Don’t Cry Over Spilled Milk, Inc., a manufacturer of mops, usesthe weighted average method in its processing costing system. Thecompany uses a departmental costing system to allocatemanufacturing overhead (MOH) to production. Production in thecompany's first processing department, Machining, is highlyautomated. As such, machine hours are used as the allocation basein the department.
At the beginning of the year, the company estimated that itstotal MOH would be $400,000; 87.5% of which was expected to begenerated in the Machining department. The Machining department wasexpected to log 100,000 machine hours during the year. Thefollowing data related to the operations in Machining during June2018:
Beginning Work in Process | 650 mops, 60% complete with respect to all product costs |
Costs in Beginning Work in Process | $2,524 |
Units Started in June | 14,200 mops |
Direct Product Costs Added During June | direct materials $47,000; direct labor $124,000 |
Ending Work in Process | 400 mops, 70% complete with respect to all product costs |
During June, 8,500 actual machine hours were logged duringproduction.
The cost to assemble one mop in June was
A.
?$19.87
B.
?$13.80
C.
?$19.67
D.
?$11.78
E.
?$13.77
