Question

ACCT 301 Week 6 HW Exercise 4 Process cost system Step #1 Physical flow begin WIP Started Transferred out End WIP 2000 4000 4000 The Finishing Department of Cosette Company has the following production and cost data for July 1 Beginning Inventory 4000 units 2 Transferred out, 4,000 units. Beginning 4000 units (a) Equivalent Units Physical Units Materials Conversion Costs 3 Started 2,000 units that are 40% completed at July 31. 4 Materials added, $30,000; conversion costs incurred, $19,200. Transferred Out 4,000 Work in Process, July 31 ? Total Materials are entered at the beginning of the process. Conversion costs, %, are incurred uniformly during the process. Unit costs Materials cost per unit ($30,000 x units) (b) Instructions Compute the equivalent units of production for materials and conversion costs for the month of July Compute unit costs and prepare a cost reconciliation schedule. Ка) ($19,200+ y units) Conversion cost per unit (b) Labor plus overhead Cost Reconciliation Schedule Conversion Prime = materials and labor Costs accounted for Transferred out Work in process, July 31 Materials Conversion costs Total costs

Answer 1

Step 1

Begin WIP	started	=	Transferred out	End WIP
4000	2000	=	4000	2000

Part A

		Equivalent units
	Physical units	Materials	Conversion costs
Transferred out	4000	4000	4000
Work in process, July 31	2000	2000	800 (2000*40%)
Total	6000	6000	4800

Part B

Materials cost per unit	(30000/6000)	$5
Conversion cost per unit	(19200/4800)	$4
		$9

Cost reconciling schedule
Costs accounted for
Transferred out (4000*(5+4))	36000
Work in process July 31
Materials (2000*5)	10000
Conversion costs (800*4)	3200
Total costs	$49200