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.)
