Honeybutter, Inc., manufactures a product that goes through two departments prior to completion. The following information is available on work in the mixing department during June:
Units Materials Conversion
Work in Process, June 1 70,000 5/7 3/7
Started into production 460,000
Completed and transferred out 450,000
Work in Process, June 30 80,000 3/4 5/8
Cost in the beginning work in process inventory and cost added during June were as follows:
Work in Process, June 1 $ 35,000 $ 17,000
Costs added during June 391,000 282,000
The company uses the weighted average method to compute unit costs. The mixing department is the first department in the production process; after mixing has been completed, the units are transferred to the bottling department.
Prepare a production report for the mixing department for June.
The solution explains how to prepare a production cost report using the weighted average method