Problem # 1: Mikes Brushes Inc. manufactures electric toothbrushes. The brushes are manufactured in 2...
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Accounting
Problem # 1:
Mikes Brushes Inc. manufactures electric toothbrushes. The brushes are manufactured in 2 sequential processes: Interior and Assembly. The electronics are manufactured in-house in the Interior Department and the casing and bristles are purchased from an outside manufacturer and are added in the Assembly Department.
Information related the Interior Department for the month of March can be summarized as follows
Interior Department:
Beginning Units: 1,300 70% completed
Ending Units: 1,000 30% completed
New Units started this month: 3,000
Direct Materials costs in beginning WIP: $310
Conversion costs in beginning WIP: $705
Direct Materials costs incurred this month: $2,098
Conversion costs incurred this month: $4,047
In the Interior Department, direct materials are added at the beginning of the process while conversion costs are added uniformly throughout the assembly process.
Assuming Bens Brushes uses the weighted average method for process costing, prepare a Product Cost Report reflecting all five steps of the process (Round per unit costs to the nearest cent). Show your computations.
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