Question

E16-6 The Cutting Department of Cassel Company has the following production and cost data for July Det cos Production 1. Transferred out 12,000 units. 2. Started 3,000 units that are 60% complete as to conversion costs and 100% complete as to materials at July 31. Costs Beginning work in process Materials Labor Manufacturing overhead $ -0- 45,000 16,200 18,300 Materials are entered at the beginning of the process. Conversion costs are incurred uni- formly during the process Instructions (a) Determine the equivalent units of production for (1) materials and (2) conversion costs (b) Compute unit costs and papere a cost reconciliation schedule. Pre (LO E16-7 The Sanding Decorim tot Ouik Furniture Company has the following production and manufacturing cost cinta for Wirea 2017, the first month of operation. Production: 7,063 be and transferred out; 3,000 units started that are 100% complete as to matchid 20 complete as to conversion costs. Manufacturing costs: Sateriais $33,000; labor $21,000; and overhead $36,000. Instructions Prepare a production cost report. E16-8 The Blending Department of Luongo Company has the following cost and produc- tion data for the month of April. Det cos Costs: Work in process, April 1 Direct materials: 100% complete Conversion costs: 20% complete Cost of work in process, April 1 Costs incurred during production in April Direct materials Conversion costs Costs incurred in April $100,000 70,000 $170,000 $ 800,000 365,000 $1,165,000 Units transferred out totaled 17,000. Ending work in process was 1.000 units that are complete as to materials and 40% complete as to conversion costs

Answer 1

Answer-E 16-6

	Materials	Conversion Costs
Units transferred out	12,000	12,000
Work in process, July 31
3,000*100%	3,000
3,000*60%		1,800
Total equivalent units	15,000	13,800
b
Materials	45,000 /15,000	3.00
Conversion Costs	(18,300+16,200)/13,800	2.50
		5.50
Transferred out	12,000*5.50	66,000
Materials	3,000*3.00	9,000
Conversion Costs	1,800*2.50	4,500
a
Determine the equivalent units of production for (1) materials and (2) conversion costs.
	Materials	Conversion Costs
	15,000	13,800
b
Compute unit costs.
Materials	3.00
Conversion Costs	2.50
Cost Reconciliation
Costs accounted for
Transferred out		66,000
Work in process, July 31
Materials	9,000
Conversion Costs	4,500	13,500
Total costs		79,500

E 16-7

		Equivalent Units
Quantities	Physical Units	Materials	Conversion Cost
Units to be accounted for
Work in process, March 1	0
Started into production	10,000
Total Units	10,000
Units to be accounted for
Transferred out	7,000	7,000	7,000
Work in Process, March 31	3,000	3,000	600 (3,000*20%)
Total Units	10,000	10,000	7,600

Costs	Materials	Conversion Cost	Total
Costs in March (a)	33,000	57,000	90,000
Equivalent units (b)	10,000	7,600	17,600
Units Cost (a/b)	3.3	7.5	10.80
Cost to be accounted for
Work in process,March 1			0
Started into production			90,000
Total Costs			90,000

Cost Reconciliation Schedule
Cost accounted for
Transferred out	7,000*10.80	75,600	75,600
Work in process
Materials	3,000*3.3	9,900
Conversion	600*7.5	4,500	14,400
Total Costs			90,000