Question

Please answer using the numbers given in THIS problem... Thank you.

The Sanding Department of Quik Furniture Company has the following production and manufacturing cost data for March 2020, the first month of operation. Production: 6,380 units finished and transferred out; 3,000 units started that are 100% complete as to materials and 20% complete as to conversion costs. Manufacturing costs: Materials $33,299; labor $21,400; overhead $35,487. Prepare a production cost report. (Round unit costs to 2 decimal places, e.g. 2.25 and other answers to 0 decimal places, e.g. 125.)

Answer 1

Solution:

Sanding Department Computation of Equivalent units
Particulars	Physical Units	Equivalent units
		Material	Conversion
Work in Process, beginning	0
Started during the current period	9380
Total units to account for	9380
Units accounted for:
Unit completed & Transferred out	6380	6380	6380
Closing WIP:	3000
Material (100%)		3000
Conversion (20%)			600
Equivalent units of production	9380	9380	6980

Sanding Department Computation of Cost per equivalent unit of Production
Particulars	Material	Conversion
Opening WIP	$0.00	$0.00
Cost Added during Period	$33,299.00	$56,887.00
Total cost to be accounted for	$33,299.00	$56,887.00
Equivalent units of production	9380	6980
Cost per Equivalent unit	$3.55	$8.15

Sanding Department Computation of Cost of ending WIP and units completed & transferred out
Particulars	Material	Conversion	Total
Equivalent unit of Ending WIP	3000	600
Cost per equivalent unit	$3.55	$8.15
Cost of Ending WIP (Equivalent unit * Cost per equivalent unit)	$10,650	$4,890	$15,540
Units completed and transferred	6380	6380
Cost of units completed & Transferred (Unit completed * cost per equivalent unit)	$22,649	$51,997	$74,646

Sanding Department Cost reconcilaition
Particulars	Amount
Costs to be accounted for:
Cost of beginning WIP inventory	$0.00
Cost added to production	$90,186.00
Total Cost to be accounted for	$90,186.00
Costs accounted for as follows:
Cost of unit transferred out	$74,646
Ending WIP	$15,540
Total cost accounted for	$90,186.00