Question

structions a. Compute the physical units for January and May. b. Compute the equivalent units of production for (1) materials and (2) conversion costs for each month E3.6 (LO 3. 4), AP The Cutting Department of Cassel Company has the following production and cost data for July Determine equivalent units, unit costs, and assignment of costs. Production Costs 1. Transferred out 12,000 units. Beginning work in process $ -0- 2. Started 3.000 units that are 60% complete as Materials 45,000 to conversion costs and 100% complete as to Labor 16,200 materials at July 31. Manufacturing overhead 18,300 Materials are entered at the beginning of the process. Conversion costs are incurred uniformly 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. .

please typed no hand written thank you

Answer 1

Requirement a:

	Materials	Conversion
Units transferred out	12,000	12,000
Work in process, July 31
[3,000 x 100%]	3,000
[3,000 x 60%]		1,800
Equivalent units	15,000	13,800

Requirement b:

Calculation unit cost:

	Materials	Conversion	Total
Beginning work in process	$0	$0
Started into production	$45,000	$34,500
Total cost	$45,000	$34,500
÷ Equivalent units	15,000	13,800
= Unit cost	$3.00	$2.50	$5.50

Cost Reconciliation Schedule:

Cost Reconciliation Schedule
Costs accounted for:
Transferred out [12,000 x $5.50]		$66,000
work in process, July 31
Materials [3,000 x $3.00]	$9,000
Conversion costs [$1,800 x $2.50]	$4,500	$13,500
Total Costs		$79,500