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Cannery Row produces condensed tomato soup using two processes: mixing and canning. The company’s accountant has provided the following process costing data for February 2019:

**Cannery Row - Process Costing Data for February 2019**

| | Mixing Dept | Canning Dept |
|-------------------------|-------------|--------------|
| **Units (i.e., gallons of product)** | | |
| Beginning Work in Progress (WIP) (in gallons) | 1,000 | 2,000 |
| Units started in production this month (in gallons) | 23,000 | See Mixing |
| Units/gallons completed & transferred out during the month | 20,000 | 13,500 |
| **Completion percentage at end of month:** | | |
| Ending WIP, direct materials added (%) | 50% | 10% |
| Ending WIP, conversion work performed (%) | 25% | 75% |
| **Costs** | | |
| Beginning WIP, costs added in prior periods: | | |
| Transferred in costs | N/A | 33,000 |
| Direct materials | 12,000 | 9,250 |
| Conversion cost: direct labor | 10,000 | 12,125 |
| Conversion cost: overhead applied | 16,000 | 40,000 |
| **Costs added to process in February 2019:** | | |
| Direct materials | 98,000 | 62,500 |
| Conversion cost: direct labor | 25,000 | 20,000 |
| Conversion cost: overhead applied | 75,000 | 67,000 |

Due to a machine breakdown in the Canning Department, the company faced a backlog of work in this department during February 2019.

**Required:**

1. Using the data provided above and the template on the next page, prepare the process costing report for the Mixing Department for February 2019 using the weighted average method.

2. Using the data above and your answer from part 1, prepare the process costing report for the Canning Department for February 2019 using the weighted average method. Use the 2nd template provided.

Answer :

Final answer:

The weighted average method is used to calculate process costing reports for the Mixing and Canning Departments in Cannery Row.

Explanation:

In the Mixing Department of Cannery Row, the weighted average method is used to calculate the process costing report. To calculate the equivalent units of production, we take into account the units completed and transferred out, as well as the units in ending work in progress (WIP) at different stages of completion. The cost per equivalent unit is determined by dividing the total cost of the process by the equivalent units of production.

In the Canning Department, a backlog of work due to a machine breakdown impacted the production in February 2019. To prepare the process costing report using the weighted average method, we calculate the equivalent units of production and the cost per equivalent unit. The total cost is then allocated to the units completed and transferred out, as well as the units in ending WIP.

Learn more about Weighted average method here:

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