Edenton Boat Company Manufactures Small Pleasure Boats on an Assembly-Line

question 39

Essay

Edenton Boat Company manufactures small pleasure boats on an assembly-line basis. The units are started in the Department A. On July 1 of this year, the Work-in-Process inventory of the Department A consisted of 200 units 100% complete as to materials and 40% complete as to conversion. During the month, 400 units were started and 500 units were completed and transferred out. The Work-in-Process on July 31 was 100% complete as to materials and 30% complete as to conversion.
Costs in process at the beginning of the period amounted to $600,000 for materials and $160,000 for conversion. Costs added during the period were materials costs of $1,802,700 and conversion costs of $905,512.
Required:
Prepare a production cost report using the weighted-average method.

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Definitions:

Standards And Procedures

Established guidelines and processes designed to ensure consistent quality, safety, and efficiency in operations or activities.

Organizational Values

The core principles and beliefs that guide and shape the behavior and culture of an organization and its employees.

Corporate Values

The core principles and beliefs that guide a company's behaviors, decisions, and culture.

Personal Values

Core beliefs or standards that guide and motivate attitudes and actions.