Marine Supply Company manufactures boat products. Its products move through two departments: development and packaging. Production and...

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Accounting

Marine Supply Company manufactures boat products. Its productsmove through two departments: development and packaging. Productionand cost data for the packaging department are asfollows:
Work in process inventory, March 1 (16,000 units)
Costs transferred in
$ 18,480
Materials cost
5,440
Conversion costs (30% complete)
3,584
Costs incurred in March
Transferred in (200,000 units)
$150,000
Materials cost
68,000
Conversion costs
112,000

All materials are added at the beginning of the packaging process.Ending inventory consists of 24,000 units, 100% complete as tomaterials and 60% complete as to conversion.

Prepare a production cost report for the packaging department forMarch. Use the average cost method.
(Use either format shown in Chapter 18 or in my Chapter 18 HWsolution.)

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Solution Production cost reportWeighted Avergae Physical Units Total costs transferred In Materials Conversion Flow of Production units Units to be accounted for Beginning WIP Inventory 16000 Units started this period See Answer

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Work in process inventory, March 1 (16,000 units)
Costs transferred in	$ 18,480
Materials cost	5,440
Conversion costs (30% complete)	3,584
Costs incurred in March
Transferred in (200,000 units)	$150,000
Materials cost	68,000
Conversion costs	112,000