Question

ULULU FULL SCREEN PRINTER VERSION BACK Exercise 16-06 The Cutting Department of Cassel Company has the following production and cost data for July Production Costs Transferred out 12,400 units. Beginning work in process Started 3,400 units that are 60% Materials 56,090 complete as to conversion Labor 8,846 costs and 100% complete as Manufacturing overhead 22,200 to materials at July 31. $0 Materials are entered at the beginning of the process. Conversion costs are incurred uniformly during the process. Determine the equivalent units of production for (1) materials and (2) conversion costs. Materials Conversion Costs Total equivalent units of production LK TO TEXT Compute unit costs. (Round unit costs to 2 decimal places, e.g. 2.25.) Materials Conversion costs

Answer 1

i. Equivalent units:

	Materials	Conversion Costs
Total Equivalent units	15,800	14,440

Calculations:

	Equivalent units
	Materials	Conversion Costs
Transferred out units	12,400	12,400
Ending Work-in process:
[3,400 x 100%]	3,400
[3,400 x 60%]		2,040
Total Equivalent units	15,800	14,440

ii.Unit Costs:

Materials	$3.55
Conversion Costs	$2.15

Calculations:

	Materials	Conversion Costs	Total
Beginning Cost	$0	$0
Cost during period	$56,090	$31,046	$87,136
Total Costs	$56,090	$31,046	$87,136
÷ Equivalent units	15,800	14,440
= Unit cost	$3.55	$2.15	$5.70

iii. Cost reconciliation Schedule:

Costs accounted for
Transferred out [12,400 x $5.70]		$70,680
Work in process, July 31
Materials                [3,400 x $3.55]	$12,070
Conversion costs [2,040 x $2.15]	$4,386	$16,456
Total Costs		$87,136