Question

Problem 16-02A Rosenthal Company manufactures bowling balls through two processes: Molding and Packaging. In the Molding Department, the urethane, rubber, plastics, and other materials are molded into bowling balls. In the Packaging Department, the balls are placed in cartons and sent to the finished goods warehouse. All materials are entered at the beginning of each process. Labor and manufacturing overhead are incurred uniformly throughout each process. Production and cost data for the Molding Department during June 2020 are presented below. Production Data June Beginning work in process units 0 Units started into production 28,820 Ending work in process units 2,620 Percent complete—ending inventory 40 % Cost Data Materials $259,380 Labor 70,216 Overhead 147,768     Total $477,364

Prepare a schedule showing physical units of production. Physical units Units to be accounted for    Work in process, June 1 enter a number of units    Started into production enter a number of units       Total units enter a total number of units Units accounted for    Transferred out enter a number of units    Work in process, June 30 enter a number of units       Total units enter a total number of units

Determine the equivalent units of production for materials and conversion costs.

		Materials		Conversion Costs
Total equivalent units		enter a number of units		enter a number of units

Compute the unit costs of production.

		Materials		Conversion Costs		Total Unit Cost
Unit Costs		$enter a dollar amount		$enter a dollar amount		$enter a total amount

Answer 1

1
Physical units
Units to be accounted for
Work in process, June 1	0
Started into production	28820
Total units	28820
Units accounted for
Transferred out	26200
Work in process, June 30	2620
Total units	28820
2
	Materials	Conversion Costs
Total Equivalent units	28820	27248
3
	Materials	Conversion Costs	Total unit cost
Unit costs	9.00	8.00	17.00
Workings:
		Equivalent Units
	Physical Units	Materials	Conversion Costs
Units to be accounted for
Work in process, June 1	0
Started into production	28820
Total units	28820
Units accounted for
Transferred out	26200	26200	26200
Work in process, June 30	2620	2620	1048	=2620*40%
Total units	28820	28820	27248
Costs		Materials	Conversion Costs	Total
Unit costs:
Total costs		259380	217984	477364
Divide by Equivalent units		28820	27248
Unit costs		9.00	8.00	17.00