Question

(LO 3, 4), AP The Welding Department of Healthy Company has the following production and manufacturing cost data for February 2022. All materials are added at the beginning of the process. Manufacturing Costs Production Data Beginning work in process Beginning work in process 15,000 units Materials $18,000 1/10 complete Conversion costs 14,175 $ 32,175 Units transferred out 55,000 Materials 180,000 Units started 51,000 Labor 67,380 Ending work in process 11,000 units Overhead 61,445 1/5 complete Instructions Prepare a production cost report for the Welding Department for the month of February.

Answer 1

Welding Department
Production Cost Report
Quantities	Physical Units	Materials	Conversion Costs
Units to be accounted for
Work in process, February 1	15000
Started into production	51000
Total units	66000
Units accounted for
Transferred out	55000	55000	55000
Work in process, February 28	11000	11000	2200
Total units	66000	66000	57200
Costs	Materials	Conversion Costs	Total
Unit costs
Total Costs	$      1,98,000.00	$         1,43,000.00	$   3,41,000.00
Equivalent units	66000	57200
Unit costs	$                     3.00	$                       2.50	$                 5.50
Costs to be accounted for
Work in process, February 1			32175
Started into production			308825
Total costs			$   3,41,000.00
Costs accounted for
Transferred out 55000*5.50			$   3,02,500.00
Work in process, February 28
Materials 11000*3			$       33,000.00
Conversion costs 2200*2.50			$         5,500.00
Total costs			$   3,41,000.00