?Don’t Cry Over Spilled? Milk, Inc., a manufacturer of? mops,uses the weighted average method in its processing costing system.The company uses a departmental costing system to allocatemanufacturing overhead? (MOH) to production. Production in the?company'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 June?2018:
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.
?(round all calculation to 2 decimal places. round final answersto the nearest
dollar.?)
The cost to assemble one mop in June was
A.?$19.87
B.?$13.77
C.?$19.67
