cost in Assembly:

Materials $

Labor

Factory overhead

Total production cost accounted for $

Total cost from preceding dept.:

Work in processbeginning inventory $

Transferred in during period

Total $

Total units from preceding dept.:

Work in processbeginning inventory

Transferred in during period

Total

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