Question

E16-6 The Cutting Department of Cassel data for July ing Department of Cassel Company has the following production and cost Determine cu costs, and assi (LO 3, 4), AP Production Costs 1. Transferred out 12,000 units $-0- Beginning work in process 2. Started 3,000 units that are 60% 45,000 Materials complete as to conversion 16,200 Labor costs and 100% complete as Manufacturing overhead 18,300 to materials at July 31. 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 prepare a cost reconciliation schedule. E16-7 The Sanding Department of Cuik Furniture Company has the following production and manufacturing cost data for March 2017, the first month of operation Prepare a pro (LO 3, 4). AP XLS Production: 7,000 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 $33.000; labor $21,000; and overhead $36,000. Instruction Prepare a production cost report E16-8 The Blending Department of Luong computer has the lasing cost and produc- tion data for the month of April Determine ege costs, and ass (LO 3, 4), AP $100.000 7G UDG $170,000 Costs: Work in process, Aprili 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 $ 800.000 365,000 $1,165,000 misuransferred 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 100

Answer 1

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Equivalent Units of production
Direct material			15,000
Conversion Cost			13,800
Cost per Equivalent Unit
Direct material			$            3.00
Conversion Cost			$            2.50
Total			$            5.50
Cost reconciliation
Cost in beginning WIP			$                 -
Cost incurred during Month			$        79,500
Total cost to be accounted for			$        79,500
Cost of units transferred out			$        66,000
Cost of ending WIP inventory			$        13,500
Total cost accounted for			$        79,500

Calculation

Cassel Company
Cutting Department production Report
Summary of Physical units
Units in beginning WIP inventory			0
Units started during month			15000
Total unit to be accounted for			15000
Units completed and transferred out			12000
Units in ending WIP inventory			3000
Total unit accounted for			15000
Equivalent Units of production
Particulars	Physical units	Direct material		Conversion Cost
		%	units	%	units
units in beginning WIP inventory	0	100%	0	100%	0
Units in Started and completed (12000-0)	12000	100%	12000	100%	12000
units in ending WIP inventory	3000	100%	3000	60%	1800
Equivalent Units of production			15,000		13,800
Summary of cost to be accounted
	Direct material	Conversion Cost	Total
Cost in beginning WIP	-	-	-
Cost incurred during Month (Add) (Conversion cost = 16200+18300)	$        45,000	$        34,500	$        79,500
Total cost to be accounted for	$        45,000	$        34,500	$        79,500
Cost per Equivalent Unit
total cost to be accounted for	$        45,000	$        34,500
Divided by: Equivalent Units of production	15,000	13,800
Cost per Equivalent Unit	$             3.00	$             2.50	$            5.50
Assign costs to units transferred out and units in ending WIP inventory
cost assigned to units transferred out
units completed and transferred out	12,000	12,000
Cost per Equivalent Unit	$             3.00	$             2.50
cost assigned to units transferred out	$        36,000	$        30,000	$        66,000
cost assigned to units ending work in progress
equivalent units in ending WIP inventory	3,000	1,800
Cost per Equivalent Unit	$             3.00	$             2.50
cost assigned to units ending work in progress	$          9,000	$          4,500	$        13,500
Total cost assigned			$        79,500